08-28-1995 Council Packet - Laserfiche WebLink

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The General Fund budget continues to be funded without an increase in the tax Ie\7. The proposed General Fund expenditures are $3,347,755. This is an increase of $102,740 or 3.17^ over the 1995 expenditure amount. This expenditure level reflects several expendimre increases not included in the preliminary budget figures. They are related to two contracted services costing more than initially estimated for 1996, and several contractual police officer pay step adjustments that were not included in the preliminary budget figures. An explanation of these expenditure increases is as follows; Prosecution Services; The prosecution services cost is proposed to increase from $31,8^3 to $35,880. This is an increase of $4,057 or 12.7%. This increa.se is due to a combination of increased costs and the reallocation of the costs among the participating cities. Orono s share of the total costs has increased due to the prosecution work load of Orono versus the work load of the other cities. Although this is a significant one year increase the cost is still very reasonable. This is the first significant increase since the ciiy^^*gan to receive prosecution services from the City of Minnetonka in 1992 at a cost of $30,'lint Mound Fire Service: The Mound fire service costs have increased from $65,896 to $70,706 an increase of $4,810 or 7.3%. This increase is due mainly to an increase in funding for major vehicle repair. Police Pay Steps; A final review of police salaries identified several police officer pay step increases that were not included in the preliminary budget figures. The amount of these step increases totals approximately $8,800. 2.85% Pay Adjustment; The preliminary budget proposed a 2.75% pay increase for city staff. A police officer contract settlement (now approved by the police officers) includes a 2.85% pay increase. The 2.85% pay increase has been calculated into the budget for all staff. This has resulted in a total increase in expendimres of approximately $2.^^mil General Fund Revenues The General Fund Revenues were also reviewed to ensure they were accurately, yet conservatively, projected. This review resulted in increases in the building related revenues of approximately $15,000 and an increase in interest revenue of approximately $4,000. General Fund Reserves The General Fund Reserv'es have been redesignated as follows; 1. Designation for HACA reduction $100,000 2. Designations for potential police contract revenue reduction $100,0(X) 3. Designated for working capital $925,000 Permanent Improvement Revolving Fund Reserves Through transfers from the General Fund Reserves and a $40,000 lax levy, the proposed 1996 PIR Fund Reserves are as follows: 1. 2 3. 4. Infrastructure (road and bridge projects): $267,361 Infrastructure (storm drainage projects): $90,000 Stormwater management plan: $50,000 Emercenev contingency: $325,000