Loading...
6. Staff Report - 2024 Preliminary Budget Staff Report Date of Meeting: September 6, 2023 For: Honorable Mayor and Council From: Kyle Morell, City Administrator Subject: 2024 Preliminary Budget Discussion Background: Staff presented the preliminary 2024 budget for Council review at their July 5 Work Session. The Capital Investment Committee met twice to review the CIP funds and discuss future projects. Their recommendations have been included in the CIP fund budgets. The General Fund budget was prepared using past revenue and expense practices and a six-month review of 2023 spending as guides for future revenue and expense projections. Staff prepared a 2024 Preliminary Budget presentation outlining the recommendations of the CIP Committee, detailed the 2024 revenues and expenses for each CIP fund, and outlined the assumptions made in assembling the preliminary budget. Also included are the individual CIP Fund documents and a Summary Budget document that shows the complete levy picture and the proposed 2024 tax rate. At the August 2 Work Session, Councilmember Benson asked for a 2024 budget that kept the City’s tax rate similar to the rate established in 2023. Staff accomplished this by reducing the proposed funding for Broadband expansion within the 401 CIP fund. Currently, the proposed 2024 tax rate is 26.449%, which is a reduction of 0.010% from the final 2023 rate. Discussion: The CIP Fund documents have been adjusted since our last meeting. The 401 Fund reflects the reduction in Broadband funding to reduce the overall levy. The 404 Fund shows the change in project year for the hockey rink board replacement that Public Works Director Fischer proposed. The 406 and 408 Funds remain unchanged. The 2024 Preliminary Budget, Budget Presentation, and Summary Budget have been updated to reflect the revised 2024 numbers. The 2019 Salary Study document has been included to show how the 2024 wages compare to the study results. Over half of our employees are at the top of or off the scale. I am still attempting to contact the consultant who conducted the Study to have it updated. I have also included a Tax Impact Worksheet, which shows the proposed taxes to be paid by houses of varying value. Recommendation: No action is required from the Council at this time. The budget has been presented for review and comment. Council will vote on a 2024 preliminary budget at their September 19, 2023, Regular Meeting. Attachments: 2024 Preliminary Budget Presentation 401 CIP Fund 404 CIP Fund 406 CIP Fund 408 CIP Fund Summary Budget Worksheet 2024 Preliminary Budget 2019 Salary Study 2024 Tax Impact Worksheet