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2016 Budget – Page 2 <br />2) Revenues for development (building permits, variances, subdivisions) will increase <br />for 2016. They are currently on track to exceed budgeted levels in 2015. With the <br />development of Lakeview and the completion of Stonebay revenues should increase <br />significantly for the next two to three years. As these developments are completed, <br />these revenues will decline in future years. Staff is working on an estimate for this <br />increase. <br /> <br />3) Interest earnings continue to be constrained by historically low interest rates. There is <br />some talk that the Federal Reserve will increase rates beginning this fall. However, <br />with an election year on the horizon, is may be unlikely that they will increase <br />significantly. <br /> <br />4) If there is no increase in the police budget, revenues related to Minnetonka Beach and <br />Spring Park increase $16,300. This increase is due only to the changing factors in the <br />allocation formula. The actual increase/decrease will depend on the final police <br />budget. The Mound service contract includes an inflator of 2.5% and will increase by <br />$40,580 for 2016. <br /> <br />5) Court Fine revenue finished 2014 under budget at $113,000. Through May it is <br />currently estimated to be at $110,000. This revenue line item should be reduced by <br />$20,000 from the 2015 budgeted amount of $130,000. <br /> <br />6) Administrative Fines – This line has not been budgeted previously. Based on 2014 <br />actual and 2015 year to date, this can be budgeted at $15,000. These fines relate to <br />overweight vehicle enforcement by the police department during road restrictions. <br /> <br />7) Drug Task Force revenue should be removed from the budget. Due to restrictions <br />additional restriction on the distribution of seized property, we have not been <br />receiving this revenue. We do still receive federal distributions, but do to accounting <br />requirements this revenue is recorded in the PIR fund. This is a reduction of $30,000. <br /> <br />8) Golf Course revenue can be increased by $10,000 to $130,000 for 2016. <br /> <br />The revenue sources identified above represent 93% of the General Fund revenue budget. The <br />above changes represent a revenue increase of $31,880. The remaining revenue sources will <br />likely be flat and are unlikely to significantly impact the overall revenue budget. <br /> <br />Expenditures: <br /> <br />1. January 1st, 2014 marked the start of a three year labor contract with the Patrol and <br />Sergeant unions. For 2016 the contract includes a 2.75% wage increase. The <br />increase represents an annual expenditure increase of $35,000. Step increases and <br />longevity pay add an additional $35,000. <br /> <br />2. The labor contracts also include an increase in insurance contribution equal to 50% of <br />the family premium rate hike. For 2016 the monthly family premium increase is