09-28-2020 Council Packet - Laserfiche WebLink

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AGENDA ITEM Prepared By: RJO Reviewed By: DJR Approved By: DJR 1. Purpose. The purpose of this agenda item is adopt the 2021 Preliminary General Fund Budget. 2. Background. Staff has been working on the 2021 General Fund budget since early May. As part of the budget process, there have also been four Council work sessions where the City Council has had the opportunity to provide input and direction to staff. There are two preliminary budgets being presented for approval tonight. The first includes expenditures totaling $9,260,500; an increase in expenditures of $117,300 (1.3%) over the 2020 budget. The significant increases are the following. Wages and Benefits (Personal Services) are increasing $167,400 (2.9%). This increase is broken down as follows: Non-Union Wages 3% $27,900 Unions Police 3%, Negotiating Local 12 & 49 $122,000 Step Increases Contracted and Non-Union $37,900 Janitor/Park Position Not in 2020 budget $17,700 Elections Off Year ($38,100) Professional Services Assessing, LOGIS, Paychex $51,700 Supplies and Maintenance Park Maintenance $17,500 Other Expenses TZD Grant Exp ($124,300) Capital Outlay Police Squads/Equipment $5,000 Total $117,300 More detailed information about the numbers in the table can be found in the budget attachment. For revenues the General Fund budget also totals $9,260,500 and is increasing by $117,300. The largest increase in revenues is the property tax line at $247,140. As significant decrease in revenues relates to the grant funds for the TZD grant. This revenue decrease is offset be a decrease in expenditures. The remaining revenues have small individual variations, but as a whole are flat when compared to last year. At this point, the City has not experienced significant reductions in revenue that other cities have experience related to Covid 19. However, this could become an issue if there is a resurgence of the virus that impacts the economy. The second budget option being presented is identical to the first except for two lines. In the expenditure budget, the line for transfers has been increased by $125,000. In the revenue budget, the line for property taxes has also been increased by $125,000. The additional $125,000 would be earmarked for infrastructure funding. The City will hold a public hearing at the council meeting scheduled for December 14th, 2020 at 6:00 pm. This allows public input on the budget and levy prior to its adoption at that meeting. 3. Staff Recommendation. Staff Recommends approval of one of the attached resolutions adopting the Item No.: 11 Date: September 28, 2020 Item Description: Adopt 2021 Preliminary General Fund Budget Presenter: Ron Olson Finance Director Agenda Section: Finance Director Report