09-26-2022 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 2023 Preliminary General Fund Budget. 2. Background. Staff has been working on the 2023 General Fund budget since May. As part of the budget process, there have been three meetings with the Budget Committee and the draft budget was sent to the entire Council at a work session on September 12th. General Fund Expenditure Budget. The 2023 expenditure budget is $10,923,500 which is an increase of $969,904 (9.7%) over the 2022 budget. The largest increase is in Personal Services (Wages and Benefits) in the amount of $580,655. Professional services is increasing by $100,000 (6.6%) as the result of an increase of $88,000 in the fire budget and $40,000 in Assessing. Other expenses, which includes utilities and any budget lines not included in other categories, is increasing by $100,580 (20.5%). This is the result of increases in gas/electric costs, brush site disposal, and other inflationary cost increases. Transfers to other funds is increasing by $100,000 (25.0%) with the increase designated for fire equipment in the Improvement Equipment Outlay Fund. Detailed information can be found in the budget attachment. General Fund Revenues. For revenues, the General Fund budget also totals $10,923,500 and is increasing by $947,904 (9.7%). The General Fund property tax levy is increasing by $650,904 (13.0%) and covers two-thirds of the increase. The remaining third of the revenue increase is from non-tax sources. The bulk of the non-tax revenue increase is for contracted police services which are increasing by $208,100. By working cooperatively with neighboring cities, we are able to provide expanded services to our citizens while keeping the tax rate as low as possible. 3. Next Steps. Tonight’s action only approves the preliminary budget. Prior to adoption of the final budget, the City will hold a public hearing (TNT) at the council meeting scheduled for December 12th, 2022 at 6:00 pm. This allows public input on the final budget and levy prior to its adoption at that meeting. Between now and the TNT meeting, staff will be working with the Budget Committee on the 2023 Fee Schedule and Capital Improvement Plan. These items will also be approved at the meeting on December 12th. 4. Staff Recommendation. Staff recommends approval the attached resolutions adopting the 2023 Preliminary General Fund Budget. COUNCIL ACTION REQUESTED A motion to adopt Resolution No. 7292 Exhibits A. Budget Attachment B. Resolution Item No.: 7 Date: September 26, 2022 Item Description: Adopt 2023 Preliminary General Fund Budget – Resolution No. 7292 Presenter: Ron Olson Finance Director Agenda Section: Consent Agenda