11. 2024 Preliminary Budget Report Staff Report
Date of Meeting: September 19, 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.
At the September 6 Work Session, the Council approved the replacement of the hockey rink boards,
removing that project from the 2024 Park CIP budget. Council also heard from Bob Wilmers,
Chairman of the Internet Action Committee, about the proposed reduction in broadband funding. At
Council’s direction, the broadband funding has been restored to its original request level of $250,000
in 2024 and 2025. Staff has also made minor adjustments to various line items within the budget to
reflect rate increases from contracted services.
Discussion:
The CIP Fund documents have been adjusted since our last meeting. The 401 Fund reflects the
restoration of the broadband funding. The 404 Fund shows the change in project year for the hockey
rink board replacement. 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.
The proposed preliminary 2024 levy amount is $3,021,852. This represents a $218,295 increase over
2023 (7.79%). The preliminary levy is the maximum amount the City can certify in December. This
amount is being presented to account for unknowns in future staff wages (negotiations with the
union are ongoing), to allow for line-item adjustments for unexpected expenses, and to allow for the
increase in broadband funding. As these expenses are clarified between now and the December
Truth-in-Taxation hearing, they and the final levy amount will be adjusted.
Staff has included Resolution 09 19 23 10 certifying the preliminary 2023, payable in 2024 tax levy for
review and approval.
Recommendation:
Approve Resolution 09 19 23 10, certifying the preliminary 2023, payable in 2024 tax levy.
Attachments:
2024 Preliminary Budget Presentation
Summary Budget Worksheet
401 CIP Fund
404 CIP Fund
406 CIP Fund
408 CIP Fund
2024 Preliminary Budget
2019 Salary Study
2024 Tax Impact Worksheet