Workshop Item - Joe Huss, Finance Director
Title
2020 GENERAL FUND BUDGET UPDATE
Background
On September 16, Council adopted the preliminary General Fund Budget and Tax Levy for Certification to the County. The proposed expenditure budget totaled $34,642,830 and included a “safe margin” of revenues exceeding expenditures totaling $252,770.
The total adopted preliminary tax levy was $32,050,000 allocated as follows:
• General Fund - $25,900,000
• EDA - $825,000
• Pavement Management Program - $100,000
• Debt Service - $4,875,000
• Parks, Trails - $350,000
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 2020 remains at the target rate of 36.812%.
Since the adoption of the Preliminary 2020 General Fund Budget in September, significant adjustments have been incorporated into the recommended 2020 budget. The overall effect of these adjustments would result in a net decrease in the safe margin of revenues over expenditures by $52,090 and bring the general fund’s 2020 safe margin to $200,680. By comparison, the 2019 General Fund safe margin was $80,925. The adjustments made are:
• Increase budget for intergovernmental revenues by $25,000
The increase is attributable to updated information as to the amount of Minnesota State Aid for roads maintenance the Blaine will receive in 2020.
• Increase appropriations in Police Records by $36,000
Additional contractual cost for support of new squad camera software. This additional cost reflects upgrades to the department’s squad camera system including additional cloud storage of recorded information. As discussed with the Council during the Proposed 2020 Capital Fund Budget review, the implementation of this new system will save roughly 600 in staff hours and allows the Police Department to defer the planned hiring of an additional records technician for the foreseeable future.
• Increase contractual services appropriations in GIS. At the outset of the 2020 budget process, there was a request for a new position in GIS to implement additional GIS programs and respond to the growing service requests from both the Police and Public Works departments. The estimated cost for the new position was $91,400. The staffing request was linked to a capital request of $120,000 for expanded programming in GIS. That request has been removed from the Capital Fund. The current recommendation appropriates $40,000 in GIS in 2020 to begin phasing in programming and making a determination if additional staffing is the best long-term solution.
Staff will also be providing an update on the 2020 Proposed EDA tax levy and budget.
Recommendation
Staff is requesting Council review and direction regarding the proposed updates to the General Fund Budget.