08-05-13 Council Packet - Laserfiche WebLink

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WS – Item # 10 WORK SESSION STAFF REPORT Work Session Item No. 10 Date: July 30, 2013 To: Mayor and Council Members From: Al Rolek Re: 2014 Draft Budget and Tax Levy Transmitted for your review is the first draft of the 201 4 Budget and tax l evy proposal. The draft was prepared by d epartment d irectors 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 ini tiatives identified by the City Council. Draft Budget. The 2014 draft budget is balanced with resources and expenditures of $8,947,775, a 1.2% increase from the 2013 adopted budget. T he draft includes the resource s needed to continue the City s ervices a t their present levels and maintains the Ci ty’s efforts toward street maintenance. The budget includes a two percent w age increase, as well as PERA contribution increases and adjustments in the C ity ’s contribution toward estimated health insurance premium s . With the exception of the elimination of the Economic Deve l opment Coordinator position, the draft maintains personnel at 2013 levels. Increases in fuel costs and electric rates are reflected in the draft. Adjustments have also been made in considera tion of the sales tax exemption. Expenditure estimates in all areas continue to represent only what is required to continue services at their current levels. No new initiatives, capital outlay , or other increases have been included in this draft. C onstr uction and development activities have improved over the last year , and oth er revenue areas, such as MSA, have also shown some improvement. I nterest income and other revenues continue to lag, increasing reliance on property taxes . To reduce the strain on property tax levels the draft includes the use of $165,947 in general fund reserves, the same level as in the adopted 2013 budget. The general fund reserve balance would continue to be maintained at a level greater than 52 percent of annual expenditures. Also included in the proposal is the use of drug forfeiture funds to fund a police sergeant position. This is a one -time use of funding for the 2014 budget.