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City Council Regular Meeting Minutes August 24, 2021 Page 2 1 VI. GENERAL BUSINESS OF COUNCIL. 2 3 A. 2022 Budget Presentation. 4 5 Finance Director Shelly Rueckert reviewed at the March 9, 2021, work session, the City Council 6 and staff reviewed the proposed 2022 Debt Levy. The Debt Levy provides funding for 2022 debt 7 service payments for the Road Improvement debt, Lease Revenue debt (city buildings) and the 8 Tax Abatement debt (parks and sidewalks). The proposed 2022 Debt Levy was approved at the 9 July 13th City Council Meeting. 10 11 At the June 8th work session, Staff provided the City Council with an early projection regarding 12 the overall levy and General Fund Budget. Staff presented an updated overall levy scenario and a 13 detailed 2022 General Fund budget at the August 10th Council work session. The City Council 14 also reviewed the proposed adjustments to the Housing Redevelopment Authority (HRA) levy, 15 Capital Improvement and Building Improvement Fund levies. The Levy proposed below reflects 16 the work session discussions. 17 18 The proposed 2022 overall levy is $8,243,092 which represents an increase of $377,497 or a 19 4.80% increase compared to the 2021 overall levy. 20 21 Ms. Rueckert reviewed the 2022 Budget Calendar in detail. 22 23 The standard parameters used for preparing the General Fund Budget and Levy include: 24 • City revenues budgeted at current run rates for sources that are subject to trends and 25 conservative baseline estimates for re-occurring aids and charges for services. 26 • Expenses budgeted at amounts that will maintain present level of City services. 27 • Liquor transfers to the General Fund are based on liquor operating results. 28 29 Diagrams showing the Path to the 2022 Tax Levy for the Operating Funds, the Capital 30 Improvements, and Debt Levy were provided for Council review. 31 32 A chart showing the General Fund and Levy for 2021 and 2022 and the amount of increase was 33 shown. The overall levy by fund type consists of 64% General/HRA, 30% Debt Service and 6% 34 Capital & Building Improvements. 35 36 The 2022 General Fund Revenues include 65% Tax Levy, 13% Inter-government Revenue, 12% 37 Contracts, 5% Licenses, Permits & Fines, 3% Transfers and 2% Miscellaneous. 38 39 The 2022 General Fund Expenditures include 47% Police, 17% Fire, 11% Public Works, 10% 40 Administration, 4% Parks, 4% Finance and 7% All Other. 41 42 The 2022 Budget Cost Drivers are Personnel costs: 70.5% of expenditures, overall costs up 43 $229,900 or 4.24%. Union wage increases in 2022 estimated settlement amounts plus a risk 44 allowance as union negotiations are in the beginning stages. Union’s scale steps and longevity 45 steps are also factored into costs. 3.2% Health Insurance premium decrease shared 50% 46 2