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General Fund
<br />The General Fund is the primary operating fund of the City and its main source of revenue is property
<br />taxes. The 2020 revenue budget is projected to increase by $92,300 over 2019 to $4,896,720. This
<br />increase is mainly due to the proposed tax levy increase which increases the General Fund revenue
<br />by $146,920.
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<br />Expenditures are projected to increase by $26,920 over 2019 to $5,018,310. Besides personnel costs,
<br />the increase is mainly due to public safety costs. The police contract is expected to rise by 7.7%, or
<br />$95,870 for 2020. This is due to the following: addition of another investigator ($18,000),
<br />investigator squad ($5,700), increase in the County garage rate ($2,800), body worn camera
<br />equipment ($16,000), additional personnel for body worn camera program ($8,180), wifi and office
<br />space ($4,500) and COLA and PERA rate increases. The fire costs are expected to rise by 8.2%, or
<br />$47,310 for 2020. This increase is partially due to an increase in evening/weekend shifts ($7,000)
<br />in preparation for staffing a third station; an increase in fire run compensation ($1,900) based on
<br />recent trends; and an increase in training costs ($3,400).
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<br />Special Revenue Funds
<br />The City has four special revenue funds with activity in 2020 that finance various activities with
<br />restricted revenues. The City Council approved $120,000 in tax revenues for the EDA as part of the
<br />2019 budget (via a transfer from the General Fund). The proposal is to reduce this amount to
<br />$100,000 for the 2020 budget. The audio/video equipment was updated in the Council Chambers
<br />during 2019 so there are no major purchases budgeted in the Cable TV Fund for 2020. The two Tax
<br />Increment Financing Funds are both projected to have positive cash flows in 2020.
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<br />Capital Project Funds
<br />The Council has previously reviewed the 2020-2024 CIP. Much of this information is reflected in
<br />the capital funds of the City. The allocation of property tax dollars is proposed to remain the same
<br />for the Equipment and Building Replacement Fund ($50,000), increase by $50,000 for the Capital
<br />Improvement (PIR) Fund ($250,000), and increase by $20,000 for the Public Safety Capital Fund
<br />($70,000). The Public Safety Capital Fund, which accounts for Fire Department capital items,
<br />currently has a deficit balance. The property tax allocation will need to be increased in future years.
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<br />CIP 2020-2024
<br />Projects included in the 2020 Proposed Budget and CIP are as follows:
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<br />Project Fund Source Amount
<br />City Hall Parking Lot Equip/Bldg Replacement $175,000
<br />Hard Court Reconstruction Capital Improvement (PIR) $275,000
<br />Hazelnut Park Improvements PIR/Insurance $75,000
<br />Playground Replacements Capital Improvement (PIR) $210,000
<br />LJFD Capital Items Public Safety Capital $67,480
<br />Lift Station Rehab Sewer $100,000
<br />Sewer Lining/Rehab Sewer $200,000
<br />Utility Communication System Sewer/Water $58,100
<br />Hamline Avenue retaining wall Capital Improvement (PIR) $130,000
<br />Hamline Avenue crosswalks PIR/County $120,000
<br />2021 PMP PIR/Utilities $175,000
<br />Lexington Avenue improvements PIR/Utilities $20,000
<br />Karth Lake Retaining Wall Surface Water/Taxing District $142,000
<br />Storm Pond Maintenance Surface Water Mgmt $100,000
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