08-14-2023 Council Meeting Packet

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Other significant base budget changes include: • The addition of part-time custodial maintenance employees in 2023 within Government Buildings is represented in the base budget ($66,230) while the decrease in contracted custodial services is represented through a budget adjustment ($75,000). • The 2023 contingency budget was at $234,000 due to unsettled labor contracts. With settled contracts for 2024, the contingency base budget was brought back to the standard $75,000 amount. Non-property tax general fund revenues increased, which decreases the need for tax levy dollars, primarily due to: • $45,000 increase in Circle Pines gas franchise fees. The budget has not kept up with the increased revenue as a result of increased gas utilization and customers. • $73,149 increase in non-business licenses and permits with the majority of the increase from projected Building Permit and Plan Inspection fees. • $25,000 decrease in fines & forfeits received from Anoka County. The budget has not been decreased to reflect the amount received in previous years. Blue Heron Days The Blue Heron Days Fund will again need support from the tax levy in 2024. After reviewing 2022 actuals, the fund reserves are expected to be used for the 2023 event. Capital Equipment Replacement In line with the City’s 2023-2027 Financial Plan, a $275,00 increase in the Capital Equipment Replacement Levy is requested in 2024. The increase continues to facilitate transitioning away from Certificates of Indebtedness and towards a Pay-As-You-Go approach to capital equipment financing. The full 2024-2028 Financial Plan has yet to be prepared, but the Capital Equipment Replacement Fund, Fund 402, portion of the plan has been provided for Council’s review. The focus during the budget process will be to approve the 2024 capital expenditures, while taking into account the plan for the fund for 2025-2028. The Capital Equipment Replacement Fund CIP begins on page 41 of the draft budget. Capital Fire Water Tender Replacement In September 2022, the Council approved a contract with Custom Fire for the purchase of two water tenders at a total cost of $2,262,000. The funding was provided through an interfund loan to be paid back with a tax levy over 10 years. The levy commences in 2024 and will go through taxes payable 2033.