Agenda Packets - 2024/08/05 - Laserfiche WebLink

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Item No. 4. Meeting Date: August 5, 2024 Type of Business: Council Work Session City Administrator Review: ______ City of Mounds View Staff Report To: Honorable Mayor and City Council From: Gayle Bauman, Finance Director Item Title/Subject: Review Draft Municipal Budget for 2025 Staff is requesting City Council to review and provide feedback on the attached Draft Municipal Budget for the 2025 fiscal year. Revenues for the utility funds have not been included in this review as staff is still working on the rate analysis. The City Council must adopt a preliminary tax levy by September 30th and submit it to the County Auditor. GENERAL FUND (Fund 100) A few changes are being proposed to the way the City accounts for certain items. The annual transfers out of the General Fund are in essence a transfer of tax levy dollars to another fund. It is being proposed to actually budget for the levy in those funds and dispense with the annual recurring transfers. Another change being proposed is related to lodging taxes. The City currently books revenue for 100% of the fees collected and then books an expenditure for the 95% remitted to Twin Cities Gateway. It is being proposed to net the two and only book the 5% revenue the city actually collects. Revenues 100-3180 Franchise taxes have been slowly declining over the past years. Assuming this trend will continue. 100-3341 LGA amounts are not yet known for 2025. 100-3357 Budget assumes the City will be reimbursed 100% of the Peace Officer Benefit payments. 100-3371 School Resource Officer payments are booked at 100% for 2025. 100-3432 Expenditures will need to be increased for any tree revenue booked. 100-3610 Unsure what Interest Revenue will be in 2025. 100-3631 Water Tower rental payments are down due to the Sprint merger. Wages and benefits The 2025 preliminary budget is currently being prepared assuming a 3.0% wage adjustment for all staff and an increase of $45 per month for insurance benefits. Total FTE’s for the city are going down by 0.775. This is due to the elimination of the Community Development Director and part time Accounts Payable Specialist positions and the increase of hours for two of our part time positions (one increasing from 20 to 30 hours a week and the other increasing from 20 to 25 hours a week). There is a request to increase one of the 20 hour per week front desk positions at the Community Center to full time, but this is not reflected in this draft of the budget. Advisory Commissions (100-4110) Legal fees are being increased based on past history. Also, the use of the Twin Cities Gateway grant funds has not been budgeted in the past. This has been added in 2025.