07-11-2016 Council Packet (2) - Laserfiche WebLink

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WS – Item 1 WORK SESSION STAFF REPORT Special Work Session Item No. 1 Date: July 11, 2016 To: City Council From: Sarah Cotton, Finance Director Re: 2017 Draft Budget & Tax Levy Background Transmitted for your review and discussion is the first draft of the 2017 Budget and Tax Levy. The draft was prepared by department directors and reviewed by the City Administrator with the intention of providing the resources needed to continue city services at their current levels. The draft also incorporates the priorities and initiatives identified by the City Council. The 2017 draft budget is balanced with resources and expenditures of $10,322,000, a 4.5% increase over the 2016 adopted budget. Included in the draft are resources needed in order to continue to provide City services at their current levels and continue the City’s efforts towards street maintenance. The draft budget assumes a COLA of 2.5%, as well as a 7.5% increase in the City’s contribution towards estimated health insurance premiums, and a 4% increase in dental premiums. A part-time Office Specialist position has been incorporated into the draft to support Public Services, with .3 FTE effecting the general fund budget. Security Cameras for the Civic Complex and two Fire Stations have been incorporated into the draft, in addition to the annual maintenance agreement for storage and support. Other recognized professional service and contractual needs are also reflected in the draft. Finally, the 2017 draft budget includes approximately $16,300 relating to Emerald Ash Borer tree replacement and injections initiatives. Items not included in the draft 2017 budget, but requested by department directors, are listed below. These items may warrant further discussion by the Council. • Police Department Staffing Study - $30,000 • Playground Equipment Replacement (2) - $80,000 • Marshan Park Open Air Shelter - $40,000 • Police Body Cameras - $22,000; Annual Storage/Support - $26,000 Construction and development activities have improved over the last year, while other revenue areas, such as intergovernmental and miscellaneous remain relatively flat. The 2016 budget included the use of $423,000 in general fund reserves to reduce the strain on property tax levels, in addition to $100,000 from the Office Equipment Revolving Fund and $378,084 from the Closed Bond Fund. The amount transferred from the Closed