7.a 2024 Budget Presentation2024 Preliminary Budget
JULY 5, 2023
Discussion Items
Proposed 2024 Proposed Capital Improvement Plan.
Brief Introduction to the proposed 2024 General Fund Budget
Review of CIP and budget impacts
Council is encouraged to ask questions, offer comments, and suggest changes at anytime
Capital Investment Committee
Recommendations
Establish consistent annual levy-supported cash contributions to call Capital
Improvement Funds
Utilize excess unassigned 2022 fund balance to complete park projects in 2024
Consider bonding for a significant road project in 2024
Issue equipment certificates for public works and fire department vehicle
purchases
2024 Capital Improvement Fund - 401
$603,601 Beginning Fund Balance
Revenue
$300,000 Levy
$3,000 Interest
$303,000 Total
Expenses
$250,000 Broadband
$160,000 Bliss Stormwater
$17,548 Warming House Door Locks
$30,000 City Office/Equip Room Update
$457,548 Total
($154,548)Revenue Over/(Under)Expenses
$449,053 Ending Fund Balance
$300,000 tax levy to support
recommended projects
Four projects totaling $ 457,548
Fund Balance will be used to make up
the shortage
Ending Fund Balance of $449,053
2024 Capital Improvement Fund - 404
2023 - Transfer of Unassigned Fund
Balance ($200,000) will provide a one-
time revenue increase for 2024 projects
$60,000 tax levy to support
recommended projects
Two projects totaling $ 300,000
Ending Fund Balance of $42,372
$277,306 Beginning Fund Balance
Revenue
$60,000 Levy
$66 Interest
$5,000Misc. Revenue
$65,066Total
Expenses
$175,000 Hockey Rink Boards
$125,000Tennis Court Improvements
$300,000Total
($234,934)Revenue Over/(Under)Expenses
$42,372 Ending Fund Balance
2024 Capital Improvement Fund - 406
$125,000 tax levy to support recommended
projects
Five purchases totaling $ 951,356
Equipment Certificate issued for $640,000
New debt levy of approximately $75,000,
starting in 2025 until 2035
Ending Fund Balance of $19,717
$205,028 Beginning Fund Balance
Revenue
$125,000 Levy
$1,045 Interest
$126,045 Total
Expenses
$425,000 2003 Tanker 2 Replacement
$325,0002017 Plow Truck Replacement
$90,000New Holland Skid Steer
$84,356F-550 Replacement
$27,000Assorted Equipment Attachments
$951,356 Total
($825,311)Revenue Over/(Under)Expenses
Other
$640,000Bond Proceeds
$19,717 Ending Fund Balance
2024 Capital Improvement Fund – 408
$400,000 tax levy to support recommended
projects
One street reconstruction project totaling
$ 3,575,000
New GO bond issued for $4,000,000
New debt levy of approximately $385,000,
starting in 2025 until 2040
Ending Fund Balance of $1,148,471
$305,866 Beginning Fund Balance
Revenue
$400,000 Levy
$10,705 Interest
$6,900Intergovernmental
$417,605 Total
Expenses
$3,575,000 Street Reconstruction Project
$3,575,000Total
($3, 157,395)Revenue Over/(Under)Expenses
Other
$4,000,000Bond Proceeds
$1,148,471 Ending Fund Balance
2024 Preliminary Budget - Revenues
Presented budget document includes a column for the previous 3-year average.
This is new for the 2024 budget.
The General Fund levy is projected to be $1,884,577, a $18,659 increase over
2023, or a 1% increase.
Licenses and Permits is projecting an $18,000 increase over 2023, primarily
due to an increase in Building Permit fees to be more in line with the historical
average
Total General Fund Revenue is $2,367,578. This is a 1.53% increase over 2023.
2024 Preliminary Budget - Expenses
City Treasurer has indicated she will retire at the end of 2024. The
Administrative wages include a replacement, funded for 32 hours a week, with
family benefits. Currently, the overlap is budgeted for 3 months.
All non-union wages have been increased according to the wage scale
The following percentage increases are assumptions. Actual numbers will not be
available until later in the year.
Union wages were increased by 10% in anticipation of negotiations and due to
discussions with the local Union Representative
All Health and Dental Insurance line items have been increased by 10%
Property and Workers Comp Insurance line items have been increased by 5%.
2024 Preliminary Budget - Expenses
Bolton & Menk services have been increased by 5%
Policing services have been increased by 10%
Legal services have been increased to $60,000 to reflect the amount spent
through first half of 2023
Public Works include $200,000 for contractual road maintenance and repair.
This is in addition to the CIP projects
Total expenses are $2,261,096. This is a 5.10% decrease over 2023 (2023
includes a $200,000 transfer of Unassigned Fund Balance to Parks Fund).
General Fund Budget Summary
Difference20242023
$35,764$2,367,579$2,331,815Total General Fund Revenue
($121,422)$2,261,096$2,382,518*Total General Fund Expenses
$157,186$106,483($50,703)Revenues Over / (Under)
Expenses
* Includes $200,000 transfer of Unassigned Fund Balance to Park Fund
Tax Levy Summary
Difference20242023
$18,659$1,884,577$1,865,918General Fund Levy
($60,902)$345,634$406,536Debt Service Levy
$359,197$890,300$531,103CIP Funds Levy
$0$5,300$5,300EDA Levy
$316,954$3,120,511$2,803,557Total Levy
($6,175)($129,454)*($123,279)Less Fiscal Disparities
$310,779$2,991,057$2,680,278Total Net Levy
*3-year Average from 2020 - 2022
Tax Rate Summary
Difference20242023
$586,824$11,114,983$10,528,159Estimated Tax Capacity
$310,779$2,991,057$2,680,278Net Levy
1.452%26.910%25.458%Tax Rate
Areas to Review
Reducing overlap with the new Treasurer would save $5,700 per month.
Signing the Organized Collection Agreement with Waste Management would
save $9,200
Reducing Capital Project spending would reduce the levy allocated to those
funds.
Bonding in 2024 has a dramatic effect on the projected 2025 levy.
Looking Forward
Staff will continue to update projected numbers with actual numbers when they
come in.
Multiple budget documents can be prepared to show various scenarios if
Council wishes to evaluate multiple levy and spending options.
Review the Summary Budget document to evaluate the 2024 bonding effect on
future budgets and levies.
Next budget discussion is scheduled for the Council Work Session on August 2,
2023. Unless Council wishes to call a Special Meeting beforehand.