06-22-2015 Council Work Session Packet

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Attachment A – Page 2 TO: Management Team FROM: Ron Olson, Finance Director DATE: June 1, 2015 SUBJECT: 2016 Budget It is time to start preparing the 2016 budget. Please complete the attached budget worksheet and return in to the Finance Department by 6/19/15. Wage and benefit information has been entered in the column labeled “2016 Department Request.” The wage information is based on current employees and includes scheduled step increases. The amounts also include a COLA increase of 2.75% and an insurance contribution increase of $90. For non-union employees these increases still require the Council’s approval. The budget worksheet contains actual 2014 expenditure, the 2015 budget, and the 2015 year to date amounts. If you require more historical information, please contact Pete or me and we can provide you with it. We can also provide you with the detailed expenditures of any accounts that you need to see. If you have MiView installed on your computer, you can access over four years of history from your desk. For the past few years, the Council directed staff to produce a budget that would keep the tax levy at the same level as the previous year. At the May 26th work session, the Council indicated that they may be willing to increase the tax levy if it would not increase the overall tax rate. However, needed funding for roads far exceeds the Council’s stated willingness to increase taxes. Please prepare your budgets with the expectation that there will very limited additional tax levy available for regular operating expenditures. There are some additional forms included in your budget packet. The first one is the 2016 Orono Operating Budget Decision form. This form should be used to identify any major operating changes that you are requesting for the 2016 budget. Examples would include: adding or reducing staffing levels; sending an employee to training that is above and beyond the regularly budgeted training; or any other expenditure that is not regularly occurring. Another form is the 2016 Budget – Equipment Request form. This form is to be used to identify all major equipment purchases. Examples would include: purchasing vehicles, computers, computer applications, and building renovations, infrastructure. These items should already be included in the CIP. This form should be completed for all current year CIP items. The other forms included are the “what if” forms. These forms are used to identify items that would be added to or deleted from the budget if the available funds change significantly from the 2016 budget. For example, what if the Council decides to reduce spending by 3%; what would you cut from your budget. Or on the other hand, if there were funding available, what would you add to the budget. Copies of all budget forms can be found on drive W: Data\Finance\Budget\2016. If you have any questions please contact the Finance Department.