Workshop Item - Joe Huss, Finance Director
Title
2019 GENERAL FUND BUDGET UPDATE
Background
On September 20, Council adopted the preliminary General Fund Budget and Tax Levy for Certification to the County. The proposed expenditure budget totaled $32,266,450 and included a “safe margin” of revenues exceeding expenditures totaling $112,950.
The total adopted preliminary tax levy was $29,274,100 allocated as follows:
• General Fund - $23,869,100
• EDA - $680,000
• Pavement Management Program - $500,000
• Debt Service - $3,925,000
• Parks, Trails - $300,000
At this point, the City has received no updates from Anoka County regarding market value estimates and other tax-base related information. Thus, the estimated combined overall tax rate for 2019 remains at the target rate of 36.842%.
Since the adoption of the Preliminary 2019 General Fund Budget in September, three adjustments have been incorporated into the expenditure portion of the 2019 budget. The overall effect of these adjustments would result in a net decrease in expenditure appropriations of $5,000, thereby increasing the fund’s 2019 safe margin to $117,950. The adjustments made are:
• Decrease appropriations in the City Attorney Division by $75,000
The reduction is attributable to the new five-year contract with Eckberg Lammers for both Civil and Criminal Prosecution services approved by the Council in October.
• Increase appropriations in Public Works by $70,000
o Additional Public Service Position. Over the last 10 years, the City has added roughly 20 miles of City-maintained roadways. Public Works is requesting an additional position for streets maintenance and to support the addition of a new plow route in 2019. The hiring of this position would be deferred to the last quarter of 2019 and would require a budget appropriation of $25,000.
o Enhanced Maintenance and Landscaping of Medians. Staff is requesting an appropriation of $45,000 for contractual maintenance of medians on Radisson Road and 109th Avenue.
Staff will also be providing an update on the 2019 Proposed EDA tax levy and budget.
Recommendation
Staff is requesting Council review and direction regarding the proposed updates to the General Fund Budget.