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<br />
<br /> M E M O R A N D U M
<br />
<br />
<br />DATE: September 14, 2021
<br />
<br />TO: Mayor Stille, City Council Members, City Manager Yunker
<br />
<br />FROM: Shelly Rueckert, Finance Director
<br />
<br />ITEM: 2022 Preliminary Levy / General Fund Budget
<br />
<br />At the August 24th City council meeting, the city staff presented the proposed 2022 general fund
<br />operating budget and the 2022 overall levy.
<br />
<br />Staff’s has affirmed the proposed 2022 overall levy is $8,243,092, which represents an increase
<br />of $377,497 or a 4.8% increase compared to the 2021 overall levy.
<br />
<br />
<br />
<br />
<br />The standard parameters used for preparing the General Fund Budget and Levy include:
<br />
<br />• City revenues budgeted at 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 to the General Fund are based on liquor operating results.
<br />
<br />The General Fund Budget and Levy details:
<br />
<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 4.8% increase in the Overall
<br />Levy – and the 6.85% increase in the General Fund Levy see below:
<br />
<br /> General Fund Expenditures:
<br />
<br />• Personnel costs – 70.5% of expenditures, costs increased by $229,900 or 4.24%
<br />• The 2022 wage increases reflect the estimated Union contracts settlements, at a
<br />cost of $186,855 or 3.91%. Please note that the 2021 Budget anticipated open
<br />positions being filled during 2021 versus 1/1/2021. Therefore, a portion of the
<br />2021 $ Change 2022 % Change
<br />General Fund 4,754,650$ 325,647 5,080,297$ 6.85%
<br />HRA Fund 197,564 11,850 209,414 6.00%
<br />CIP Fund 283,200 25,000 308,200 8.83%
<br />Debt Service Funds 2,487,181 - 2,487,181 0.00%
<br />Infrastructure Fund 60,000 5,000 65,000 8.33%
<br />Building Improvement Fund 83,000 5,000 88,000 6.02%
<br />Park Improvement Fund - 5,000 5,000 NA
<br />Total 7,865,595$ 377,497$ 8,243,092$ 4.80%
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