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WORK SESSION STAFF REPORT <br />Work Session Item No. 1 <br />Date: August 14, 2023 <br />To: City Council <br />From: Hannah Lynch, Finance Director <br />Re: 2024 Draft Budget & Tax Levy <br />Background <br />A 2024 Draft Budget & Tax Levy is provided for Council’s review. The draft was <br />prepared by department directors and reviewed by the City Administrator with the <br />intention of providing the resources needed to continue city services at their current <br />levels. <br />The draft includes a proposed total tax levy of $13,945,928 which represents a <br />$1,052,013 or 8.16% increase. With an increase in tax capacity values, the city tax rate is <br />proposed to increase to 35.535% in 2024 from 34.974% in 2023. <br />Detail behind the $1,052,013 total tax levy increase can be found on pages 11-12 of the <br />draft budget. <br />Staff is looking for Council’s direction regarding where attention should be given to <br />reduce the tax levy, if desired. <br />General Fund <br />Total 2024 adjustments requested amount to $543,171 as detailed on pages 11-12 of the <br />draft budget. <br />The base budget increase of $423,158 is primarily the result of existing personnel wages <br />and benefits which include the following assumptions for 2024: <br />•3.00% COLA and 0.75% market adjustment in accordance with labor contracts <br />•Continued implementation of the compensation plan approved in 2020 <br />•5.00% estimated increase in health insurance premiums (employer’s share) <br />•5.00% estimated increase in dental insurance premiums (employer’s share) <br />•3.00% estimated increase in workers compensation insurance premiums <br />o In addition to the 3.00% increase, premiums reflect an increased <br />experience modification/multiplier as realized with the 8/26/2023 to <br />8/26/2024 quote <br />•Wage & benefit assumptions for vacant positions