CC PACKET 09082009 - Laserfiche WebLink

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W. MEMORANDUM DATE: August 27, 2009 TO: Mayor and Councilmembers FROM: Mike Morrison, City Manager Roger Larson, Finance Director ITEM: PROPOSED 2010 OPERATING BUDGET Overview: Staff has finalized a proposed 2010 Operating Budget totaling $5,283,400. This represents a $58,700 dollar increase or 1.12% from 2009. The budget was prepared using the following criteria: 1) 0% increase in salaries for 2010. A. Three - Union contracts expire 12/31/09. 2) Health insurance premiums: A. Employer health insurance contribution for family coverage is increased by $100.00. a. The employee increase is projected to be $117.00. B. 2010 Estimated Percentage Employer/Employee a. City pays 53.7% b. Employee Pays 46.3% C. 2009 Estimate — Employer/Employee a. City pays — 553% b. Employee pays 44.7% D. Metro Cities Average: a. Employer — 62.1 % b. Employee — 37.9% As directed by the City Council, the 2010 Budget was restructured to adjust the budgeted expenditures closer to actual costs. The proposed 2010 operating budget includes a general fund levy of $2,945,511 which is the same as the 2009 levy representing a 0% increase. The 2010 levy limit has been set by the Minnesota Department of Revenue at $2,982,551 which represents a $37,040 increase from the 2009 levy limit. To determine the 2010 levy limit, their calculation included taking the 2009 levy limit and adjusting it for inflation, increased household growth and new commercial/industrial taxable market value. The proposed 2010 capital equipment budget totals $313,200 and moving forward will be the amount of the annual funding available for capital equipment purchases. This budget was reduced a total of $86,800 from previous years by eliminating or deferring purchases to future years. The transfer from Liquor Operations will continue to be $400,000 with $291,800 going to the General Fund and $108,200 dedicated for capital equipment funding.