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2025 Preliminary Budget Presentation - Updated2025 Preliminary Budget September 4, 2024 Discussion Items Capital Improvement Committee Recommendations. Review of CIP and budget impacts Brief Introduction to the proposed 2025 General Fund Budget 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 all Capital Improvement Funds Increase levy amount in 408 Road Improvement Fund by 10% from the proposed 2024 amount ($400,000 to $440,000) Utilize additional road rating technology to rate roads in 2025 Create a public input plan to engage the public in discussion about the appropriate amount of money for annual road maintenance Capital Investment Committee Recommendations cont. Consider a change to driveway culvert policy, returning ownership and maintenance to residents Consider adopting additional development fees, including seal coating and stormwater fees Issue equipment certificates for fire department vehicle purchases 2025 Capital Improvement Fund – 401 General Fund Beginning Fund Balance includes a $150,000 transfer out to 404 Park CIP to support the Tennis Court project in 2024 $125,000 tax levy to support recommended projects Six projects totaling $ 323,041 Fund Balance will be used to make up the shortage Ending Fund Balance of $489,826 $686,867 Beginning Fund Balance Revenue $125,000 Levy $1,000 Interest $126,000 Total Expenses $30,0002025 LCCMR – Gateway Trail $92,000Broadband $17,548 Fire Dept Radios $40,945Jaws of Life $17,548Lucas CPR Device $125,000Cold Storage Building $323,041 Total ($197,041)Revenue Over/(Under)Expenses $489,826 Ending Fund Balance 2025 Capital Improvement Fund – 404 Park Fund 2024 - Transfer of $125,000 in Unassigned Fund Balance and a Transfer from 401 of $150,000 will provide a one-time revenue increase for 2024/2025 projects $40,000 tax levy to support recommended projects One project totaling $ 300,000 Ending Fund Balance of $13,058 $272,993 Beginning Fund Balance Revenue $40,000 Levy $66 Interest $40,066Total Expenses $300,000Tennis Court Improvements $300,000Total ($259,934)Revenue Over/(Under)Expenses $13,058 Ending Fund Balance 2025 Capital Improvement Fund – 406 Equipment Fund $125,000 tax levy to support recommended projects Two purchases totaling $592,296 ARPA money used to pay for plow truck Equipment Certificate issued for $210,000 to pay for tanker New debt levy of approximately $23,000, starting in 2025 until 2035 Ending Fund Balance of $77,999 $329,781 Beginning Fund Balance Revenue $125,000 Levy $1,061 Interest $126,061 Total Expenses $286,787 2003 Tanker 2 Replacement $305,5092011 Snow Plow Replacements $592,296 Total ($137,515)Revenue Over/(Under)Expenses Other $210,000Bond Proceeds $77,999 Ending Fund Balance 2025 Capital Improvement Fund – 408 Street Improvement Fund $440,000 tax levy to support recommended projects One street reconstruction project totaling $ 700,000 Ending Fund Balance of $359,671 $351,295 Beginning Fund Balance Revenue $440,000 Levy $12,295 Interest $380,447 Total Expenses $700,0002025 Local Road Improvement $700,000Total $103,590Revenue Over/(Under)Expenses $359,671 Ending Fund Balance 2025 Preliminary Budget - Revenues The General Fund levy is projected to be $1,893,907, a $27,989 increase over 2024, or a 1.5% increase. Licenses and Permits have been increased slightly to reflect fees collected from new cannabis registrations. Interest earning has been increased to reflect the increased rates available to the City’s money market account. Total General Fund Revenue is $2,383,667. This is a 2.47% increase over 2024. 2025 Preliminary Budget - Expenses All personnel wages have been increased by 3.5% in accordance with the negotiated union wage increase. Council wages have been increased, estimated to be at 3.5%. The actual increase is based on the 12-month CPI from November 2023 to November 2024 Budget includes a full-time treasurer. Fire Department wages have been increased by 23% to better reflect actual wages paid Public Works includes $175,000 for contractual road maintenance and repair. This is in addition to the CIP projects 2025 Preliminary Budget - Expenses The following percentage increases are assumptions. Actual numbers will not be available until later in the year. All Health and Dental Insurance line items have been increased by 10% Property and Workers Comp Insurance line items have been increased by 10%. Bolton & Menk services have been increased by 5% Policing services have been increased by 5.91% per 2025 Agreement Total expenses are $2,365,660. This is a 3.45% increase over 2024 General Fund Budget Summary DifferenceCurrent 20252024 $57,554$2,383,677$2,326,123Total General Fund Revenue $78,838$2,365,660*$2,286,822Total General Fund Expenses ($21,284)$18,017$39,301Revenues Over / (Under) Expenses (1.0%)58.4%59.4%Estimated Fund Balance** * Current expenses have been reduced by $16,357 from August Presentation **Shows an estimated percentage of next year’s projected expenses Tax Levy Summary Difference20252024 $27,989$1,893,907$1,865,918General Fund Levy $330,789$676,423*$345,634Debt Service Levy ($55,300)$730,000$785,300CIP Funds Levy $0$0$5,300EDA Levy $303,478$3,300,330$2,996,852Total Levy ($13,435)($121,291)**($107,857)Less Fiscal Disparities $290,043$3,179,038***$2,888,995Total Net Levy * $120,148 in interest and project savings are being used to reduce the levy amount of the 2024 Road Project Bond **3-year Average *** Current Net Levy has been reduced by $90,105 from the budget presented in August Tax Rate Summary Difference20252024 ($88,730)$10,758,518$10,847,248Estimated Tax Capacity $290,043$3,179,038$2,888,995Net Levy 2.916%29.549%26.663%Tax Rate * Tax Rate at August presentation was 30.535% Historic Tax Rate Summary % ChangeTax Rate 35.124%2017 -2.37%34.293%2018 -7.83%31.607%2019 -2.62%30.777%2020 -11.85%27.129%2021 9.24%29.636%2022 -10.72%26.460%2023 0.66%26.663%2024 10.95%29.549%2025 9 Year Average – 30.134% 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 the Council wishes to evaluate multiple levy and spending options. The next budget discussion is scheduled for the Council's Regular Meeting on September 17, 2024, at which the Council will approve the 2025 Preliminary Budget.