09-27-2021 Council Packet - Laserfiche WebLink

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AGENDA ITEM Prepared By: RJO Reviewed By: A. Carlson Approved By: 1. Purpose. The purpose of this agenda item is adopt the 2022 Preliminary General Fund Budget. 2. Background. Staff has been working on the 2022 General Fund budget since 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. 3. General Fund Expenditure Budget. The preliminary expenditure budget totals first includes expenditures totaling $10,181,263; an increase in expenditures of $920,763 over the 2021 budget. A significant portion of the increase is being funded by increased revenues like the new service contract with Spring Park, a grant to cover the Toward Zero Deaths expenses in police special services, increased Permit Revenue and increases in the Police Service contracts. As a result of the increase in non-tax revenues, the tax levy supporting the General Fund is increases by $551,890. The significant increases are the following: Non-Union Wages 3% $29,500 Unions Police 3%, Negotiating Local 12 & 49 $106,500 Step Increases Contracted and Non-Union $25,000 Benefits Health Insurance * $23,700 Park Maintenance Position Not in 2021 budget $38,000 Elections Election Year $35,800 Spring Park Service Contract General Fund Only $100,000 Professional Services Assessing, LOGIS, Paychex, IT Services, MnSpect** $300,000 Toward Zero Deaths – Lead Park Maintenance $120,000 Golf Course Increased Staffing $67,000 Other $75,263 Total $920,763 More detailed information about the numbers in the table can be found in the budget attachment. 4. General Fund Revenues. For revenues the General Fund budget also totals $10,330,530 and currently exceeds the expenditure budget by $148,500. Some of this excess, may be needed to cover expenditures, like health insurance, that may be higher than currently budgeted. If the funds are not needed for expenditures, the council could use the amounts for other needs, or consider reducing the levy prior to the adoption of the final levy in December. 5. Next Steps. The City will hold a public hearing at the council meeting scheduled for December 6th, 2020 at 6:00 pm. This allows public input on the final budget and levy prior to its adoption at that meeting. 6. Staff Recommendation. Staff recommends approval the attached resolutions adopting the 2022 Preliminary General Fund Budget. COUNCIL ACTION REQUESTED A motion to adopt one the attached resolution adopting the 2022 Preliminary General Fund Budget. Exhibits A. Budget Attachment B. Resolution Item No.: 12 Date: September 27, 2021 Item Description: Adopt 2022 Preliminary General Fund Budget Presenter: Ron Olson Finance Director Agenda Section: Finance Director Report