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Page 1 of 2 <br /> <br /> <br />DATE: June 20, 2016 <br /> <br />TO: Honorable Mayor and City Councilmembers <br /> <br />FROM: Sue Iverson, Interim City Administrator/Director of Finance and Administrative <br />Services <br /> <br />SUBJECT: 2017 Preliminary Budget Discussion <br /> <br /> <br />Background: <br /> <br />City staff will begin the process of developing a Preliminary 2017 Budget. As we progress <br />forward and take the necessary steps, staff needs general direction and guidance from the <br />Council with regard to changes for the coming year. <br /> <br />As of this time, we are not under levy limits for 2017. <br /> <br />Discussion: <br /> <br />Preliminarily, staff has identified a number of factors that will influence the 2017 Budget. Some <br />are identified as follows: <br /> <br />• Tax Levy – what is the Council’s comfort level? Last year it was a 3.5% increase. A 1% <br />levy increase translates to approximately $33,000. <br />• Overall budget changes – preferences/limits? <br />• Personnel. <br />• Salaries and Benefits. In 2016 we did a 2.75% increase. Does the council want a 3.0% <br />COLA programed for preliminary discussions? Should the benefit amount for health and <br />dental be calculated the same as for 2016? <br />• Update the five year CIP. Staff is currently in the process of updating the current plan to <br />discuss with the City Council at the July work session. Does the City Council have any <br />feedback or direction they would like to provide staff with in regard to the CIP? <br />• An area where staff sees a need is in park funding. Park dedication fees are generally <br />limited to capital improvements, not general repair and maintenance items, and there is <br />not a steady stream of income. The PIR fund is used for a lot of the larger park <br />AGENDA ITEM – 1D <br /> <br /> MEMORANDUM <br />