Adopt Proposed 2015 General Fund Budget

Purpose:  To adopt a preliminary 2015 General Fund Budget that outlines the funding sources (taxes, building permits, etc) that support the General Operations of the City as outlined under the expenditure section of the budget.   

The budget as presented reflects the consensus of the city council at the final preliminary budget work session on September 2, 2014.

The 2015 Proposed General Fund Budget, is strictly a “Proposed” budget and will be amended in the following months before final adoption in December, 2014. The budget as presented represents a balanced budget of $10,314,126, or a $563,991 or 5.78% increase over the adopted 2014 General Fund Budget of $9,750,135.  The proposed budget includes the following initiatives and increases, comprising the majority of the $563,991 increase: 
      Road reconstruction funding
      Elimination of the Housing and Redevelopment Authority (HRA)
      Full-Time Street Maintenance Worker and new plow truck (to maintain targeted maintenance levels)
      Other Personnel Services:  
                      Part-Time to Full-Time Office Assistant
                      Cost-of-Living and step Adjustments
                      Health Insurance 
                      PERA:  State-mandated retirement rate increase
                                        
     Other Supplies:                 
                      Salt & Asphalt Repair Supplies
     Other Charges:      
                      County Geographic Information System (GIS)  program
                      Parking Ramp maintenance (previously funded by HRA levy)
      Other Capital:  
                      800 MHZ Radio System (3-Year Funding)
                                    

The revenue sources are made up of: Taxes: 75.8% (73.6%-2014); Permits: 4.0% (5.2%-2014); Intergovernmental: 4.0% (4.1%-2014); Charges for Services: 5.4% (5.5%-2014); Fines/Interest Earnings: 1.4% (1.7%-2014); and Transfer from other Funds: 9.4% (9.9%-2014).

In total, Public Safety [police, fire, inspections, civil defense] is now 42.1% (42.9%-2014) of the budget. General Government [administration, finance, elections, planning and legal] is 25.5% (25.6%-2014) of the budget. Public Works and Parks represent 30.8% (29.6%-2014) and miscellaneous and transfers make-up 1.6% (1.9%-2014) of the budget.

The 2015 “Proposed” General Fund Budget must be adopted by September 15, 2014 and submitted to the County Auditor along with the certified proposed property tax levy. Therefore, the 2015 Proposed Levy and “Proposed” General Fund Budget are presented for adoption at tonight's Council meeting.

Staff recommends adoption of the 2015 proposed General Fund Budget as was presented to the City Council at its final preliminary budget worksession of September 2, 2014, noting again that budget is subject to change up until final adoption December 9, 2014.

Motion to recommend City Council adoption of Resolution #14-09-186 Adopting the Proposed 2015 General Fund Budget.