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2017 General Fund Budget Components (Exhibit B) This exhibit is a similar document used the 2016 General Fund Budget process. As you can see the overall general fund sources and uses are summarized by type. This allows for an overview of what the cost drivers and where revenue source volatility exists. Comments are included which explain budget to budget differences. The significant cost factors remain to be changes in personnel costs, insurance and contracted services. Challenges faced on the revenue side include reduction in tax increment collections due to overall jurisdiction rate changes and LGA uncertainty associated with a special session process. 2017 General Fund Budget Detail (Exhibit C & D) This exhibit details the general fund revenues and expenses that are used on the budget document. This is the general funded expensed detailed in a departmental based format. Therefore the cost of any particular City service can be reviewed in detail. 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 3.47% increase in the General Fund Levy - see below: • Personnel costs - 72% of expenditures, overall costs up 2.22% • Union contract increases at estimated union settlements • Health benefit costs at estimated union settlements • Union Longevity and Step increases • Mitigating above Public works labor cost associated with City Center grounds maintenance allocated to Community Center Fund for 2017. • Contracted services - 8% of expenditures, overall increase $108,369 • Salo Park maintenance costs shifted from HRA fund to General Fund – $36,000 • Janitorial services transferred from the Community Center Fund to General Fund, no increase in the actual cost of services from 2016 to 2017 services – $42,936 • IT contracted services up – $25,408 • Other Insurance costs – 4% of expenditures, overall costs up 4.94% • Property, casualty and liability costs declined 11% • Worker’s compensation costs increased 26% • Pass through costs - 4% of expenditures, costs down 13.63% • Lower gasoline costs • Remaining budget line items combined - 12% of expenditures, net costs down 2.16% The HRA budget and Levy contains cost drivers similar to the general fund. Conversely this fund does not have the same resources and transfers available in order to offset cost drivers. Therefore the proposed Levy increase for the HRA is 12.58% or $17,630, substantially the maximum levy allowed. This levied amount will allow the Fund to reduce its negative cash position.