WORKSHOP ITEM - Joe Huss, Finance Director
Title
2021 PRELIMINARY PROPOSED BUDGET
Background
At the July 13, 2020 Workshop, staff presented to Council an update of the 2021 General Fund Budget. The information included an update on non-levy revenue projections, the base budget proposals from department heads, and three levy scenarios that could be used in the development of the 2021 budget. The three scenarios included:
• A total tax levy (including the general levy and levies for debt service, PMP, Parks and Trails, and the EDA) that yields the same overall tax rate as that of 2020 (36.802%);
• A total tax levy at the same dollar amount as that of 2020; and
• A total levy that increases only for new construction/growth in tax base
Council consensus was to develop the preliminary budget within the framework of a tax levy that would yield a tax rate equal to the all-levy tax rate of 2020 - 36.802%. This is consistent with previous years’ budget process at this stage of the budget and tax levy development. There was also some interest in developing an alternative scenario with a levy that factors out the inflationary increase to existing property values and provides for a levy increase based solely on new construction within the City. A preliminary budget has been prepared under this alternative levy scenario as well.
In addition to base budget proposals, department heads have submitted proposals for new programs or new positions. Proposals for a new position or program are classified as “Decision Packages”. The City Manager is in the process of reviewing the submitted decision packages for inclusion in the recommended budget. Once the City Manager’s review of the packages is complete, the packages will be incorporated into the 2021 Proposed Budget and be presented as the City Manager’s Recommended 2021 General Fund Budget.
Recommendation
Staff is requesting a Council review of the Proposed Base Budget and further discussion of the levy scenarios to be presented before the Budget moves to the next step - the City Manager’s Preliminary 2021 General Fund Budget.