Discussion of 2020 Budget/Levy and Review of 5-Year Budget (2020-2024)

Purpose:  To determine a final budget and levy for adoption at the December 10, 2019 City Council meeting.

Background:  The preliminary budget and levy was adopted at the regular City Council meeting of September 24, 2019.  The preliminary levy adopted was $12,541,709 or a 6% increase over the 2019 adopted levy of $11,831,336.

Since the September 24 adoption, the city has received its preliminary tax capacity rate from the County 39.304% (previously estimated at 39.563%).

For the November 26 work session the 2020 budget and levy have been amended to reflect the following:

1. $9,870 reduction in Personnel related costs due to changes in health insurance coverage
2. $8,412 reduction due to removing membership in the Metro Cities
3. $13,295 increase in revenue due to the estimate amount of reimbursement for the presidential primary election
4. $900 increase in park maintenance revenue from ARAA

The above reflected a net decrease in levy of $32,477 or a new revised levy amount of $12,509,232 or a 5.73% increase over 2019 and a proposed tax capacity rate of 39.184%.
The following attachments are presented for review of the 2020 budget & levy:

1. Tax Capacity Rate Calculation
2. 2020 Personnel Requests
3. 2020 Capital Requests
4. 2020 Proposed General Fund Budget updated to reflect reductions noted above
5. 2020 Proposed EDA Budget

Attached are several documents related to not only 2020 but also for years 2021-2024 (Five-Year Budget) to reflect the effect on budget, tax rates and levies for these years in response to personnel requests and debt related to roads, capital equipment and the public works campus.  The 2021-2024 numbers are strictly assumptions.

1. 2020-2024 Personnel Requests with annual costs
2. 2020-2024 Capital Equipment Requests
3. 2020-2024 Estimated Debt Levy
4. 2020-2024 Tax Capacity Tables (All new positions requested are included)
5. 2020-2024 General Fund Budget Summary (All new positions requested are included).

A summary of the budget assumptions used to complete the 5-year budget will be handed out at the worksession.
 

30-60 minutes

Finance Director

Determine a final 2020 Property Tax Levy and 2020 General Fund Budget.