2.0. SR 08-23-2004 - Laserfiche WebLink

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~dug~st 23, 2004 ])age 3 of 5 Budget Memo City, Council will have to choose between some increases in additional staff or some increases in the supplies, other services/charges, and capital outlay/transfer categories. At this time, I ~vould lean more towards increases in the non-personal services areas as most departments need to "catch up" from the cuts that were made when we had a reduction in our LGA in 2003. Expenditures to note include the following: Information Technology - supplies and other s/c ~ Council contingency Building/Environmental - supplies and other s/c Police - supplies Fire- other s/c Streets - supplies and other s/c Snow removal - other s/c Engineering Recreation- other s/c ~ Transfers Out I plan to revie~v these and other changes in detail at the August 23 worksession. Personal services is the category that may generate the most discussion at the upcoming xvorksession. Based on the proposed revenue increase and the expenditure increase in the non- personal services categories, there is $556,850 available. (This is close to the $600,000 figure that I used during the August 9 worksession. On August 9, we also knew that this $600,000 "ballpark" figure ~vas not going to be sufficient.) Per the attached summary worksheet, before any new additional employees are added to the 2005 budget, the personal services category is projected to increase $647,350. This is the total increase for the annual wage/benefits for the unbudgeted employees that were hired in 2004, a 3% COLA and an insurance increase for employees in 2005, and for the wage increase approved by the City Council on August 9, 2004. This increase in personal services before 2005 new employees are added is higher than I initially anticipated; but in retrospect, it is not too surprising. The increase in personal services of $647,350 is about 11%. Also, the increases in personal services and non-personal services categories is slightly skewed due to the change in our building cleaning program. Cleaning used to be done by contracted employees (part of other services/charges category) and this changed in 2004 to be completed by part-me city employees. This is about a $60,000 shift. In total, before any new employees are added, the proposed 2005 expenditures are $9,002,900. This is a 14.3% or $1,127,500 increase. The gap between expenditures and revenues is $90,500. The gap is about 1% of the proposed budget. Some new employees are likely to be added in the 2005 budget. This will increase the budget gap. The attached staff additions page as provided by the Finance Department shows the annual expenses for various positions. At the August 9 worksession I indicated support to the City Council for 7 full-time and 2 part-time positions. Additionally, the City Council indicated that one of the full- time positions (Community Development Director) should be scheduled to start at mid-year. The