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2% or slightly more, and apartments increased about 4%. Based on the different tax capacity rates each <br /> property types (1% Res. vs. 1.5-2% C/I) the NTC percentage is adjusted. This will likely change as more <br /> accurate estimates are available before the final levy is adopted. The county is still waiting on state utility <br /> assessment values. For planning purposes we will use a 4.5% NTC to begin the budget process. <br /> Pay and Benefits <br /> Both labor contracts expire on December 31, 2015, and negotiations will open this fall. Place holders will <br /> be added for nonunion staff pay and benefits. <br /> State Aid <br /> We are expected to receive Local Government Aid (LGA) although we have not yet received certified <br /> amounts. The amount is expected to be similar to 2015 at$225,894. We propose to continue budgeting <br /> LGA in the Equipment Replacement Fund with the offsetting amount from ERMU (transfer-in) in the <br /> General Fund. As you may recall, the transfer from ERMU is allocated to the General Fund and <br /> Equipment Replacement Fund. If LGA is eliminated or reduced, as in the past,it is easier to adjust our <br /> equipment needs and reprioritize replacements versus immediate General Fund operational changes. <br /> Transfer In <br /> Transfers are made each year to the General Fund from the Waste Water,Liquor, Storm Water, Garbage, <br /> EDA and HRA funds to cover costs associated with providing services to those funds. We will review <br /> the transfers to ensure they cover services used. The exception is the Liquor Fund transfer,which is <br /> significantly higher to offset other operating expenditures. <br /> Levels of Service <br /> The preliminary budget will be drafted based on continuing the same level of service as in 2015. <br /> Estimated General Fund Revenues <br /> Most revenue line items are stable and consistent with last year. We continue to monitor building activity <br /> and revenue and will make adjustments as we get updates on newly planned 2016 building activities. <br /> Tax Lew <br /> The city administrator will propose a balanced budget. At this point we should just have some general <br /> discussions about the tax levy expectations as other revenues are relatively consistent and programmed <br /> conservatively. <br /> Other Items <br /> • Fuel price per gallon will start at$3.00—we intend to use state contract pricing. <br /> • Council Contingency—We anticipate using a 0.5-1% employee vacancy rate. <br /> Financial Impact <br /> N/A <br /> Attachments <br /> ■ 2016 budget schedule <br /> N:APublic Bodies\Agenda Packets\07-06-2015\Final\x10.4 Budgetmemo 0706.docx <br />