3. Staff Report-2015 Budget
Staff Report
Date of Meeting: December 3, 2014
To: City Council
From: Kristina Handt, City Administrator
Re: Public Hearing on 2015 Budget
Background:
The Council has been working on the 2015 budget since August. In September the Council
certified a preliminary maximum levy of $2,217,509. Under state statute, each taxing
jurisdiction is required to hold a public hearing on their budget.
Issue:
Allow public comment on budget proposal. Should any changes be made to draft budget?
Proposal Details:
Copies of the draft 2015 budget, 2015-2019 CIP and the public presentation are included in your
packet.
As you heard at the November meeting, the Parks and Rec Committee is looking for more
funding for the Lilleskogen parking lot in the 2015 budget. At the Planning Commission’s
November meeting they made a recommendation to have $22,000 come from the general fund
instead of donations and taxes.
Since the preliminary levy was already set, staff has not incorporated these requests into the
budget documents. Council will need to provide direction on whether other items should be
decreased and funds shifted to the Parks Capital Improvement Fund.
Brad Borg and Janie O’Connor have provided comments and suggestions ahead of the meeting
for you to consider. They will also be at the public hearing.
Staff expressed concern to Borg about a couple of his recommendations. First, is the sewer
pumping and maintenance for the warming house. As you know, 2013 was the first year the
Uptown system did not receive a general fund subsidy. Like many other businesses Uptown, the
cost for sewer to the warming house saw a dramatic increase in 2013. Staff believes keeping the
2015 budget consistent with the 2013 actual expenditures is best. Second, the fire department
training expenses are offset by grants from the DNR. The Council may remember the discussion
last year on this topic. The increase was approved with the understanding the funding would
come from grants. DNR grants for fire training cannot be reallocated to parks.
Additionally, as discussed at previous meetings, the Fire Department does their best to budget
not knowing how many fires they may have to respond to. The more fires they respond to the
more equipment they will have to replace. In the past, the Council has accepted this because any
funds not used have been transferred to the Local Road Improvement Fund the following year.
Lastly, the Public Works Department has seen increasing expenses over the last few years as the
department is working to become properly equipped. In the past staff was bringing in their own
tools or sharing with local contractors.
Options:
Accept public comment on the draft budget. Council should provide direction to staff on
any changes they’d like to see so staff can have updated documents prepared for the
December 16th Council meeting. Final adoption will occur at that meeting and changes
can be made up until that time.