Laserfiche WebLink
L e ■ mae t SSO Main Street OntervAr. MWV 3.70.38 <br />`_itab( ihetf185 65"1.429.32.32 or rFa., 6.51429-9629 <br />Memorandum <br />Date: July 26, 2023 <br />To: Honorable Mayor and City Council Members <br />Through: Mark Statz, City Administrator <br />From: Bruce DeJong, Finance Director <br />Item: Preliminary Budget Discussion <br />The City Administrator, Asst. City Administrator, and Finance Director have reviewed <br />the preliminary budget as presented in June. There are a couple of changes that we <br />would like to present to the City Council here in July as we have updated information and <br />an opportunity to correct some minor errors. <br />As a recap, this estimate shows an increase of just over $275,000 in the General Fund <br />expenditures. The vast majority of the anticipated increases are due to public safety <br />costs. $155,000 is from a proposed Centennial Lakes Police Department change in <br />funding formula and increasing expenditures. There is also $36,000 in increased Fire <br />costs. This $191,000 cost increase will be partially offset by a one-time state public <br />safety grant of $171,000. <br />The challenge for the City Council is the grant will be received in 2023, while the <br />expenditures will commence in 2024. To properly account for the grant and expenditure <br />mismatch, staff proposes the following: <br />a) Recognize the cash receipt in the General Fund as deferred revenue when <br />received in 2023. This will have the effect of increasing fund balance at the end <br />of this year. <br />b) Adopt a budget for 2024 that shows us as earning the $171,186 in 2024 by <br />spending it on allowed operations. This will let use the 2023 cash in 2024 when it <br />matches up with our increased costs. This will leave us in the exact same <br />financial position as if the grant had been received in 2024. <br />Staff is checking with our auditors at Abdo to verify that this is allowable treatment of the <br />grant proceeds, but we have not yet heard back from them. <br />The next large change is the proposed addition of a new public works employee. We are <br />anticipating the retirement of two public works employees in the next several years. It <br />