CCP 06-21-2004 - Laserfiche WebLink

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. . . ~ ~LLS MEMORANDUM DATE: Agenda Item 2.D June 16, 2004 TO: Honorable Mayor and City Council FROM: Murtuza Siddiqui, Finance Director/Treasurer ""'-.S SUBJECT: 2005 Budget Update & Overview of Funds BACKGROUND: Staff is in the process of developing a Preliminary 2005 Budget. As we progress forward and take the next steps, staff needs direction from the Council with regards to changes for the coming year. Goals and objectives that were previously discussed at the various Council meetings are being incorporated in the budget. Attached to this document is a chart that provides an overview of the 2004 Adopted Budget, breaking it down to the fund level and subsequently to the individual department and program level. In addition to the expenditure budgets, another chart is also provided that summarizes the 2004 Revenue Budget. This information will allow the Council and newer staff, to become more familiar with the financial structure of the City. DISCUSSION: This year, the State Legislature eliminated levy limits. Historically, the City limited the annual levy increases to about 3%. In 2004, the increase from prior year was slightly less than 3 percent. The elimination of the levy limits allows the City the opportunity to fund capital projects, as well as allow for inflationary increases in the overall operating budget. Staff, along with direction from the Council, has identified a number of factors that will influence the 2005 Budget. The factors, to name a few, are identified as follows: . Levy Limits - how much to increase? . Rate Studies - sewer and water. . Overall budget increases? . Implementation of the LaborlUnion contract . Salaries and Benefits. Employee step/COLA increases. . Increase in employee benefits costs (health and dental). It is estimated that the premiums will increase by about twenty (20) percent. Current City contribution towards health and