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<br />WS – Item 2 <br />WORK SESSION STAFF REPORT <br />Special Work Session Item No. 2 <br /> <br /> <br />Date: July 27, 2020 <br /> <br />To: Mayor and City Council <br /> <br />From: Sarah Cotton, City Administrator <br /> <br />Re: 2021 Draft Budget & Tax Levy <br /> <br /> <br />Background <br /> <br />Transmitted for your review and discussion is the first draft of the 2021 Budget and Tax <br />Levy. The draft was prepared by department directors and reviewed by the City <br />Administrator with the intention of providing the resources needed to continue city services <br />at their current levels. A Special Budget Work Session has been scheduled for Monday, <br />July 27th. <br /> <br />The 2021 draft budget is balanced with resources and expenditures of $12,212,439, which <br />is a 9.09% increase relative to the 2020 adopted budget. Included in the draft are resources <br />needed in order to continue to provide City services at their current levels. The draft budget <br />assumes a COLA of 2.5%, as well as a 4.0% increase in the City’s contribution towards <br />estimated health insurance premiums, a 5% increase in life and long-term disability <br />premiums, a 5% increase in dental premiums, and a 5% increase in worker’s compensation <br />premiums. <br /> <br />A summary of adjustments to the 2021 Base Budget is provided on pages 10-11 of the 2021 <br />Budget document (hard copy to be provided). The total increase to the base budget of <br />$973,597 includes: <br /> <br />• Personnel requests in Administration, Police, Streets, and Recreation - $478,711 <br />• Increased funding for trail repairs/replacement and miscellaneous park <br />improvements - $71,000 <br />• Increased pavement management funding - $66,150 <br />• Capital outlay police and fire, respectively - $53,406 and $127,200 <br />• Increased funding for turn-out gear replacement - $28,400 <br />• Increased funding for technology services, programs, and support - $23,246 <br />• Increased funding for training programs in police and fire - $20,800 <br />• Increased funding for median maintenance along Lake Drive and Town Center <br />Parkway - $11,000 <br />• Street Light Replacement in Rice Lake Estates - $19,000 <br />• Funding to purchase a Trailer Mounted Message Board - $17,500 <br />• Increased funding to cover the cost of balancing the Air Handling Units at the Civic <br />Complex - $24,000