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City Council Regular Meeting Minutes September 12, 2017 Page 3 1 Finance Director Shelly Rueckert stated at the August 22th City Council meeting, the City Staff 2 presented the proposed 2018 General Fund Operating Budget and the 2018 Overall levy. 3 Additionally, a public hearing was held May 9`h for public input on the budget process. City Staff 4 is reaffirming the proposed 2018 overall levy of $6,850,011. The 2018 proposal represents an 5 increase of $399,226 or a 6.19% increase from 2017. 6 7 Ms. Rueckert reviewed the 2018 Budget Calendar and components of the 2018 proposed 8 preliminary levy and the standard parameters for preparing the General Fund Budget and Levy. 9 The General Fund Budget and Levy Cost drivers were reviewed with specific descriptions. They 10 include: 11 12 - Personnel costs — 71 % of expenditures, overall costs are down $220,202 or 4.34 %. 13 - Contracted services — 8% of expenditures, overall decrease of $31,135 14 - Other Insurance costs — 3.5% of expenditures, overall costs lower by $18,858 or 7.38% 15 - Pass through costs — 5.5% of expenditures, up $11,905 or 3.37% in turn certain revenues 16 increase. 17 - Remaining budget line items — 12% of expenditures or $855,216, net cost up $1,442 or 18 0.17 %. 19 - Transfer of Liquor operating profits reduced by $50,000 in 2018 to maintain sufficient 20 working capital within the Liquor fund. 21 - Reduction in Charges for Services of $653,772 substantially represented by the 22 termination of the police services contract with the City of Falcon Heights. 23 - For the 2017 levy process the future costs associated with the officer involved shooting 24 were not included into the levy. 25 26 Ms. Rueckert reviewed the HRA Budget and Levy siting the cost driver is substantially due to 27 personnel costs. Therefore, the proposed Levy increase for the HRA is 3.00% or $4,734. The 28 2018 Debt Related Levies are proposed to decrease by $7,549 over the 2017 combined levies. 29 Graphs showing the overall levy by Fund Type, the 2018 General Fund Revenues, and the 2018 30 General Fund Expenditures were provided for Council review. 31 32 Ms. Rueckert reviewed the Issuance of 2017A G.O. Bonds and Issuance of Debt/Levy Impact 33 along with the Impact of Debt Levy Relief and summary of the 2018 budget. Ms. Rueckert stated 34 the General Fund Levy Supports the following City Services: Administration, Police, Fire, 35 Public Works, Finance, and Parks. In 2017 the average homeowner paid $948.84 for a home 36 valued at $260,000 which included $79.07 per month for City Services. The City has received 37 $31,663,880 in grants and donations since 1999. This calculates to $3,532 per resident based on 38 population of 8,965. 39 40 Ms. Rueckert stated the final presentation of the 2018 Budget and Property Tax Levy is 41 scheduled for the December 12, 2017 Council Meeting. At that meeting, Staff will present a 42 recap of the 2018 Budget and the impact of the 2018 Property Tax Levy. 43 44 Councilmember Stille noted not included is the risk evaluation of the loss of contract with Falcon 45 Heights. 46