9.3. SR 11-18-2013 - Laserfiche WebLink

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City of Elk Request for Action River To Item Number Mayor and City Council 9.3 Agenda Section Meeting Date Prepared by Worksession November 18, 2013 Tim Simon, Finance Director Item Description Reviewed by 2014 Budget Cal Portner, City Administer Reviewed by Action Requested Continue 2014 budget discussions. Background/Discussion General Fund Update: General Fund revenue currently exceeds our expenditures by$75,400. The only change relates to the new officer recently hired on November 4. Some options to consider in using the difference and achieve a balanced budget for 2014 would be as follows: • Write down the final tax levy by this amount. • Use a portion to fund some new storm water requirements. One item remaining to discuss is the city's contribution for health insurance. City Administrator Portner gave an update on our renewal. We currently have a 5% city contribution increase budgeted for 2014. With one-time federal funds remaining Council consensus was a one-time increase to 7.5 percent city contribution increase for 2014. An updated quick summary of the changes from 2013 —2014 preliminary General Fund expenditure budget is below: 2013 Adopted Budget $12,836,950 COLA 150,000 Staff adjustments (personal sheet 165,050 Seal coat* (moved to pavement mgmt. fund) (379,000) Sales Tax exemption 81,050 Inflation/Exp. Adjustments 1.2% 158,750 2014 Preliminary Budget $12,850,700 *_ $290,000 in state-aid maintenance revenue will follow to the pavement management fund. The preliminary budgeted expenditure of$12,850,700 is a .11%increase from 2013. Subtracting out the Information Technology position upgrade which has offsetting revenue ($31,000) from ERMU,the net is a .13% decrease from 2013. The current consumer price index (CPI) for the Midwest is just under 2% as of September, 2013. During the 2013 legislative session, the state allowed an exemption for sales tax on purchases for cities and counties which is similar to school districts and townships. Please note the law change did not exempt every purchase (ex. golf courses, some over the road vehicles, liquor stores, etc.) As a result of P a w E R E U 6 Y NaA f RE]