CC PACKET 09132016 - Laserfiche WebLink

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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 5.56% increase in the General Fund Levy - see below: • Personnel costs - 72% of expenditures, overall costs up $110,148 or 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 $12,017 or 4.94% • Property, casualty and liability costs declined 11% • Worker’s compensation costs increased 26% • Pass through costs - 4% of expenditures, costs down $44,114 or 13.63%, in turn revenues down equal amount • Lower gasoline costs / Lower gasoline reimbursements • Remaining budget line items - 12% of expenditures, net costs down $20,136 or 2.16% • Revenues reductions substantially due to tax increment collections and fund transfers combined for $44,780 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. The 2017 Debt Related Levies are proposed to increase by $42,010 over the 2016 combined levies. A debt levy reduction program (Peak to Plateau) began in 2014 to stabilize the annual increase in levies created by the annual street reconstruction plan. Without the use of resources committed to this program the impact of 2016 street bonds issued along with existing debt service requirements would have required an additional 5.99% increase in the overall Levy. The 2017 Capital Improvement Fund Levy is proposed to increase by $152,210. The portion of this increase related to the 2015 phase in plan to rebase liquor transfers is $77,210. The additional $75,000 increase is to provide funding needed to replace daily operating equipment as its useful life expires. 20