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<br /> <br /> <br /> M E M O R A N D U M <br /> <br /> <br />DATE: December 13, 2016 <br /> <br />TO: Honorable Mayor and City Council <br /> Mark Casey, City Manager <br /> <br />FROM: Shelly Rueckert, Finance Director <br /> <br /> <br />ITEM: GENERAL FUND BUDGET/LEVY <br /> <br />At the July 29th work session, the City Council and Staff reviewed the 2017 Road Improvements <br />and 2017 Debt levy. The 2017 Preliminary Levy and 2017 General Fund Budget were reviewed <br />at the August 1st 2016 work session. The 2017 -2033 Capital Improvement Budgets were <br />reviewed at the October 31st work session. Additionally, public meetings were held April 26th , <br />August 23rd and September 13th for public input on the budget process. <br /> <br />Based on this process with the Council, Staff has presented 2017 levies totaling $6,450,785. <br />This represents a $399,973 increase which equates to a 6.61% percent increase compared to <br />2016 levies. <br /> <br /> <br />The parameters for preparing the General Fund Budget and Levy include: <br /> <br /> City revenues budgeted using current run rates for sources that are subject to trends <br />and conservative baseline estimates for re-occurring aids and charges for services <br /> Expenses budgeted at amounts that will maintain present level of City services <br /> Liquor transfers are based on current operating results (phased in adjustment <br />completed in 2017 levy period) <br /> <br />Each year the General Fund revenue and expenditure budget line items are examined for <br />changes in expected collections/charges, labor adjustments, changes in contract rates, <br />insurance rates, utility costs, usage of various materials or needs, etc. The findings of this <br />examination produce the drivers associated with the proposed 5.56% increase in the General <br />Fund Levy - see below: <br /> <br /> Personnel costs - 72% of General Fund expenditures, overall costs up $110,148 or 2.22% <br /> Union contract increases at estimated union settlements <br /> Health benefit costs at estimated union settlements <br /> Union Longevity and Step increases <br /> Mitigating above Public Works labor cost associated with City Center grounds <br />maintenance allocated to Community Center Fund for 2017 <br /> <br />17