05-04-2020 Council Work Session Packet

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WS – Item 9 WORK SESSION STAFF REPORT Work Session Item No. 9 Date: May 4, 2020 To: City Council From: Sarah Cotton, Finance Director Re: 2021 Budget Calendar/Priorities Background The City Council had scheduled a strategic planning meeting for Thursday, March 19th. Due to the COVID-19 pandemic this meeting was postponed. Staff was hoping to gain an understanding of 2021 Budget priorities from the Council during the strategic planning session. The management team is in the process of preparing the 2021 budget. The proposed budget calendar is as follows: • Friday, July 17th – Electronic Proposed Budget delivered to City Council • Monday, July 20th – Hard Copy Proposed Budget delivered to City Council • Monday, July 27th – Special Budget Work Session • Monday, September 28th – Last meeting to adopt Preliminary Budget and Levy • Monday, December 14th – Adopt Final Budget and Levy The City recently received estimated taxable market value information from the County. The City’s taxable market value is estimated to increase by approximately 5%. Based on this preliminary estimate, the City’s tax levy could increase by approximately $535,000 without raising the tax capacity rate of 39.870%. However, there are several other factors to consider, including: (1) inflationary adjustments; (2) salary and benefit increases; (3) capital equipment replacement; and (4) the use of fund reserves and a transfer from the Closed Bond Fund for certain expenditures in the 2020 budget. The total transfer and use of fund reserves in 2020 was $580,000. Requested Council Direction Staff will be prepared to answer any questions the Council may have at this time, but the purpose of Monday’s discussion is for the Council to communicate any priorities staff should be aware of as we prepare the 2021 budget and confirm the proposed Special Budget Work Session date. Attachments 2020 Adopted Budget