2005-09-14 CC Packet - Laserfiche WebLink

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City of Centerville Narrative for 2006 Proposed Budget September 14, 2005 Attached is the proposed Year 2006 General Fund Budget for the City of Centerville. This report is intended to disclose all assumptions used in calculating the proposed budget and explain any significant variances from last year. The following assumptions were made in calculating the proposed budget: Revenues: Tax levy The general tax levy was increased by $25,000 for additional spending and $84,431 to recover a loss in property taxes because of the legislative cut to Market Value Homestead Credit. At this proposed levy amount, initial tax capacity figures indicate that a tax rate decrease of 5 % will occur resulting in the tax rate declining from 52.841 to 50.327. This estimate of tax capacity is based on updated county data that enumerated a decrease in the city's tax capacity and an increase in the city's contribution to area wide spending. local Government Aid The city will receive $22,064 in local government aid in 2006. Anoka County Community Develooment Block Grant Funds (CDBG) The city will receive an additional $200,000 in CDBG funds to assist in the redevelopment of "East Block 7" in 2006. licenses and Permits Licenses and Permits revenues will be remain stable with the anticipated development of Hunters Crossing and the Pheasant Marsh Addition that should be under construction this year. Fines and Forfeits Fines and forfeits have been reduced to reflect the downward trend. Expenditures: Salaries and Benefits The following assumptions were made in calculating salaries and benefits for the 2006 budget. All percentages can easily be adjusted on the attached spreadsheets: >- 3% structure increase (COLA); >- 4% step increase for eligible employees; >- A legislative mandated increase contribution rate to PERA; >- The budget reflects additional salary for part time help in Public Works and Administration (document scanning); >- Allocations were changed to more accurately reflect actual time spent, resulting in slight differences in distributions across departments; >- Overtime was calculated at 5% of the annual salary for the two existing Public Works employees; >- $77 per employee per month increase in health insurance contribution, in accordance with the union contract. Insurance rates are expected to rise by 10% - 15% in January 2006. ,,23