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E04y1� ,.,�� Request for Action <br /> River <br /> To Item Number <br /> Mayor and City Council 10.4 <br /> Agenda Section Meeting Date Prepared by <br /> Work Session November 2, 2015 Tim Simon, Finance Director <br /> Item Description Reviewed by <br /> 2016 Budget Update Cal Portner, City Administrator <br /> Reviewed by <br /> Action Requested <br /> Continue 2016 budget discussion. <br /> Background/Discussion <br /> Over the past several months, staff presented the budget requests and related goals for each department. <br /> General Fund Update <br /> On September 21, the Council approved a maximum levy change of 2.88%without the quiet zone levy <br /> line item. Since then, staff has reviewed and adjusted for several items bringing the levy change to 1.54%. <br /> A quick summary of the changes from 2015 —2016 proposed General Fund expenditure budget with <br /> proposed adjustments is below: <br /> 2015 Adopted Budget $13,312,800 <br /> COLA 2% or by union contract 175,900 <br /> Staff adjustments (personnel sheet 0 <br /> Health Insurance/Pension changes (PERA) 97,000 <br /> Inflation/Exp. Adjustments <.6% 78,650 <br /> 2016 Preliminary Budget $13,664,350 <br /> The city tax rate is projected to decrease from 47.19% to 46.0% for 2016,which is subject to change <br /> pending any final adjustments from the county assessor on property values/final adjustments. <br /> Other items: <br /> • Staff requested to add$500 to the library budget part-time pay to account for staff taking minutes <br /> during library meetings. <br /> • ERMU requested their payment in lieu of taxes (PILOT), currently 3% of Elk River electric sales, <br /> to increase to 4% of Elk River electric sales and not donate electricity to the non-revenue <br /> producing city buildings (City Hall, Public Safety, Fire, Library etc.) resulting in an expenditure <br /> increase of approximately$250,000 spread among the departments in Utilities line items with an <br /> offsetting revenue increase. <br /> Financial Impact <br /> N/A <br /> POWERED 6T <br /> Template Updoted 4/14 INAMIRE1 <br />