2002-08-26 CC Worksession - Laserfiche WebLink

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f City of Centerville Narrative for 2003 Proposed Budget Third Draft August 26, 2002 Attached is the third draft of the budget for the General Fund, Special Revenue Funds, Debt Service Funds and Capital Projects Funds for the City of Centerville. This report is intended to describe any significant changes to the second draft of the budget. Capital Outlay expenditures were difficult to compute without a current capital improvement plan. Therefore, much discussion and work should be focused in that direction. However, we have done some preliminary work in this area as shown in the attached worksheets. The following changes were made to the second draft budget: Tax Levy Due to varying opinions of council members, the tax levy is being proposed at the levy limit of$1,562,680. Due to increased tax capacity, Centerville taxes will be reduced by approximately 9.8% for taxes payable in 2003, even with the maximum levy (see attached tax calculation worksheet). Staff is recommending the maximum levy due to extensive capital needs. In addition, General Fund reserves are below the recommended amount. Preliminary estimates of annual capital frmding requirements are attached. Requested budget cuts and changes have been made. Any additional levy capacity up to the maximum limit has been added to the street replacement account. If council desires to decrease the levy, the street account can be adjusted. Staff At the request of council, the part-time park intern was eliminated from the Parks Program budget. This resulted in a savings of approximately $15,000. Salaries & Benefits C.O.L.A. was reduced to I %. A flat amount of $620/month (the equivalent of the union insurance contribution) was budgeted for all employees for the cafeteria plan. The two union employees were given a 4% step, in addition to the 3% C.O.L.A. required under the contract. Budgeted overtime for the Public Works Director was cut in half. Revised payroll calculation worksheets are attached. Council should adopt the salary schedule before year-end. State Aids There is a great deal of uncertainty about the Local Government Aid. Since LGA does not represent a significant percentage of the City's total revenue projection, I would not be greatly concemed over a reduction in LGA. See the attached letter from the League of Minnesota Cities for further guidance.