09-09-2015 Council Packet - Laserfiche WebLink

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5.0% - $29,381 4.5% - $41,395 4.0% - $53,410 3.5% - $65,423 3.0% - $77,438 2.5% - $89,452 2.0% - $101,467 Note: The amounts above reflect our assumption of a 97.5% collection rate. On the General Fund revenue side, most categories are relatively flat with the exception of property taxes. We also continue to budget building permit revenues very conservatively for two reasons. One reason is without much undeveloped land, it is tough to plan for consistent new construction given redevelopment is usually needed. The other reason is we want to avoid shortfalls during economic downturns that would force other expense reductions to keep the budget balanced. In a year when activity is higher than those projections, we will typically see a transfer to the General Capital Improvement Fund which also helps keep pressure off levy increases. In 2015, we are dramatically ahead of budget in this category due to the hail storm that generated a lot of re -roofs and the new Assisted Living project on Rice Street. One other revenue growth area is our MSA (Municipal State Aid) allotment increase of just under $9,500. This amount is 25% of our total allotment that can be used for maintenance purposes. The balance of $296,089 is used to help fund road construction costs. On the expense side of things, they are up 4.16% in the General Fund. Some of the major expense drivers are as follows: • Election costs are up $11,525 with 2016 being an election year. • Administration is up $19,132 (13%) due to some of the staffing changes we discussed, health insurance costs, and increased network support costs. • Attorney costs are up $5,000 (4.9%) due to increase used in civil services (meeting attendance, ordinance drafting, and research). • Sheriff's Department Budget shows increase of 3.77%. However, as our single biggest expense, that accounts for a dollar increase of $50,400. As you will note when looking at the summary budget for the Sheriff's Department contracts, our percentage increase is higher than most. This is due to picking up about $3,400 in 2016 for the second year of the Power Shift cost re -allocation (based on historical averages). We also had growth in our percentage of calls for service which drives a number of factors in their overall budget. • In Streets, costs are up $37,825 (12.25%). The major changes include $13,000 more for sealcoating based on our schedule and $10,000 for street striping given all crosswalks will be repainted next year. Health insurance is another big factor. • The City Garage is up $11,680 (78%) mainly due to allowing for higher utility costs associated with a larger building ($4,400) and the contract for cleaning services ($7,350) • From a salary perspective, we budgeted a 2.5% cost of living adjustment salary scales. (More discussion on this subject will occur at a future workshop.) H;\sharonP\Budget 2016\2016 Preliminary Budget Memo - 9.04.15.docx