5.0. SR 12-08-2003 - Laserfiche WebLink

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revenues and this year the same category only makes up 6.4% of the total. Within these two categories you can see the impact of the $644,138 reduction in local government aid and the increase in taxes in order to make up for this lost revenue. The proposed revenues for 2004 also includes the use of $112,000 from the fund balance. For the f~rst time in many years, the city is proposing to use part of the fund balance reserve to balance the budget for the upcoming year. Toxvard the end of 2003 everyone realized that our growth related revenues (building permits, plumbing/heating permits, and plan check fees) would exceed the budgeted amount and that no more adjustments in the 2003 budget would be required and that at the end of 2003 the overall budgeted revenues would substantially exceed expenditures. In a sense, you could say that the city is using part of the additional revenue that was realized in 2003 to balance the 2004 budget. The 2004 proposed expenditures includes two new employee positions and filling two current vacancies. Additionally, the 2004 budget includes the hiring of a Park and Recreation Director at about mid-year. The budget includes a 3% cost of living increase for the employees along with step increases in wages according to the adopted pay plan. Personal services amount to almost 75% of the budget and this is nearly identical to the percentage in the 2003 budget. The 2004 proposal includes no expenditures for capital outlay items and this is the same as what was in the 2003 budget. All of the capital outlay items in this operating budget are proposed to be funded with equipment certificates or equipment reserves. Regarding the expenditures by service activities, there are no changes of significance and public safety continues to be the largest with about 47% of the total. Supplemental Budgets In addition to the general fund, the city has special revenue fund budgets, enterprise fund budgets, and the EDA and HRA budgets. The EDA and HRA tax levies and budgets have akeady been approved and will not be part of this truth in taxation presentation. The special revenue budgets are either funded with tax revenues, reserves, or with monies generated by specific activities (i.e. ice arena). There are no changes of any significance in any of the special revenue budgets and the presentation on these budgets is expected to be brief. It should be noted that the equipment certificate total is funded over a number of years and that the storm sewer monies are for debt on past projects, the East Elk River project, and provides funds for some future projects. The enterprise fund budgets were recently reviewed by the City Council at the November 17, 2003 meeting. Similar to the special revenue budgets, there are no changes of significance in the enterprise fund budgets. Conclusion The truth in taxation presentation by staff will be similar to the one last year in December 2002. This presentation will include a review of revenues and expenditures by categories and will not include a discussion of individual departments or line item details unless requested by the City Council or the public. Handouts will be provided so that the public in attendance can follow along with the presentation. The handouts will include charts and graphs that display percentages and show relationships and trends, which is often more meaningful than actual budget figures.