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