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71 <br />MEMORANDUM <br />DATE: August 26, 2014 <br />TO: City Council <br />FROM: Mark Casey, City Manager <br />Shelly Rueckert, Finance Director <br />ITEM: GENERAL FUND BUDGET/LEVY <br />At the August 4`h work session, the City Council and Staff reviewed the 2015 General Operating. <br />Additionally, a public hearing was held April 22"d for public input on the budget process. <br />Based on discussions with the Council, Staff has prepared a proposed 2015 General Operating <br />Budget. This represents a $218,900 dollar or a 3.9% percent increase from 2014. The <br />parameters for preparing the budget included: <br />1) Revenues are budgeted using current trends for variable revenue sources and <br />conservative estimates for stable revenue sources. Expenses are budgeted at amounts <br />that will maintain present levels of City services. <br />2) Salaries adjustments are estimated at union settlements. <br />3) Health Insurance premiums up 10.5% with the City's share of costs estimated at <br />union settlements. <br />4) State Pension funding rates up 3.5-5.9% for 2015, worker compensation costs up <br />13%, other insurance costs up 12.25%, and energy related expenses are expected to <br />increase at various rates <br />5) Road levy increase of .94% results from the addition of the 2014 Road Project along <br />with slight increases in debt requirements for Public Facilities and Tax Abatement <br />Debt. Mitigated by the schedule levy reduction of $147.500. <br />Levy Relief was achieved by the use of $62,448 of additional Local Government Aid and debt <br />levy reduction as detailed below: <br />■ Pre -levy relief increase <br />7.64% <br />■ With debt reduction <br />5.01% <br />■ With additional LGA <br />3.90% <br />■ Estimated increase in City rate with TIF <br />Decertification - <br />.42% <br />