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<br />WS – Item 1 <br />WORK SESSION STAFF REPORT <br />Special Work Session Item No. 1 <br /> <br /> <br />Date: August 26, 2019 <br /> <br />To: Mayor and City Council <br /> <br />From: Sarah Cotton, Finance Director <br /> <br />Re: 2020 Budget <br /> <br /> <br />Background <br /> <br />At the August 12, 2019 Budget Work Session, the Council expressed a desire to reduce the <br />proposed levy increase to 8%. Based on this target, staff is proposing the following budget <br />cuts for 2020: <br /> <br />2020 Budget Cuts <br />Government Bldgs – Insurance (4361) $4,000 <br />Fleet – Auto Insurance (4363) $4,500 <br />Engineering – Professional Services (4300) $5,000 <br />Forestry – Contracted Services (4410) $5,000 <br />Police – Personal Services (4100) $90,717 <br />Fire – Capital Outlay (5000) $18,200 <br />Parks – Professional Services (4300) $18,000 <br />Parks – Park Board Stipend (4331) $1,650 <br />Parks – Contracted Services (4410) $12,000 <br />Other - Operating Transfers Pavement Management (4910) $72,000 <br /> Total Budget Cuts $231,067 <br /> <br />The 2018 Street Reconstruction project resulted in an additional debt levy requirement of <br />$281,799. To soften the impact of this additional debt, staff is proposing a transfer of <br />$100,000 from the Closed Bond Fund. <br /> <br />The result of the proposed budget cuts and the transfer of $100,000 from the Closed Bond <br />Fund is a 7.99% increase in the preliminary tax levy and a reduction in the tax capacity rate <br />from 41.817% in 2019 to 41.293% in 2020. <br /> <br />Staff is prepared to discuss the impact of the proposed budget cuts with the Council at the <br />work session on Monday, August 26th. <br /> <br />Attachments <br /> <br />2020 General Fund Gap Analysis