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<br />City of Centerville <br />Narrative for 2006 Proposed Budget <br />September 14, 2005/November 30, 2005 <br /> <br />Attached is the proposed Year 2006 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 Levy <br />The general tax levy was increased by $25,000 for additional spending and $84,431 to recover a <br />loss in property taxes because of the legislative cut to Market Value Homestead Credit. At this <br />proposed levy amount, initial tax capacity figures indicate that a tax rate decrease of 5 % will <br />occur resulting in the tax rate declining from 52.841 to 50.327. This estimate of tax capacity is <br />based on updated county data that enumerated a decrease in the city's tax capacity and an <br />increase in the city's contribution to area wide spending. <br /> <br />Local Government Aid <br />The city will receive $22,064 in local government aid in 2006. <br /> <br />Licenses and Permits <br />Licenses and Permits revenues will be remain stable with the anticipated development of Hunters <br />Crossing and the Pheasant Marsh Addition that should be under construction this year. <br /> <br />Fines and Forfeits <br />Fines and forfeits have been reduced to reflect the downward trend. <br /> <br />Expenditures: <br /> <br />Salaries and Benefits <br />The following assumptions were made in calculating salaries and benefits for the 2006 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 two 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 <br />10% - 15% in January 2006. <br /> <br />i <br />