4.c Staff Report - 2018 general fund levy
Staff Report
Date of Meeting: November 1, 2017
To: City Council
From: Neil Soltis, Administrator
Re: General Fund Levy for the 2018 Budget
Background:
In 2012 the City council adopted a fund balance policy that establishes a target range for the General
Fund balance and provides guidance for when the fund balance exceeds the target amount. That
information is shown below:
General Fund: Maintain fund balance of 35% to 50% of total annual General Operating Fund
expenditures.
If the balance of the unassigned account rises above 50% at the end of the fiscal year, the amount
above 50% shall either be budgeted in the next year’s annual operating budget or transferred to a
capital improvement account,
The City Administrator shall annually report the projected unassigned fund balance of the General
Fund when the annual budget for the forthcoming year is presented to the City Council.
Issue:
For the 2018 budget should the fund balance amount over 50% of expenditures be used to reduce the
General fund levy or transferred to a capital improvement account?
Proposal Details:
Based on current projections 2017 will end with a General Fund balance of $1,478,964. This exceeds the
budgeted 2017 year end fund balance of $1,258,774 largely due to the increased building permit activity
and expenditures under budget in other departments. These are shown on the charts that follow.
Based on the Fund Balance policy, the amount of funds available to be applied to the 2018 budget or
transferred to a capital fund account is calculated as follows:
2018 Budget
Projected fund balance 12/31/2017 $ 1,478,964
2018 budgeted expenditures $ 1,758,850
50% of budgeted expenditures $ 879,425
Excess per fund balance policy $ 599,539
2016 Actual 2017
Projected
2017
Proposed 2018 Budget
Other Financing Sources $-$-$-$-
Other Income and Transfers in $41,358 $35,100 $25,200 $13,500
Fines & Forfeitures $11,792 $9,000 $12,000 $12,000
Charges for Service $65,252 $64,700 $64,100 $61,000
Intergovernmental Services $63,890 $56,900 $57,900 $63,800
Licenses and permits $160,513 $311,700 $101,900 $132,600
Other Taxes $16,661 $2,000 $23,800 $13,200
Property Taxes $1,484,612 $1,551,300 $1,551,300 $1,442,750
$-
$500,000
$1,000,000
$1,500,000
$2,000,000
$2,500,000
GENERAL FUND REVENUE SUMMARY
2016 Actual 2017
Projected
2017
Proposed 2018 Budget
Public Works $950,744 $1,266,800 $1,371,800 $739,000
Planning & Building $112,602 $248,600 $149,000 $125,300
Community Center $37,763 $41,910 $40,200 $46,300
Parks & Recreation $53,008 $63,300 $60,900 $61,850
Fire $200,280 $219,100 $244,500 $269,800
Police $120,696 $124,300 $120,500 $127,200
Elections $5,428 $1,900 $1,300 $6,200
City Council $17,645 $19,400 $18,900 $19,500
Administration & Finance $320,225 $338,700 $342,600 $363,700
$-
$500,000
$1,000,000
$1,500,000
$2,000,000
$2,500,000
GENERAL FUND EXPENDITURE SUMMARY BY
DEPARTMENT
Fiscal Impact:
The budget as proposed provides for a $20,000 decrease in the General fund balance due to a transfer of
fund balance to the Economic Development Authority to fund a revolving loan program. Before a transfer
to a capital fund or a reduction in the levy the projected 12/31/2018 fund balance would be $1,458,964.
If the full amount of the projected available funds were to be either transferred or applied to the 2018
budget the projected 12/31/2018 fund balance would be $859,425.
2016 Actual 2017
Projected 2017 Budget 2018 Budget
Fund balance - 12/31 $1,772,274 $1,478,964 $1,258,774 $1,458,964
Revenue $1,844,078 $2,030,700 $1,836,200 $1,738,850
Expenditures $1,818,391 $2,324,010 $2,349,700 $1,758,850
$-
$500,000
$1,000,000
$1,500,000
$2,000,000
$2,500,000
GENERAL FUND SUMMARY