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Department Approval �. �: ,Ir1�t Item Description: BACKGROUND Attachment A �i1 `Y ��r I REQUEST FOR COUNCIL ACTION Date: OS/12/2014 Item No.: 12.a City Manager Approval ��.-.�..� ��_ � Receive Preliminary Report on the 2015 Budget & Tax Levy Impact Items At the February 24, 2014 City Council meeting the Council considered the proposed 2015 Budget Calendar which outlined a series of steps to establish an eventual budget. One of those steps included a preliminary review of the major budget impact items. The information below is presented in two sections. The first section highlights the eg neral budget impacts in the property tax-supported programs. There will be additional impacts that will be highlighted in the departmental budget presentations on May 22nd. The second section deals with programs that are supported by non-tax revenues; however Staff is recommending at this time that a separate discussion be held given the varied nature of these programs and their funding sources. SECTION 1: Property Tax-Supported Programs A summary containing an estimate of these impacts is presented below. 2015 Budget Impacts: Property Tax-Supported Programs 2015 Bud et Itn act Item Descri tion / Comments Amount Em lo er PERA Contribution Mandated contribution increase for Em lo ees 52,000 Em lo ee COLA Based on 2% cost-of-livin -adjustment (COLA) 196,000 Em lo ee wa e ste increases Eli ible em lo ees under the Com ensation Plan 100,000 Em lo ee Healthcare Increased healthcare remiums ** - Ca ital re lacements — New Based on Staff recommendations ( er memo) 55,000 General inflation - Ca ital Inflation on scheduled ca ital re lacements 5,000 General inflation - O erations Inflation on su lies, rofessional services, etc. 100,000 Eliminate Use of Reserves 2014 Bud et relied on reserves to balance the bud et 346,000 POC Fire Em lo ee Wa es Union formation and Fire De artment reor . Pendin unknown POC Fire Em lo ee Healthcare Union formation and Fire De artment reor . Pendin unknown Reduction - Debt Service Ci Hall Bond Refundin Savin s(annual) (60,000) Reduction - Debt Service Street Bond #25 Paid Off (160,000) Reduction - Fire Relief Contribution Projected decrease er revised actuarial stud (11,000) Total Minimum Im act $ 623,000 ** The Ciry is projecting a 3-5% increase in healthcare premiums; however these costs are expected to be offset by lower enrollments in the City's Healthcare Plan. Page 1 of 4