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<br />City of Centerville <br />Narrative for 2007 Proposed Budget <br />September 13, 2006 <br /> <br />Attached is the proposed Year 2007 General Fund Budget for the City of Centerville. This report is <br />intended to disclose all assumptions used in calculating the proposed budget and explain any significant <br />variances from last year. <br /> <br />The following assumptions were made in calculating the proposed budget: <br /> <br />Revenues: <br /> <br />Tax Levv <br />The general tax levy was increased by $106,469 for additional spending. At this proposed levy <br />amount, initial tax capacity figures indicate that a tax rate will increase to a rate of 51.69 from <br />50.48. This estimate of tax capacity is based on updated county data that enumerated a <br />decrease in the city's tax capacity and an increase in the city's contribution to area wide <br />spending. <br /> <br />Local Government Aid <br />The city will receive $23,088 in local government aid in 2007. <br /> <br />Licenses and Permits <br />Licenses and Permits revenues will decline slightly because of a change in the housing market. <br /> <br />Fines and Forfeits <br />Fines and forfeits have been increased. <br /> <br />Interest Earninas <br /> <br />Increasing rates will increase interest earnings. <br /> <br />Assessments <br /> <br />Assessment receipts will decline in 2007. <br /> <br />Expenditures: <br /> <br />Salaries and Benefits <br />The following assumptions were made in calculating salaries and benefits for the 2007 budget. <br />All percentages can easily be adjusted on the attached spreadsheets: <br /> <br />3% structure increase (COLA); <br />4% step increase for eligible employees; <br />A legislative mandated increase contribution rate to PERA; <br />The budget reflects additional salary for part time help in Public Works and <br />Administration (document scanning); <br />Allocations were changed to more accurately reflect actual time spent, resulting <br />in slight differences in distributions across departments; <br />Overtime was calculated at 5% of the annual salary for the three existing Public <br />Works employees; <br />$77 per employee per month increase in health insurance contribution, in <br />accordance with the union contract. Insurance rates are expected to rise by 9- <br />12 % in January 2007. <br /> <br />Ji <br />