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M E M O R A N D U M DATE: December 8, 2020 TO: Charlie Yunker, Interim City Manager FROM: Shelly Rueckert, Finance Director ITEM: 2021 Preliminary Levy / General Fund Budget At the September 8th City Council meeting, the city staff presented the proposed 2021 general fund operating budget and the 2021 overall levy. Staff’s has affirmed the proposed 2021 overall levy of $7,865,595. The 2021 proposal represents an increase of $256,137 or a 3.37% increase from 2020. The components of the 2021 proposed preliminary levy are as follows: The standard parameters for preparing the General Fund Budget and Levy include: •City revenues budgeted using current run rates for sources that are subject to trends and conservative baseline estimates for re-occurring aids and charges for services. •Expenses budgeted at amounts that will maintain present level of City services. •Liquor transfer to the general Fund are based on operating results. 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 3.37% increase in the General Fund Levy The General Fund Budget and Levy cost drivers are as follows: Expenditures: •Personnel costs – 70.6% of expenditures, costs increased by $167,990 or 3.2% (wages representing 2.2% and health insurance 1%). •The Unions wage increases at the 2021 estimated contracts amounts. 2020 $ Change 2021 % Change General Fund 4,571,013$ 183,637 4,754,650$ 4.02% HRA Fund 185,064 12,500 197,564 6.75% CIP Fund 283,200 - 283,200 0.00% Debt Service Funds 2,487,181 - 2,487,181 0.00% Infrastructure Fund - 60,000 60,000 na Building Improvement Fund 83,000 - 83,000 0.00% Total 7,609,458$ 256,137$ 7,865,595$ 3.37% 17