WORKSHOP ITEM - Joe Huss, Finance Director
Title
2021 PROPOSED TAX LEVY & GENERAL FUND BUDGET REVIEW
Background
Following a number of 2021 budget discussions to this point, most recently at the Council’s Fall Retreat held October 3, staff has prepared the 2021 Recommended General Fund Budget. This will be Council’s final review before the budget is presented at the December 14 Truth-In-Taxation public hearing.
2021 Tax Levy
At the November 2 Workshop, Council discussed the 2021 tax levy and the final allocation of that levy. As presented the current levy allocation is:
• General Fund - $27,735,000
• Debt Service - $4,900,000
• PMP - $100,000
• Parks & Trails - $350,000
• EDA - $700,000
• To be allocated - $600,000
Based on discussion at the November 2 Workshop, staff will present, for Council’s consideration, a recommendation on the final levy amount and allocation.
2021 General Fund Budget
The Preliminary General Fund Budget was adopted along with the Preliminary Levies on September 21 with an expenditure budget of $36,073,800 - a 3.9% overall increase in expenditures compared to the 2020 Adopted Budget. Since the adoption of the 2021 Preliminary Budget, $97,000 of additional cuts have been made, bringing the recommended budget to $35,976,800. This represents an overall expenditure increase of 3.6% and, with the proposed levy as mentioned above, provides a safe margin of revenue over expenditures of $262,600.
The recommended budget aligns with the Council’s established strategic goals of providing financial stability and a structurally balanced General Fund and strengthening the city’s organizational health by providing for the following:
• Implementation of the City’s new Compensation Plan with:
o A 3% cost of living adjustment (COLA)
o A $50/month increase in cafeteria benefits
• 6.25 new full-time equivalent (FTE) positions:
o Deputy Finance Director
o Patrol Sergeant
o 2 Police Detectives
o Fire Inspector
o GIS Analyst
o Assistant Public Works Director (25%)
• 5 Position Reclassifications
o Records Tech to Crime Analyst (net cost of $25,850)
o Conversion of 2 PT CSO’s to 1 FT CSO (Net FTE reduction of .4; net savings of $38,090)
o Reclassify Building Inspector to supervisor (+$3,530)
o Convert 1 PT Building Inspector to FT (+34,260)
• Contract for Embedded Social Worker (costs shared among four agencies - net cost $12,500)
• Enhanced Emerald Ash Borer containment - $175,000
The 2021 Recommended General Fund Budget provides a stable basis for the City’s structurally balanced Five-year General Fund Budget Plan.
Recommendation
Review and provide direction for 2021 Recommended General Fund Budget.