Agenda Packets - 2012/06/04 - Laserfiche WebLink

Home Browse Search

The City has settled all three union contracts for 2013 and agreed to 1½ % cost of living wage increase. 13 employees will receive step or longevity increases in 2013. The 2012 budget provided 1½ % wage increase and the 2011 and 2010 budgets provided for no cost of living wage increase. Health insurance cost increases are not known, we will receive our rate notice in mid August. The impact to the budget will depend on the size of the rate increase. The City’s health insurance contribution increased $50 in 2012 to $917.33 per month and will be tiered in 2013 based on the percentage increase in premiums with a maximum increase of$32.67. The employer share of PERA will remain at 7.25% for Coordinated plan members and 14.4% for Police for 2013. PERA coordinated rates have increased from 5.53% in 2005 to 7.25% in 2012, police PERA rates have increased from 9.3% in 2005 to 14.4% in 2012. The payroll cost for 48 FT and 2 PT employees is $2,196 per hour, $17,568 per day, $87,840 per 40 hour week and $4,468,465 per year. County dispatch fees will increase $11,528 or 12.78% to $101,717. Fire department costs will most likely increase in 2013 depending on the cost sharing formula. Information technology costs will be flat for 2013. Fuel prices were budgeted at $4.00 for 2012, staff would recommend using $4.00 for 2013. Overall most revenues that are tied to economic activity will be flat. Investment income will remain flat in 2013 as a result of Federal Reserve activities and the threat of recession in 2013. The franchise fee rate is at 4.00%; the revenue generated from this fee will be dependent on commodity prices and economic activity in 2013. 2011 General Fund unassigned fund balance is $3,200,472 this represents 58.61% of 2012 budgeted expenditures and transfers. The General Fund also has Committed fund balance of $6,292,906, which was previously in the Levy Reduction Fund. 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 in the $300,000 to $400,000 range this will be partially offset by the drawdown of the committed funds of $158,000. This will leave a deficit of between $142,000 - $242,000. 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 2013 budget and are presented for your consideration. Respectfully Submitted, Mark Beer