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<br /> <br /> STAFF REPORT <br /> <br /> <br /> <br />TO: Mayor Keis and Members of City Council <br /> <br />FROM: Joel Hanson, City Administrator <br /> Sharon Provos, Finance Director <br /> <br />DATE: October 27, 2017 <br /> <br />RE: 2018 Budget – Capital Improvement Program Review & General Fund <br />Update <br /> <br />At Wednesday’s meeting, we will review the proposed Capital Improvement Funds that make up <br />the 2018 proposed budget. These funds include the following: <br />• General Capital Improvement Fund #400 <br />• 10% Gambling Fund #408 <br />• Infrastructure Replacement Fund #450 <br />• Park Land Acquisition Fund #456 <br />• Fire Equipment Replacement Fund #457 <br />• Owasso/Woodlyn Redevelopment Fund #474 <br />• Water & Sewer Capital Replacement Fund #604 <br /> <br />The key highlights for each fund are as follows: <br /> <br />General Capital Improvement Fund - #400: <br /> <br /> The two primary sources of revenue for this fund are the General Fund excess surplus <br />transfer (based on the previous year’s budget performance) and Local Government Aid <br />(LGA). For 2017, we had a reserve fund transfer of $496,472 that was a major boost to <br />this fund. We also received $243,733 of LGA in 2017. For 2018, our LGA allotment <br />increased by $41,749 that benefits this fund. If we maintain the levy increase we <br />certified, we also gain another $60,000. Those numbers are reflected in the revenue <br />estimates. We also continued to not show LGA beyond the current year. You will note <br />that the preliminary numbers have this fund going negative in 2021. LGA allotments for <br />2019 through 2022 at current levels would add another $1,381,928 to the fund balance <br />and more than offset the projected deficit. However, we may want to adjust <br />expenditures (or show future LGA allotments) so that we show a positive fund balance <br />for all five years. <br /> The Parks & Recreation Commission has not yet finalized their priorities. They have <br />done some initial ranking, but they have not seen what impact that has on the overall <br />budget. Here are their top priorities: <br />1. Gervais Mill Park Garden Renovation - $51,750 (held over from 2017) <br />2. Spooner Park Playground - $129,000 (held over from 2017 and increased <br />from $115,000 due to possible modifications to curbing.