CC WORKSESSION 04292008 - Laserfiche WebLink

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MEMORANDUM DATE: April 14, 2008 TO: Mayor and Councilmembers FROM: Mike Momson, City Manager Roger Larson, Finance Director ITEM: 2009 BUDGET DISCUSSION Staff has started the process of constructing the 2009 operating budget. The budget will be impacted by the 3.5% salary increase negotiated with the three unions, a $50.00 increase per month in the employer health insurance contribution and escalation of energy and fuel prices. At this time, the estimated increase in the 2009 budget is projected between 5% - 9 %. In addition, the Debt Levy will increase approximately $145,000 with the Silver Lake Road Project that will be approved on May 13th. The total impact is estimated at $175,000; however, $30,000 will be offset by the pay -off of the three bonds. For tonight's work session, staff has compiled a list of items for Council's review and consideration. Roger and I will discuss the items listed below and those listed on Page #2 of this memo. General Oaeratine Budeet Item #1 ✓ Annual Ramsey County recycling payment ($5,000.00). • Not enough activity in Recycling Fund to support payment. • Funding considerations. Item #2 ✓ New accounting standards SAS o Prior to 2007 ■ Expenditures could be offset by Revenue. • Current Standards ■ Expenditures and Revenues must be separate line items. • Activity is in the General Fund (See Attachment A) ■ At some point this could make the General Fund look over budget. • Considerations: ■ Do nothing knowing that all expenditures are offset by revenue. ■ Project and add revenue and expenditure line items for this activity (Example — add $25,000 revenue line item and $25,000 expense line item). Net affect on budget and levy is zero. ■ Takes stress off of General Fund bottom line. Item #3 ✓ GIS on -going costs will become part of general operating budget. • Annual on -going costs = $1,500 • Increase — part of Engineering /Planning/Zoning budget • Small current annual budget $3,100 (adding $1,500 = 48.4% increase)