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CITY COUNCIL <br />WORK SESSION STAFF REPORT <br />ITEM NO. 11 <br /> <br />STAFF ORIGINATOR: Hannah Lynch, Finance Director <br /> <br />WORK SESSION DATE: December 4, 2023 <br /> <br />TOPIC: 2024 Budget and Tax Levy <br /> <br />______________________________________________________________________________ <br />BACKGROUND <br />Council approved Resolution No. 23-120, Amending the Compensation Plan for the Part-Time <br />Firefighter Position on November 13, 2023 without direction on the budget impact. The 2024 <br />budget impact of Resolution 23-120 is approximately $53,340. Staff provided the following in <br />regards to the budget impact in the November 13, 2023 staff report: <br /> <br />BUDGET IMPACT <br />The estimated 2024 budget impact for the City will be $53,340. The City’s proposed final tax <br />levy is at the maximum amount for 2024. If Part-Time Firefighter compensation is increased by <br />approximately $53,340 something else in the 2024 budget has to decrease by the same <br />amount. <br /> <br />Staff recommends decreasing two line items within the 2024 Fire Department budget: <br />1. Small Tools ($18,750) <br />a. The reduction would mean that some equipment that was planned to be <br />replaced or added in 2024 would not be purchased. <br />2. Training and Tuition ($12,800) <br />a. The reduction would result in the elimination of all elective and staff <br />development training opportunities; such as conferences, supervisor training, or <br />new certification courses. <br />Please note, decreasing Small Tools and Training and Tuition are a temporary fix to obtain a <br />balanced 2024 budget. In future budget years, those lines items will have to increase and will <br />result in an increased tax levy. <br /> <br />For the remainder of the budget impact ($21,790) staff recommends two options: <br />1. Decrease the General Fund contingency by $21,790 to a balance of $58,699. This is <br />another temporary fix to obtain a balanced 2024 budget. In future budget years the <br />contingency may need to increase and will result in an increased tax levy. <br /> <br />2. Decrease the interfund loan from the Sewer Fund for the purchase of the two water <br />tenders with Public Safety Aid. Use of $229,294 in Public Safety Aid for capital <br />307