CC WORKSESSION 08032009 - Laserfiche WebLink

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2 Two exceptions are: (1) The 2010 Mayor /City Council budget was increased to include pay for planning commission members. (2) The 2010 Police budget reflects $11,300 in step increases due three officers of the Police Department. To calculate this budget staff used 2008 actual costs of $1,681,859 times 3.5% for 2009 = $1,740,724 + $11,300 for step increases totals $1,752,024 (2010 budget = $1,752,100). In preparing the 2010 budget, Non - salary expenditure line items were also restructured to adjust budgeted expenditures closer to actual costs. Whenever applicable, the basic method used to determine the 2010 budget included taking a two year average (2007 & 2008) of actual costs. In addition to using a two -year averaging method, Staff considered using three and five year averages of actual costs. When reviewing these numbers it became apparent that a two -year average reflected costs that were the closest to current expenditures and current activity. Three years didn't change the numbers much and we started picking up data that did not reflect current activity such as the utility costs for additional street lighting. When using a five -year average it became very apparent that the chance of including statistics that would not accurately reflect current costs or activity significantly increased. A clear example of this would be fuel costs. The cost of fuel increased dramatically in 2008. Using a five -year average of actual costs expenditures would be from 2004 through 2008. In 2004, the volatility of fuel costs was not an issue. In addition, using 2004 data we started picking up actual costs before the hiring of a police officer or including expenditures when for a period of time the City operated with one less public works employee. Examples of two -year averaging would be as follows: Mayor /City Council - Consulting Services (101- 40100 -320) 2007 Actual $5,500 + 2008 Actual $8,781 Divided by 2 = $7,140.50 (2010 Budget = $7,100). Engineering - Consulting Services (101- 40700 -320) 2007 Actual $2,775 + 2008 Actual $3,612 Divided by 2 = $3,193.50 (2010 Budget = $3,200). Fire — Training (101- 41200 -341) 2007 Actual $4,575 + 2008 Actual $5,762 Divided by 2 _ $5,168.50 (2010 Budget = $5,200). Parks — Central Park Lights (101- 45500 -336) 2007 Actual $19,695 + $15,350 Divided by 2 = $17,522.50 (2010 Budget = 17,500). When going through the process of restructuring the budgets, both revenue and expenditure line items were adjusted to reflect closer to actual. It should be noted that by restructuring the budgeting process, some budgets increased while other decreased.