Laserfiche WebLink
State Aid <br />If the proposed tax bill is approved, the estimated Local Government Aid (LGA) we can expect to <br />receive in 2018 is about $324,000. The LGA is budgeted in the Equipment Replacement Fund which <br />makes it easier to adjust and reprioritize equipment needs versus immediate General Fund operational <br />changes should LGA be eliminated or reduced. The transfer from ERMU is allocated to the General <br />Fund and Equipment Replacement Fund. <br /> <br />The city receives state aid that is apportioned for the fire relief association. In the past, the city has netted <br />in the General Fund the revenue received from the state with the payment to the fire relief association, <br />resulting in a net effect of zero. The correct reporting standard is to recognize the fire state aid as <br />revenue and the payment to the fire relief association as expenditure in the General Fund. So for 2018, <br />we will be budgeting for the fire state aid revenue with an offsetting expenditure in the fire department <br />for payment to the fire relief association. <br /> <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 internal services to those funds. We will <br />review the transfers to ensure they cover services used. The exception is the Liquor Fund transfer, which <br />is significantly higher to offset other operating expenditures. <br /> <br />Levels of Service <br />The preliminary budget will be drafted based on continuing the same level of service as in 2017. <br /> <br />Estimated General Fund Revenue <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 2018 building activities. <br /> <br />Tax Levy <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 /> <br />Other Items <br /> Fuel price per gallon will start at $2.50 – we intend to use state contract pricing again for 2018. <br /> The tax abatement levy will decrease approximately $30,000 due to three tax abatement <br />agreements ending in 2017. <br /> <br />Financial Impact <br />N/A <br /> <br />Attachments <br /> 2018 budget schedule <br /> <br /> <br /> <br /> <br />