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TO: <br /> <br />FROM: <br /> <br />DATE: <br /> <br />SUBJECT: <br /> <br /> MEMORANDUM <br /> <br />Mayor and City Council <br /> <br />Pat Klaers, City Administrator <br /> <br />August 9, 2004 <br /> <br />2005 Budget <br /> <br />Item 5.5. <br /> <br />Introduction <br />It is early in the process of developing the 2005 municipal budget but at this August 9 <br />worksession I want to provide a general overview of the 2005 financial situation and receive <br />some feedback from the City Council. The most important issues to discuss are staff <br />additions and taxes (the tax levy increase and the tax rate change). This feedback from the <br />City Council will help staff in putting together material for a Council budget worksession on <br />August 23, 2004. <br /> <br />2004 Budget Status <br />Before beginning a discussion on 2005 issues, a brief review of the 2004 budget and financial <br />status is in order. <br /> <br />Regarding 2004 revenues, the growth related programs need to be discussed. These are the <br />building permits, the plumbing/heating permits, and the plan check fees. The 2004 budgeted <br />amount for growth related revenues was approved at the exact level as the actual revenues <br />received in 2002. The budget amount for these three revenues for 2004 is $888,400. <br />Through June, the 2004 revenues for the building permits, plumbing/heating permits, and <br />plan check fees have already exceeded the budgeted amount for the entire year. The pace in <br />2004 for residential growth is exceeding the record year we experienced in 2003. <br /> <br />The 2004 revenue year end totals will exceed the budgeted amount; and this is good as it <br />appears that 2004 expenditures will also exceed the budgeted amount. However, the <br />expenditures will not exceed the budget by as much as the revenues will exceed the budget. <br />We know that we will have a positive year end balance and this is why it has been "easy" for <br />the City Council to hire a building inspector that was not budgeted and to use its' Council <br />Contingency on such items as the Fire Department grant, the Natural Resources Inventory, <br />and hiring a consulting f~rm to complete the apartment inspections. Overall, the 2004 budget <br />is in very good shape. <br /> <br /> <br />