04-19-2021 WS - Laserfiche WebLink

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Information technology costs (phones, computers, copiers, cameras, squad computers, network switches, desktop services, virtual servers, internet, email, software, laserfiche, anti-virus, VPN connections, and facility WiFi) will increase by 5-7% due to additional services and transition to a joint powers entity away from the City of Roseville. This moves Roseville employees to the joint powers entity for long term stability and continuity. This continues to be an excellent value for the City. Fuel prices were budgeted at $2.30 for 2021, with the current economic conditions staff is recommending $2.75 for 2022. Overall most revenues that are tied to economic activity will be improving over 2021. Investment income will decline in 2022 as a result of Federal Reserve activities and impacts from the pandemic. The franchise fee rate is at 4.00%, the revenue is split between the General fund and the Street Improvement fund. The City will receive American Rescue Plan Act Funds in 2 allocations, May/June of 2021 ($750,000) and May/June 2022 ($750,000) based on preliminary estimates. U.S. Treasury guidance will be forthcoming on eligible expenses/revenue recovery. 2020 General Fund unassigned fund balance is $4,662,432 this represents 63.76% of 2021 budgeted revenues and transfers compared with 55.50% for the prior year. The City received an unbudgeted CARES Act grant of $1.004 million which increased fund balance by $553,761. The General Fund also has Assigned fund balance for Levy Reduction of $5,033,580, and $448,535 to balance the subsequent budget. It has been the Council’s policy to draw down the levy reduction funds over time. The City Council adopted a strategic plan for 2020 thru 2022. One of the City’s strategic goals is to develop a balanced budget and reduce reliance on the Levy Reduction Assigned Fund balance and LGA by 3% to 5% from 2020 thru 2022. The General Fund deficit will be $500,000 to $600,000 this will be partially offset by the drawdown of assigned (levy reduction) funds of $238,000 which reflects the strategic goal. This will leave a deficit of approximately $262,000 to $362,000 before considering any expenditure reductions, use of fund balance or a levy increase. 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 2022 budget and are presented for your consideration. Respectfully Submitted, Mark Beer