07-29-2019 Council Packet (Budget)

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WS – Item 1 WORK SESSION STAFF REPORT Special Work Session Item No. 1 Date: July 29, 2019 To: Mayor and City Council From: Sarah Cotton, Finance Director Re: 2020 Draft Budget & Tax Levy Background Transmitted for your review and discussion is the first draft of the 2020 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. A Special Budget Work Session has been scheduled for Monday, July 29th. The 2020 draft budget is balanced with resources and expenditures of $11,494,695, which is a 4.74% increase relative to the 2019 adopted budget. Included in the draft are resources needed in order to continue to provide City services at their current levels. The draft budget assumes a COLA of 2.5%, as well as a 5.0% increase in the City’s contribution towards estimated health insurance premiums, a 2% increase in dental premiums, and a 5% increase in worker’s compensation premiums. A summary of adjustments to the 2020 Base Budget is provided on pages 12-13 of the 2020 Budget document (hard copy to be provided at July 22nd City Council Meeting). The total increase to the base budget of $353,908 includes: • Public Safety and Election personnel requests, respectively - $90,716 and $33,168 • Increased pavement management funding - $72,000 • Capital outlay police and fire, respectively - $32,317 and $18,200 • Increased funding for technology services, programs, and support - $20,047 • Increased funding for consulting/engineering for parks and trails projects - $15,000 • Increased funding for trail repairs/replacement and hazardous tree removals due to EAB - $12,000 • Reduced General Fund contribution to Recreation Summer Playground Program - $10,000 Construction and development activities have improved over the last year, while other revenue areas have declined, such as public safety services charges and municipal fines. Other miscellaneous revenues have remained relatively flat.