CC WORKSESSION 11302015 - Laserfiche WebLink

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M E M O R A N D U M DATE: December 8, 2015 TO: Honorable Mayor and City Council Mark Casey, City Manager FROM: Shelly Rueckert, Finance Director ITEM: GENERAL FUND BUDGET/LEVY At the July 31st work session, the City Council and Staff reviewed the 2016 Preliminary Levy, 2016 General Fund Budget and 2016 Liquor operations. The 2016 Road Improvements and Debt levy were reviewed at the June 29th 2015 work session. The 2016 Utility Fund Budgets/Rates were reviewed at the November 2nd work session and were subject to a public hearing at the November 10th City Council meeting. The 2016 -2032 Capital Improvement Budgets were reviewed at the November 30th work session. Additionally, public meetings were held April 28nd, August 25th and September 8th for public input on the budget process. Based on this process with the Council, Staff has presented 2016 levies totaling $6,050,812. This represents a $219,075 increase which equates to a 3.76% percent increase compared to 2015 levies. The parameters for preparing the General Fund Budget and Levy include: City revenues budgeted using current run rates for sources that are subject to trends and conservative baseline estimates for re-occurring aids and charges for services Liquor transfer reduced to match current operating results Expenses budgeted at amounts that will maintain present level of City services Each year the General Fund revenue and expenditure budget line items are examined for changes in expected collections/charges, labor adjustments, changes in contract rates, insurance rates, utility costs, usage of various materials or needs, etc. The findings of this examination produce the drivers associated with the proposed 1.93% increase in the General Fund Levy - see below: Personnel costs - 73% of General Fund expenditures*, overall costs up 2.92% Union contract increases 2.5% Health Insurance premiums up 11.5% Union Longevity, Steps, shared HR, Workman’s compensation rates 3