Laserfiche WebLink
levies from inclusion in the cap calculation. The maximum the levy could increase <br />under the City Charter is 3% – 4% depending on inflation. ($113,982 to $151,976) <br /> <br />The City will be negotiating with the four bargaining units for the 2010/2011 contract <br />years thus there are no settled contracts at this time to use as an indicator for <br />budgeting. An indicator of what other government unions have agreed on is the two <br />largest State of Minnesota unions have agreed to no pay increases for the next two <br />years. <br /> <br />Health insurance cost increases are not known, we will receive our rate notice in mid <br />August. The impact to the budget will depend on the labor contracts. The City provided <br />increases of $50 per month for health insurance the last two years. <br /> <br />The employer share of PERA will increase by .25% in 2010 which will add about $6,000 <br />to personnel costs. <br /> <br />Fire department costs are projected to remain flat in 2010. <br /> <br />Information technology costs will not increase for 2010. <br /> <br />The City will realize $42,000 in savings for 2010 with the retirement of two senior police <br />officers in 2009 and the hiring of two newer officers. <br /> <br />Overall most revenues that are tied to economic activity will be flat or declining such as <br />building permit and fee revenue. Investment income will decline in 2010 as a result of <br />interest rate cuts and a weak economy. The franchise fee rate is at 3.75%, the revenue <br />generated from this fee will most likely decline in 2010 as a result of lower energy costs <br />and reduced economic activity. <br /> <br />2008 General Fund reserves are $2,655,097 this represents 44% of 2009 budgeted <br />expenditures and transfers. Fund balance increased by $88,389 for 2008 as a result of <br />decisions the City Council made in an effort to off-set the coming LGA cuts in 2009. <br />Use of fund balance and transfers will be necessary to balance the General Fund <br />budget for 2010. <br /> <br />Conclusion <br />Staff is looking for direction from the Council on priorities for the budget and property tax <br />levy. The above items are some of the issues that will drive the 2010 budget and are <br />presented for your consideration. <br /> <br />Respectfully Submitted, <br /> <br /> <br /> <br /> <br />Mark Beer