Laserfiche WebLink
MEMORANDUM <br />DATE: July 18, 2007 <br />TO: City Council <br />FROM: Mike Morrison, City Manager <br />Roger Larson, Finance Director <br />ITEM: PROPOSED 2008 GENERAL OPERATING BUDGET <br />City staff has submitted their budget requests for 2008. For your consideration and <br />review, staff compiled the attached booklet includes the 2007 General Operating Budget, <br />the Capital Equipment Budget. <br />The following is a summation of the 2008 budget statistics that does not include any <br />adjustments or changes to the levy based on Key Financial Planning: <br />Issues that impact the 2008 budget: <br />• Cost of living adjustment for city staff (negotiate - 3 union contracts). <br />• Rising cost of health insurance premiums. <br />• Increase in motor fuel costs; will affect all Departments. <br />• Maintenance and repair costs continue to rise. <br />• Police <br />• Add additional $30,000 to overtime budget. <br />• Phase -in the hiring of a full -time officer 2009. <br />• Utility costs for city buildings continue to rise. <br />• Capital Equipment needs (budgeted at $450,000) <br />Other adjustments to operating budget: <br />• Reclassification — Police, Fire and Public Works. <br />o Motor Fuels. <br />o Maintenance and repair costs. <br />24 hour Lauderdale Contract. <br />Based on the Key Financial Management Plan discussion earlier in the evening, the <br />Council has several other levy options available to them on the 2008 levy, <br />Proposed <br />1) General Operating Budget <br />$4,998,500 4.75% <br />2) General Fund Levy <br />$2,796,900 <br />3) General Levy Increase <br />$ 136,100 5.12% <br />4) Road Improvement Levy <br />$1,022,136 <br />5) Road Levy Increase <br />$ 136,302 15.39% <br />Issues that impact the 2008 budget: <br />• Cost of living adjustment for city staff (negotiate - 3 union contracts). <br />• Rising cost of health insurance premiums. <br />• Increase in motor fuel costs; will affect all Departments. <br />• Maintenance and repair costs continue to rise. <br />• Police <br />• Add additional $30,000 to overtime budget. <br />• Phase -in the hiring of a full -time officer 2009. <br />• Utility costs for city buildings continue to rise. <br />• Capital Equipment needs (budgeted at $450,000) <br />Other adjustments to operating budget: <br />• Reclassification — Police, Fire and Public Works. <br />o Motor Fuels. <br />o Maintenance and repair costs. <br />24 hour Lauderdale Contract. <br />Based on the Key Financial Management Plan discussion earlier in the evening, the <br />Council has several other levy options available to them on the 2008 levy, <br />