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<br />. <br /> <br />. <br /> <br />. <br /> <br />~ <br />~ILLS <br /> <br />MEMORANDUM <br /> <br />DATE: <br /> <br />August 21, 2006 <br /> <br />AGENDA ITEM: 2C <br /> <br />TO: Mayor and City Council <br /> <br />FROM: Michelle Wolfe, City Administrator <br /> <br /> <br />SUBJECT: Work Session Discussion: 2007 Budget Preparation Update <br /> <br />As originally scheduled, I planned to present a recommended 2007 budget at the August 21 <br />Work Session. However, the Finance Director's resignation has made that a tough goal to reach. <br />So, similar to last year, we will present a proposed budget to the Council at a later date, with <br />final approval in December as required. <br /> <br />We have made significant progress in preparing the 2007 budget. All the depaJtrnent budget <br />requests have been submitted, entered, and calculated. (The only exception is the TCAAP <br />budget, which will be put together in the near future.) Summaries are attached for your <br />information. However, this is all very preliminary and has not been reviewed by me with the <br />departments in any detail. I believe, however, that it provides a good starting point for <br />supporting the recommended preliminary tax levy amount. It is also a good time to check in <br />with Council on budget status and priorities to-date. <br /> <br />At this same work session you will be reviewing CIP recommendations, which make up a <br />significant percentage of the proposed budget. In terms of the operating budget, the summaries <br />attached reflect some other significant pieces, including some items that we received general <br />direction on at the July Work Session: <br /> <br />1. Salaries are currently based on the existing compensation plan and a 2.75% annual <br />adjustment on January 1, 2007. <br />2. Since the July meeting we were notified that our health insurance premiums will <br />increase 7%, which is significantly less than the 20% we projected. The 7% figure <br />has been included in the preliminary budget document. <br />3. The summary includes the 2007 CIP proposals as reflected in the CIP program <br />outlined in Item 2B of the August 21 Work Session. <br />4. Other employee benefit rates have been included and we are not expecting any <br />significant changes to those numbers. <br />5. Utility rate changes and rate increases (i.e. water) have been included. <br /> <br />Ifthe council adopts a preliminary levy of 4%, this will translate into a $100,949 increase from <br />2006. This preliminary levy needs to be certified to Ramsey County by September 15, 2006. City <br />