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Elk <br />River` <br />REQUEST FOR ACTION <br />TO <br />ITEM NUMBER <br />Mayor and City Council <br />6.4 <br />AGENDA SECTION <br />MEETING DATE <br />PREPARED BY <br />Work Session <br />November 13, 2012 <br />Tim Simon, Finance Director <br />ITEM DESCRIPTION <br />REVIEWED By <br />2013 Budget <br />Cal Portner, City Administrator <br />REVIEWED BY <br />ACTION REQUESTED <br />Update and review of 2013 budgets. <br />BACKGROUND /DISCUSSION <br />The last time we reviewed the General Fund Budget, we had a budgeted expenditure of $13,018,700, a <br />2.69% increase over 2012. With the adjusted amounts we reviewed at the last meeting, expenditures are <br />at $12,874,250, or 1.55% more than 2012. The 1.55% is primarily inflationary adjustments. The current <br />consumer price index (CPI) for the Midwest is just under 3% as of September 2012. <br />The proposed adjustments that we reviewed included a 0.5% employee turnover item which amounts to <br />$41,600. This amount is included in the Council Contingency as a negative Personal Services amount since <br />it affects numerous department budgets. The Council Contingency will include $50,000 for operations <br />and the negative employee turnover amount. <br />Attached is the Council Contingency Budget worksheet with the details. <br />The property tax levy is still proposed at $10,275,815, the same amount as in 2012. The proposed 2013 <br />property tax levy remains lower than the amount levied in 2007. <br />The 2013 proposed budget and levy impact on taxpayers with a home at the median value of $152,200 is <br />a city tax decrease of 9.21%. The median value home experienced a value decrease of 10.94% from 2012. <br />The complete updated General Fund detail budget is included in Drogbox under Council Information. <br />We are still tracking two items, employee health insurance opt out waiver numbers and pricing for the <br />state fuel contract. <br />We budgeted for an average diesel and unleaded price of $3.25 per gallon, including taxes. We use <br />approximately 83,400 gallons per year. If the state fuel contract is locked in at $3.00 per gallon we would <br />decrease the budget by approximately $21,000. <br />The option to waive out of the city's group health insurance plan was recently approved with a monthly <br />incentive of $300, providing the employee can show proof of existing coverage. The incentive could <br />P 0 f E R E R R i <br />N: \Public Bodies \City Council \Finance \Tim\ 2012 \budgetstaffreport01113.docx INAWR <br />