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TO: Mayor McMillan and Council Members <br />FROM: Ron Olson, Finance Director <br />DATE: July 27, 2014 <br />SUBJECT: 2015 Budget <br />Attachments: <br />A. Revenues <br />B. Expenditures <br />C. Wage – COLA History <br />D. Tax Levy Summaries <br />E. Major Budget Impacts <br />F. Street Funding Memo <br />G. Insurance Increase - Police Chief <br />H. June Budget Memo <br />I. Tax Capacity Rates <br />The draft 2016 budget reflects an effort to address current operating needs while keeping any tax levy <br />increases to a minimum. Inflation continues to increase at the relatively low annual rate, but has <br />increased by 10.1% since 2010. During the same period, the tax levy has only increased by 2.3%. As <br />presented, the draft 2016 budget reflects a 1.7% increase in expenditures. <br />Revenues <br />The General Fund revenue budget as presented is a 1.7% ($128,700) increase from the 2015 budget. <br />Major revenue changes will be highlighted in the following paragraph. A summary of the changes can <br />be found in the revenue portion of the Major Budget Impacts document (attachment E). <br />The Permits category is increasing by $55,250 on the strength of building permit revenue. This <br />increase is based on current year actual numbers and continues the recent trend of increasing permit <br />revenue. General Government Service Charges is increasing by $29,150. This is the result of <br />revenues related to variances and plan check fees and reflects the rise in construction activity. Public <br />Safety Service Charges are increasing by $67,650 mainly as the result of an increase in contracted <br />police service charges. The Mound service contract includes a price inflator of 2.5% ($40,580) for <br />2016. Spring Park and Minnetonka Beach will also see increase based on the current 3.27% increase in <br />the Police Budget and changes in the allocation formula factors. Based on current year results, Golf <br />Course revenue is being increased by $18,000. Fine revenue is being reduced a total of $55,000. <br />$30,000 of this reduction is for drug task force distributions that are being deposited in the PIR fund for <br />accounting reasons. The detail for all revenue lines can be found in attachment A. <br />Expenditures <br />Item 02