CC PACKET 08222023 - Laserfiche WebLink

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The standard parameters used for preparing the General Fund Budget and Levy include: • City revenues budgeted at 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 transfers to the General Fund based on liquor operating results. The General Fund Budget and Levy details: 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 5.80% increase in the Overall Levy - see below: General Fund Expenditures: • Personnel costs – 70.0% of expenditures, overall budgeted costs increased by $353,945 or 5.71% • The 2024 base wage increase is based on the city’s Unions accepting a 3.5% COLA. Also, staff retirements, pending retirements and resignations has mitigated the impact of COLA and other wage or step adjustments. The net cost impact on reoccurring wage base is $64,170. Other factors creating the additional $289,219 of costs are as follows: o Wages and benefits of $249,845 were budgeted in 2023 as placeholders for two fulltime fire fighters, in anticipation of a SAFER grant. The SAFER grant was not awarded and these positions were not filled. The two firefighter positions were being phased into the levy beginning in 2022. The plan at the time was if the SAFER grant was not awarded there would be the levy capacity available to mitigate the levy impact of adding a day time firefighter/Assistant Fire Chief (AFC) position. The levy capacity available to support the AFC position in 2024 is $117,194 and the budgeted cost of the AFC position is $132,651, assuming a 1/1/2024 start date. This results in a net impact of $15,194 in 2024. o The Police department budget includes restoring the Lieutenant position and adding a VCET officer. These additions are scheduled to occur at mid-year. The budget impact is $154,680. o The Police introduced a Cadet program in 2023. The budget impact of the Cadet program is projected to be $33,581 in 2024. o The Police department is anticipated to have two police officers retire in 2024. The department will also need to fill two patrol positions to replace the existing officers filling the new VCET and Lieutenant positions. Therefore, there will be four new officers to be trained in 2024. The training costs have been budgeted separately from regular wages as year to year changes will vary