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

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Bond Fund was utilized to cover the first year of debt service on the 2015 EDA Lease Revenue bonds as well as the initial contribution to the Statewide Volunteer Firefighter Retirement Plan. The 2017 draft presented for discussion does not include the use of general fund reserves; however, it does include the transfer of $317,717 from the Closed Bond Fund to cover the second year of debt service on the 2015 EDA Lease Revenue Bonds. If the 2016 budget uses the full amount of budgeted reserves, the current general fund reserve balance would continue to be maintained at a level approximately 54% of annual expenditures. This would make $140,000 available for use in 2017 and would maintain the reserve balance and the Council policy level of 50%. Preliminary 2017 Taxable Market Values have increased 6.64%. The increase in property values is estimated to increase the City’s Net Tax Capacity Value by $1,127,868, or approximately $520,000 at the Current Tax Capacity Rate. The preliminary operating levy would increase 11.22% given the needs and requests included within this draft budget. The projected tax capacity rate would increase to 48.720% from 45.985% in 2016. To maintain the 2016 tax rate the levy would need to be reduced by $496,361. Staff is prepared to discuss the draft budget with the City Council during the initial budget work session. Attached to the draft budget is a gap analysis, as well as, draft Capital Equipment Replacement schedules. Budget work sessions may be scheduled at the discretion of the Council to achieve the desired budget level for 2017. Council action is anticipated at the September 12th meeting in order to set the preliminary tax levy and to schedule a public hearing date in December on the budget and tax levy. The preliminary levy set at the September meeting may not be increased thereafter, but may be lowered before approving the final budget and levy in December. Attachments 2016-2017 General Fund Forecast Gap Analysis 2017 Draft General Fund Operating Budget 2017 Capital Equipment Replacement (Police/Fleet) Fire Capital Equipment Replacement