12-11-2017 Council Packet - Laserfiche WebLink

Home Browse Search

AGENDA ITEM The increase of $132,275 (3.12%) in the Police Department is primarily the result wage increases due to step/longevity increases and a 2.5% COLA increase in officer wages. Other notable increases are $27,034 (9.1 %) in Administration. This increase is mainly due to the hiring of a full time Administrator. Elections is increasing by $22,392 because 2018 is an election year. The Street Department is increasing $26,068 (5.22%) with the increase split between Personal Services and Supplies & Maintenance. The Parks budget is increasing $56,667 (48.65%) mainly due to the hiring the Golf Course/Parks Supervisor. Some department budgets are decreasing. The Planning Department is decreasing by $22,741 (2.98%). Some of the decrease is due to staffing changes, a majority of the decrease is due to the reduction of contracted services. The other significant decrease is in the Special Projects and Contingencies Department. The line item for contingencies ($40,990) has been removed from the budget. The General Fund Summary and Line Item expenditure budgets are included with this memo. General Fund Revenues The primary revenue source for the General Fund, accounting for 53.1% of the revenue budget, is the property tax levy. The 2018 General Fund tax levy is $4,355,050 which is $157,810 (3.8%) higher than the 2017 General Fund levy. Total General Fund revenues are budgeted to increase by $205,540 (2.6%) in 2018. Of the revenue amounts that are increasing, the largest is an increase of $25,330 for contracted police services. Overall revenues at the Golf Course are being increased by $26,000. Detailed General Fund revenue information is included in the exhibits. Since the preliminary budget was developed, the Park Commission has shown support for removing the Dog Park Permit revenue from the General Fund to the Lurton Park Fund. It is currently included in the General Fund revenue budget. This is a change that could be made in the 2018 budget, or during the budget process for the 2019 budget. Special Revenue Funds The special revenue funds that budgets are adopted for are the Park Fund, The Drug Forfeiture Fund, and the TIF Fund. Special revenue funds by definition have a primary source of revenue that is dedicated for a specific purpose. In the Park Fund the primary revenue source is park dedication fees collected from developers. By state law, these funds must be used for parkland acquisition and development. The Drug Forfeiture Fund receives its primary funding from the Police Department's drug and alcohol enforcement activities. The funds must be used for drug and alcohol related activities. The TIF Fund is used to account for revenues related to the Orono Woods Senior Housing Development. Debt Service Levies The 2018 levy for debt service is $711,000. This levy is used to pay the debt service on the City's outstanding bonds. Enterprise Funds The Water, Sewer, Stormwater, and Recycling Funds are designed to account for the business type activities of the City. These funds do not receive any property tax revenue. As part of the 2017 fee schedule, the following rate increases are being recommended: Water 6%; Sewer 6%, Stormwater 10%. The fee schedule is also being approved tonight. It is the City's long-term goal to fully fund infrastructure improvements through utility rates and not use special assessments. Water Fund The water fund has historically been operating at a loss. Because depreciation is a non-cash expenditure, Prepared By: RIC Reviewed By: 1b)X1 Approved By: �bV