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2015 Annual Report • Finance Department • St. Anthony Village, Minnesota <br /> <br /> <br /> <br />9 <br /> <br />2 016 TAX LEVY EST ABLISHED IN 2 015 <br />In preparing the 2016 budget, Staff continued its mission to maintain the existing level of City <br />services and programs with the use of financially conservative budgeting. Overall, the 2016 levy <br />increased by $219,075 over last year’s levy amount. This represents a 3.76% increase over 2015. <br />The City’s General Fund provides the support for City services. The parameters for preparing <br />the General Fund Budget and Levy include: <br /> City revenues budgeted using current run rates for sources that are subject to trends and <br />conservative baseline estimates for re-occurring aids and charges for services <br /> Liquor transfer reduced to match current operating results <br /> Expenses budgeted at amounts that will maintain present level of City services <br />The 2016 General Fund Levy increased by 1.93% with the relevant cost drivers detailed below: <br /> Personnel costs - 73% of General Fund expenditures, overall costs up 2.92% <br /> Union contract increases 2.5% <br /> Health Insurance premiums up 11.5% <br /> Union Longevity, Steps, shared HR, Workman’s compensation rates <br /> Contracted services - 9% of expenditures, overall costs up 3.05% <br /> Property and liability insurance costs - 4% of expenditures, rates up 5.22% <br /> Pass through costs - 5% of expenditures, costs up 4.39% <br /> Remaining budget line items combined - 9% of expenditures, net costs up 0.34% <br />The City again employed two elements of property tax relief for 2015. First the impact of the <br />reduction in liquor profits transfer was phased in with the use of one time fees and fund balance, <br />mitigating the overall levy impact by 0.57%.The second element was the continuation of the <br />City’s is the “Peak to Plateau” initiative started in 2014 to mitigate the levy impact of the annual <br />street reconstruction program expected to continue into the next decade. The scheduled debt <br />levy reduction for 2016 of $301,921 provided 5.18% of levy relief on the overall levy requirement. <br />These two elements of Property Tax relief reduced the Overall Levy increase required for 2016 <br />and reduced the overall from 9.51% to 3.76%, as demonstrated in the graph below. <br />Impact of Levy Relief <br /> <br /> 9.51% <br />Prior to levy relief <br />8.93% <br />Phase –in relief <br /> <br />3.76% <br />Debt levy Reduction <br />