5.6. SR 06-13-2011 - Laserfiche WebLink

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State Aid Over the past several years State Aid has become a less reliable revenue source. Most State estimates have the City receiving no LGA in 2012, and even if some did show up in the final state budget, I anticipate taking the same approach of not including LGA in the General Fund budget. We should revisit the capital outlay items that were removed from the budget and set aside if we do receive any LGA. At this point, I would anticipate that we will not receive any in 2011. Council did want a contingency plan for these items and the capital outlay reserve was identified as a possible funding source. I have attached a list of the $196,400 in capital outlay that was removed from the budget pending LGA. Transfer In Transfers are made each year to the general fund from the waste water, liquor, garbage, EDA, and HR.A to cover costs associated with providing services to those funds. We will again review the transfers to ensure they are covering those services. The exception is the liquor fund transfer which is significantly higher to offset other operating expenditures. One item to consider this year is using more of the capital outlay reserve as a transfer in to cover general fund capital outlay. Levels of Service The preliminary budget will be drafted based on continuing the same level of service. The unfilled positions and any new requests from staff will be presented at the next budget meeting. We will continually review the list throughout the process to see if any should be incorporated. Estimated General Fund Revenues There are several revenue sources that are still near historic lows but we do expect to see some additional revenue for development related fees. A change approved last year was increasing the amount of Municipal State Aid (MSA) that is allocated to maintenance. We anticipate maintaining the same allocation for 2012, mainly for preventative maintenance (seal coating). The allocation of the transfer from the electric utility is annually reviewed with the amount going to the equipment replacement fund. Staff is currently updating the 10-year forecast on equipment replacement needs and once updated a recommendation for the increase to the general fund will be determined. Other Items • Fuel price per gallon will start at $3.75 - we fully intend to use state contract pricing again. • Council Contingency - I anticipate starting with $75,000, the same amount as 2011. • Public works building - I don't anticipate any tax levy in 2012 if we move forward with phase II; a complete financing plan will be presented once the budget is further defined. • With the recently adopted action steps for 2011, you will be seeing some budget requests from the departments as they work toward achieving the goals and action steps over the next year. N:\Public Bodies\Ciry Council\Council RCA\Agenda Packet\06-13-2011\2012 budget 06132011.docx