CC PACKET 09122017 - Laserfiche WebLink

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The General Fund Budget and Levy cost drivers are as follows 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 11.25% increase in the General Fund Levy - see below: • Personnel costs - 71% of expenditures, overall costs are down $220,202 or 4.34% • The Unions wage increases at the 2018 contracts amounts. • Health Insurance premium increase of 9% is shared 50/50 by City and the Union and Non-union employees Consistent with the Union contracts. • Union Longevity and Step increases • Reflects the reduction of three police officer positions and absorbing the cost sharing of supervisory positions previously funded by the Falcon Heights police contract. • Contracted services - 8% of expenditures, overall decrease of $31,135 • Public Works Miscellaneous contract costs lower by $10,334 • Contracted planning costs shared with HRA Fund reducing General Fund cost by $14,925 • School district portion of Ramsey County Elections contracted services billed directly to School district in 2018 – $4,037 • Other Insurance costs – 3.5% of expenditures, overall costs lower by $18,858 or 7.38% • Property, casualty and liability costs increased by 2% • Worker’s compensation costs decreased by 16% • Pass through costs – 5.5% of expenditures, up $11,905 or 3.37%, in turn certain revenues increase • Higher gasoline costs / Higher gasoline reimbursements • Higher Permits / Higher Building inspection fees • Remaining budget line items - 12% of expenditures or $855,216, net cost up $1,442 or 0.17% • Transfer of Liquor operating profits reduced by $50,000 in 2018 to maintain sufficient working capital within the Liquor fund. • Reduction in Charges for Services of $653,772 substantially represented by the termination of the police services contract with the City of Falcon Heights. • For the 2017 levy process the future costs associated with the officer involved shooting were not included into the levy. During 2016 these costs were paid by the General Fund. The 2016 General Fund ending fund balance was within the City’s targeted fund balance range. Staff has employed the same approach for the 2018 levy process. Staff will review status of fund balance at year-end. Fund transfers or inter-fund loans may be proposed if needed to maintain minimum fund balance. 20