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HomeMy WebLinkAbout1A Proposed 2009 Budget Overview EN HILLS Request for Council Action 1A ................................................................------- Prepared By. Ron Moorse Council Work Session Date: August 18, 2008 Proposed 2009 Budget Overview Budgeted Amount- Actual Amount: Funding Source: EN HILLS MEMORANDUM DATE: August 15, 2008 TO: Mayor and Council Members FROM: Ron Moorse, City Administrator Sue Iverson, Finance Director/Treasurer SUBJECT: 2009 Budget Preliminary Overview The proposed 2009 budget reflects the 3.9% state mandated levy limit plus allowable special levies. The City of Arden Hills received an initial overall levy limit from the Department of Revenue of $2,920,373 to which we can add special levies of $82,949 ($15,464 — PERA. Increase, $67,485 — public safety personnel expenditure increases over 2008). This gives the City of Arden Hills an overall levy limit of$3,003,322. Staff used this as the starting point for Council discussions. General Fund Budget General Fund Expenditures The proposed 2009 General Fund expenditures are $3,826,322. This is an increase of$188,327, or 5.2 % over the 2008 budget. (A contingency of$110,063 has been included, based on the overall levy limit, and as the basis for discussion about capital funding. Without this amount, the General Fund expenditures in this proposal would increase $89,619 or 2.7 %.) A summary of the major items causing the General Fund expenditure increase is as follows: Memo City Council 2009 Budget Preliminary Overview 2 ■ Annual pay adjustments. (The proposed budget reflects a 3% $36,096 increase in pay schedules). The annual pay adjustments also include scheduled pay steps. ■ Group Insurance contribution increase. The proposed expenditures $17,599 reflect a$24 per month increase in the City's contribution toward employee health insurance and other benefit options in the cafeteria benefit plan. ($672 per month,per employee) ■ Additional costs related to expanding the Recreation Programmer $13,600 Position from part-time to full-time (see attached memo). This impacts the Recreation and Street Department. ■ Mayor and Council salaries are increased effective 1/1/2009 per $12,500 resolution adopted by the City Council in September 2007. ■ Newsletter"Arden Notes" increased costs have not been finalized $2,000 at this point—currently increased the budget by$2,000, however estimates show this could increase by$5,000 ■ Engineering fees were decreased by 50%in the administration ($25,000) budget, however this needs to have further analysis as we look at our joint powers agreement with Roseville and workloads. ■ Contract Policing costs have increased 6.2% over 2008. This $50,225 increase mainly reflects a full year of the patrol power shift deputy position, which was funded for half of the year for 2008, and the purchase of a new traffic car. ■ Contracted Fire Service costs. The budget reflects a 9.1% increase $28,251 in costs for contracted fire service. This increase is due mainly to the proposed addition of a Deputy Fire Chief position. ■ Motor fuels expenditures in the Street and Park Departments are $4,050 proposed to increase by a total of 27%to reflect actual fuel costs. ■ Maintenance materials in the Street and Park Department are $11,525 proposed to reflect the increase in Roadmix and Sand/Salt. ■ An intern has been included in the Fiancne and Support Services $3000 department. The cost of the intern can be offset by a matching grant from the MGFOA. The total impact to the General Fund budget would be approximately$3,000. Memo City Council 2009 Budget Preliminary Overview 3 General Fund Revenue Highlights General Fund revenues are generally flat, particularly construction-related revenues. Tax Lew The total tax levy required to fund the proposed 2009 budget is $3,003,322. This is an increase of$205,974, or 7.36 % over the 2008 levy. The tax levy required to fund the proposed 2009 General Fund budget, without the $110,063 contingency amount, is $2,893,259. This is an increase of$95,911, or 3.4 % over the 2008 levy amount. The contingency amount reflects the maximum levy available to the City. While a portion of this levy amount should be used as a contingency against unforeseen expenditures, the largest portion could be used to provide funding for future capital needs, including equipment replacement, building improvements,park improvements, housing rehabilitation, etc. Tax Capacity Rate and Impact of the Tax Levy on Property Owners The increase in the City's tax capacity is not known at this time. Meetings have been scheduled with Ramsey County on August 21" to receive that data. If additional information is received prior to the work session, staff will bring updated calculations to the work session.