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M E M O R A N D U M <br />DATE: August 27, 2019 <br />TO: Mark Casey, City Manager <br />FROM: Shelly Rueckert, Finance Director <br />ITEM: 2020 Preliminary Levy / General Fund Budget <br />At the June 3rd work session, the City Council and staff reviewed the proposed 2020 Debt Levy. <br />The Debt Levy is comprised of the Road Improvement Debt, the Lease Revenue Bonds and the <br />Tax Abatement levies. Also on the August 5th work session the City Council reviewed the 2020 <br />General Fund Budget/Levy, and proposed adjustments to the Housing Redevelopment Authority <br />(HRA) levy , Capital Improvement and Building Improvement Fund levies. <br />Staff’s is proposing a 2020 overall levy of $7,609,458. The 2020 proposal represents an increase <br />of $298,005 or a 4.08% increase from 2019. <br />The components of the 2020 proposed preliminary levy are as follows: <br />The standard parameters for preparing 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 />•Expenses budgeted at amounts that will maintain present level of City services. <br />•Liquor transfers are based on current operating results. <br />The General Fund Budget and Levy cost drivers are as follows <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 5.71% increase in the General <br />Fund Levy - see below: <br />2019 $ Change 2020 % Change <br />General Fund 4,324,113$ 246,900 4,571,013$ 5.71% <br />HRA 170,254 14,810 185,064 8.70% <br />CIP 258,200 25,000 283,200 9.68% <br />Road Improvement Debt 1,914,886 12,318 1,927,204 0.64% <br />Lease Revenue Bonds 343,347 (1,745) 341,602 -0.51% <br />Tax Abatement 222,653 (4,278) 218,375 -1.92% <br />Building Improvement Fund 78,000 5,000 83,000 6.41% <br />Total 7,311,453$ 298,005$ 7,609,458$ 4.08% <br />23