CC PACKET 09082015 - Laserfiche WebLink

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• Property and liability insurance costs – 4% of expenditures, rates up 5.22% 1 • Pass through costs – 5% of expenditures, costs up 4.39% 2 • Remaining budget line items combined – 9% of expenditures, net costs up 0.34% 3 • Impact of a reduction in liquor profits available for transfer was phased in through the use 4 of one time fees and fund balance, mitigating the general fund impact by 2.78% 5 6 The HRA budget and Levy contains cost drivers similar to the general fund. Conversely, this 7 fund does not have the same resources and transfers available to offset cost drivers. Therefore, 8 the proposed Levy increase for the HRA is 5.56% or $7,388. 9 10 The 2016 Debt Related Levies are proposed to increase by a combined 1.87% increase over the 11 2015 combined levies. The $43,537 increase represents a 0.75% increase to the Overall Levy. A 12 debt levy reduction program (Peak to Plateau) began in 2014 to stabilize the annual increase in 13 levies created the annual street reconstruction plan. Without the use of resources committed to 14 this program, the impact of 2015 street bonds issued along with existing debt service 15 requirements would have required a 5.05% increase in the Overall Levy. 16 17 The 2016 Capital Funds Levies are proposed to increase by a combined $103,990. This increase 18 is part of the phase-in plan to recognize that liquor transfers are estimated to be $146,395 less 19 than 2015. The phase-in approach uses of one time fees and fund balance. The impact of the 20 Capital levies increase is eased by phase-in approach used within the General Fund Levy. 21 22 Staff will continue to seek Grants and Donations from Federal, State and private sources to help 23 offset the cost of operations and capital equipment. 24 25 At the September 8th City Council meeting, Staff will present the preliminary 2016 General 26 Operating Budget and Property Tax Levy to the City Council. At this meeting, a resolution will 27 need to be passed certifying the preliminary levy to Hennepin and Ramsey Counties. 28 29 The final presentation of the 2016 General Operating Budget and Property Tax Levy is 30 scheduled for the December 8, 2015, Council Meeting. At the meeting, Staff will present a recap 31 of the 2016 General Operating Budget and the impact of the 2016 Property Tax Levy. 32 33 Finance Director Shelly Rueckert reviewed a powerpoint presentation summarizing the 2016 34 Proposed Budget. She reviewed the 2016 Budget Calendar: 35 • January 15-16, 2015 Goal Setting, Financial Management and Planning 36 • April 28, 2015 Public Hearing/Provide Residents with an opportunity to have input in the 37 Budget process. 38 • May – June – Staff Meetings with Department Heads – Discussion on 2016 Operating budget 39 and evaluating 5-year Capital Equipment needs. 40 • July 31, 2015 – Financial Planning work session. 41 42 Ms. Rueckert reviewed the 2016 General Fund Revenues, Liquor Sales Projection, Liquor 43 Transfers Summary, General Fund Levy Relief, 2016 General Fund Expenditures, 2016 Budget 44 Cost Drivers, 2016 Proposed Levies, Issuance of Debt/Levy Impact, Impact of Debt Levy Relief, 45 Summary of 2016 Budget, What does the General Fund Levy Support, Grant/Donations – 46 Partnerships, and Next Steps. 47 4