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Total personnel costs increased by $228,449 from 2018 to 2019. Here is the breakdown: Add Recreation Programmer 65,520 Add Sr. Engineering Technician 95,420 Council wage increase 6,030 Step increases, changes to temp/seasonal and overtime, increase in Communications Coord. hours, corrections to prior year worksheet 54,995 2.5% COLA 36,630 Projected benefit decreases (30,280) Work comp/Pension costs 134 228,449 General Fund The General Fund is the primary operating fund of the City and its main source of revenue is property taxes. The 2019 revenue budget is projected to increase by $390,959 over 2018 to $5,330,490. This increase is mainly due to the proposed 5% tax levy increase ($189,348) and permit fee revenues (building, mechanical, electrical and plan check fees), which are expected to increase by $216,570. Expenditures are projected to increase by $302,834 over 2018 to $5,479,590. Besides personnel costs, the increase is mainly due to public safety costs and street maintenance. The police contract is expected to rise by 4.1%, or $48,475 for 2019. One of the reasons for this is the addition of another investigator. Ramsey County has plans to add another investigator in 2020. The fire costs are expected to rise by 5.5%, or $29,680 for 2019. Earlier this year, Council expressed an interest in accomplishing more patching and overlay work during 2019 to help lengthen the life of the City’s roads. An additional $100,000 was added to the 2019 budget to support this endeavor. Special Revenue Funds The City has four special revenue funds with activity in 2019 that finance various activities with restricted revenues. The City Council approved $120,000 in tax revenues for the EDA as part of the 2018 budget (via a transfer from the General Fund). The proposal is to keep this amount the same for the 2019 budget. There is $40,000 budgeted in the Cable TV Fund to start the process of updating the audio/video equipment. It is projected that an additional $40,000 will be required in 2020. The two Tax Increment Financing Funds are both projected to have positive cash flows in 2019. Capital Project Funds The Council has previously reviewed the 2019-2023 CIP. Much of this information is reflected in the capital funds of the City. The Equipment and Building Replacement Fund currently has a deficit balance. The plan is to transfer approximately $400,000 from the General Fund in 2018 which would bring the General Fund fund balance down to a 50% level based on the 12/31/17 audit and help eliminate the deficit. The Public Safety Capital Fund, which accounts for Fire Department capital items, also has a deficit balance. The City is currently transferring $50,000 into this fund from the General Fund each year to help cover the expenditures. Staff is not proposing to increase this amount for 2019 but it may need to be increased for 2020.