09-24-2018 Council Packet - Laserfiche WebLink

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AGENDA ITEM Item No.: Date: September 24, 2018 Item Description: Adoption of 2019 Preliminary General Fund Budget Presenter: Ron Olson Agenda Finance Director Finance Director Section: Report 1. Purpose. The purpose of this agenda item is adopt the 2019 Preliminary General Fund Budget. 2. Background. Staff has been working on the 2019 General Fund budget since early June. As part of the budget process, there have also been three Council work sessions where the City Council has had the opportunity to provide input and direction to staff. The preliminary budget that is being presented for approval tonight includes expenditures totaling $8,576,370; an increase in expenditures of $382,970 (4.7%). This increase is the result of a $95,000 increase in Personal Services, a $217,619 increase in Professional Services, and a $100,000 increase in Contingency. The increase in Personal Services is due to step increases and a COLA increase of 2.5% for union and non-union employees. The increase would have been larger but the wages for the IT Technician have been moved to the IT Internal Service Fund. The increase for Professional Services is due to some actual increases for Legal ($17,000), Engineering ($5,000) and Pass-through charges ($30,000). The majority of the increase is due to a shift in coding as a result of the creation of the IT Fund. IT related expenditures that were previously coded to wages (IT Tech), Other Expenses, and supplies and maintenance are now coded to a new line item (IT Services) in the Professional Services category. The increase to Contingencies is due to reestablishing the line item at a $20,000 level and the removal of the proposed Code Enforcement Officer from the Police and Building and Zoning Departments. At a previous work session there was discussion by the Council about whether Code enforcement was the proper place to add an additional employ, or if adding an employee to another department would be more effective. The funding was moved to the Contingency line item so it will be available in the budget when Council makes a decision on staffing. If no positions are added, the amount will not be spent. For revenues the General Fund budget also totals $8,576,370 and is increasing by $382,969. The largest increase in revenues is the Administrative Charges for Service line $165,170. This revenue is from charges to other funds, mainly Water, Sewer, Storm Sewer for costs incurred by the General Fund in support of the other funds. Other increases are Property Taxes ($34,950), Building Permits ($29,000), Police State Aid ($20,000), Police Service Contracts ($62,000), and Interest on Investments ($41,000). There are other smaller increases for a total revenue increase of $382,970. 3. Staff Recommendation. Staff Recommends approval of the 2019 Preliminary General Fund Budget. COUNCIL ACTION REQUESTED A motion to adopt the attached resolution adopting the 2019 Preliminary General Fund Budget. Exhibits Exhibit A. 2019 Revenues Exhibit B. 2019 Expenditures Exhibit C. Resolution Prepared By: Jilin` Reviewed By: qY Approved By: -T)2