08-12-2024 - Council Meeting Agenda Packet (2)

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The base budget increase of $218,051 is the result of existing personnel wages and benefits which include the following assumptions for 2025: • Cost -of -living adjustment (COLA) • 7.50% estimated increase in health insurance premiums (employer's share) • 2.00% estimated increase in dental insurance premiums (employer's share) • 6.00% estimated increase in workers compensation insurance premiums • Wage & benefit assumptions for vacant positions Non -property tax general fund revenues decreased $16,462 which increases the need for tax levy dollars. The decrease can primarily be attributed to the decrease in building permits and plan inspections fees, partially offset by increases in state aid, interest on investments, and refunds & reimbursements. The transfer in of $20,000 from the Cable TV & Communications Fund has been discontinued. The transfer previously supported the cost of the Communications Specialist position within the Administration Department. Rookery Activity Center The Rookery Activity Center tax levy is not proposed to increase, although the proposed 2025 budget includes a $99,123 deficit. The Public Services Director will be prepared to highlight additional revenue opportunities or areas where expenditures could be lightened for City Council direction. The Rookery Activity Center began operations in Spring 2022 and completed its first full fiscal year in 2023. The 2024 budget included a $500,000 tax levy which brought tax levy support for recreation funding back to pre -pandemic levels. Prior to the COVID-19 Pandemic and the opening of the Rookery, the tax levy supported the YMCA facility and recreation programming at roughly $490,000 annually. Capital Equipment Replacement In line with 2024-2028 Financial Plan, a $210,000 increase in the Capital Equipment Replacement Levy is proposed for 2025, for a total levy of $810,000. Citywide capital expenditures proposed to be funded with the levy in 2025 are included in the 2025-2029 Financial Plan, while also summarized on page 38 of the 2025 Annual Budget (Fund 402). The levy increase continues to facilitate transitioning away from Certificates of Indebtedness and towards a Pay -As -You -Go approach to capital equipment financing. The impact of that levy can be seen on the Projected Cash Balance statement for the Capital Equipment Replacement Fund on page 139 of the 2025-2029 Financial Plan.