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2. Since the expenditure budget was presented in July, the $40,000 that was included for <br />re -writing the Zoning and Subdivision Code has been removed. <br />3. Another significant change a decision to move the LMCD annual charges from the <br />Mayor Council department in the General Fund to the Stormwater Fund. <br />4. As this memo was being written, we received updated information on the health <br />insurance rates for next year. The budget includes an additional $50.00 per employee <br />with family coverage. Due to a one year exemption from an ACA premium tax, it <br />now looks like the increase will be closer to $1.00. These numbers will be updated <br />when we receive the final number from Health Partners. <br />Underfunded <br />1) As the Council is aware, long term funding for roads needs to be secured. <br />2) Long -Term Funding of the CIP has not been identified. As the tax levy needed for <br />debt service decreases in future years, there is an opportunity to shift these taxes to <br />roads and equipment and increase funding to the needs without impacting the tax <br />levy. <br />Issues for discussion: <br />Tax Levy <br />Staff is requesting guidance on the amount that the Council is comfortable with for a tax levy <br />increase. There is a $198,000 levy increase in the sample resolution that is attached. $36,550 for <br />the General Fund and the remaining $161,450 has been added to the Pavement Management <br />Levy. <br />Wages <br />Staff is requesting guidance on the amount of the annual wage increase, if any that the Council <br />would like to see included in the draft budget for non-union wages. The total increase identified <br />above includes a 2.5% increase. <br />Create Internal Service Fund for IT <br />At the July work session the Council was supportive of creating an IT internal service fund. The <br />draft budget has been amended to incorporate the creation of an IT Services Fund. <br />Increase the Administrative Fee charged to the Enterprise Funds. <br />Staff has been reviewing the Administrative Fee charge to the Enterprise Funds. Currently the <br />Sewer Fund pays $32,000 to the General Fund for Administrative overhead. The Water and <br />Storm Water funds pay $16,000 each with the Cable Fund and Recycling Fund paying $2,500. <br />Staff is recommending increasing the Administrative Fees charged to the Water, Sewer, and <br />Stormwater funds to cover a total of 30% of the expenditures of the Adinistration and Finance <br />Departments. The budget has been increased to reflect this Change. <br />2019 Budget — Page 3 <br />