06-02-2014 WS - Laserfiche WebLink

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the 43% proposed increase was reduced to an actual premium rate increase was 5.1% for 2014, 20% for 2013, 21% for 2012, and 0% for 2011. The employer’s share of PERA will increase by .25% to 7.50% for Coordinated (non-police officer) plan members, PERA coordinated rates have increased from 5.53% in 2005 to 7.50% in 2015. The Police plan will increase from 15.3% to 16.2% (.9%) in 2015, police PERA rates have increased from 9.3% in 2005 to 16.2% in 2015. The Police PERA increase will add $13,852 and Coordinated PERA will add $4,995 in 2015. The payroll cost for 49.5 FT employees is $2,380 per hour, $19,040 per day, $95,200 per 40 hour week and $4,949,616 per year. Work comp will increase by $48,100 due to a significant change in our experience mod from 1.01 to 1.33. Overall, pay and benefit costs will increase by approximately $295,000 across all funds and $201,000 for the General Fund. County dispatch fees will increase, 2014 proposed fees increased $8,903 or 8.82% to $109,819. Fire department costs will increase by about 4% in 2015, our share will depend on the cost sharing formula. Capital costs should be stable. Information technology costs will increase by $2,000 to $4,000 for 2015. Fuel prices were budgeted at $4.00 for 2014, staff would recommend using $3.25 for 2015. Overall most revenues that are tied to economic activity will be flat to improving. Investment income will remain flat to increasing in 2015 as a result of Federal Reserve activities and the weak economic recovery. The franchise fee rate is at 4.00%, the revenue is split between the General fund and the Street fund. The revenue generated from this fee will be dependent on commodity prices and economic activity in 2015 but should be consistent with 2014. 2013 General Fund unassigned fund balance is $3,097,666 this represents 52.11% of 2014 budgeted expenditures and transfers. The General Fund also has Assigned fund balance for Levy Reduction of $5,928,819, and $533,944 to balance the subsequent budget. It has been the Council’s policy to draw down these funds over time. One of the City’s goals is to develop a sustainable budget. The General Fund deficit will be over $830,000, this will be partially offset by the drawdown of assigned (levy reduction) funds of $191,000. This will leave a deficit of approximately $639,000. Conclusion Staff is looking for direction from the Council on priorities for the budget and property tax levy. The above items are some of the issues that will drive the 2015 budget and are presented for your consideration. Respectfully Submitted, Mark Beer