CCP 08252025 - Laserfiche WebLink

Home

Attachment 1 38 With this memo, I am presenting the proposed budget in distinct sections to show the components 39 of thebudget and what is driving the tax levy. First this memo will discuss the base budget, which 40 is reflective of the increased costs to continue with the existing employee base, and our programs 41 and services. I have provided more narrative detail on the overall city budget, by budget division, 42 that will hopefully provide more context on what costs are increasing and decreasing in the base 43 budget. Following that, I will discuss the levy increase as part of the base budget and what is 44 driving that increase. 45 46 After discussing the base budget and the resulting levy, I will then explore scenarios for the City 47 Council to consider when building the final 2026 budget and levy. I will review the impact of 48 adopting franchise fees to help with the City’slong term capital funds. The imposition of 49 franchise fees will also allowfor some of the existing levy going toward capital funds to be 50 reallocated to the operational budget. With that in mind, I will then review what the levy impact 51 would be if the City used the reallocated levy to fund the new public safety positions. 52 53 This memo does not provide a specific recommended budget and levy to the City. Instead,it 54 providesinformation and context on the base budget and provides for scenarios for the City 55 Council to consider when setting the preliminary budget and levy on September 22. 56 57 Base Budget 58 The base budget covers a variety of existing programs and services. These include providing the 59 basic services of a city (police, fire, parks, streets, utilities, zoning and building code enforcement, 60 etc.) and addressing priorities that the community has identified (sustainability, focus on equity, a 61 range of housing options, volunteer management, multi-modal transportation options, etc.). 62 Beyond those demands, there are administrative functions that need to be in place to ensure that 63 bills are paid and collected, that there are the appropriate personnel in place to carry out city 64 functions, and that information about the city is available in various forms for taxpayers to access. 65 66 To ensure the City effectively provides services and programs that meet community priorities, 67 annual budget investments are necessary. Rising costs of supplies, materials, equipment, 68 personnel, and new mandates from county, state, and federal partners will increase the City's 69 expenses each year. 70 71 This budget, like previous ones, reviews existing programs to find cost-saving changes. Although 72 we achieve cost reductions annually, they are often offset by increases in other areas. Without 73 halting programs and reducing staff, these savings won't outpace the rising costs needed to sustain 74 city operations. However, this exercise is crucial as any savings help minimize levy increases. 75 76 An additional pressure is the expiration of grants or one-time funds that previously covered costs 77 for certain positions in the 2025 budget. Examples include embedded social workers and housing 78 navigator positions, and the use of Public Safety Aid to assist in funding the Police Department 79 Commander position, the Fire Department cadets, funding for Tubman, and the cost increases 80 from the 2024 union contracts. 81 82 With all that in mind, on the following pages, I will be sharing information about the components 83 of the base budget, including what costs are going up and what costs have been reduced. Please 84 note the information contained below is about the overall budget, not just the levy. The overall 85 budget is comprised of numerous revenue streams that include charges for services and utilities, 1 Qbhf!34!pg!49: