09-03-2019 Council Packet - Laserfiche WebLink

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WS – Item 5 WORK SESSION STAFF REPORT Work Session Item No. 5 Date: September 3, 2019 To: City Council From: Sarah Cotton, Finance Director Re: 2020 Budget Background At the August 26, 2019 Budget Work Session, staff proposed the following budget cuts for 2020: 2020 Budget Cuts Government Bldgs – Insurance (4361) $4,000 Fleet – Auto Insurance (4363) $4,500 Engineering – Professional Services (4300) $5,000 Forestry – Contracted Services (4410) $5,000 Police – Personal Services (4100) $90,717 Fire – Capital Outlay (5000) $18,200 Parks – Professional Services (4300) $18,000 Parks – Park Board Stipend (4331) $1,650 Parks – Contracted Services (4410) $12,000 Other - Operating Transfers Pavement Management (4910) $72,000 Total Budget Cuts $231,067 In addition, staff proposed a transfer from the Closed Bond Fund in the amount of $100,000 to soften the impact of the additional debt service requirements in 2020 associated with the 2018 Street Reconstruction project. Council expressed concern with reducing the transfer of funds for street maintenance per the city’s Pavement Management Plan. It was the desire of the council to continue funding the plan at an increase of 5% per year. Staff has prepared an updated Gap Analysis, including the addition of $31,500 to pavement management funding in 2020, an increase of 5% over the 2019 level of $630,000. Budget work sessions may be scheduled at the discretion of the Council to achieve the desired budget level for 2020. Council action is requested by the September 23rd 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 2020 General Fund Gap Analysis