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Request for Action <br /> <br /> <br />To Item Number <br />Mayor and City Council 10.2 <br />Agenda Section Meeting Date Prepared by <br />Worksession June 5, 2017 Lori Ziemer, Finance Director <br />Item Description Reviewed by <br />2018 Budget Discussion Cal Portner, City Administrator <br />Reviewed by <br /> <br /> <br />Action Requested <br />Discuss 2018 budget process and provide feedback. <br /> <br />Background/Discussion <br />Staff has begun developing their preliminary 2018 budgets and budget meetings will soon be scheduled <br />with department directors and/or division managers to review their preliminary budget requests. At this <br />work session we will begin discussing the 2018 tax levy and budget parameters. All of this leads up to the <br />Council adopting a maximum tax levy prior to September 30, 2017. The levy certification deadline for <br />the EDA & HRA is proposed to change from September 15 to September 30. The final budget will not <br />be adopted until December. Most of the budgets will be discussed at meetings in July and August. <br /> <br />Proposed Budget Timeline (summary) <br /> June 5 Council Work Session – General 2018 budget discussion and process. <br /> July & August Work Sessions – Presentation to council of proposed budget & goals. <br /> August 21 Regular Meeting – Presentation of proposed enterprise fund budgets. <br /> September 18 Regular Meeting – Approve maximum tax levy. <br /> October & November – Continue budget, Capital Improvement Plan and tax levy discussion. <br /> December 4 regular meeting – Present final proposed budget; take additional public input; adopt <br />final budget and tax levy. <br /> <br />Consumer Price Index (CPI) <br />The CPI for the Midwest region went up 1.8% from April 2016 to April 2017, with motor fuel prices <br />rising 14.6% over the year. <br /> <br />Change in Net Tax Capacity <br />Last year the Net Tax Capacity (NTC) for the city increased 3.8%, consistent with the last few years. <br />Early spring estimates for 2017 indicate residential values increasing about 5.7%, commercial/industrial <br />decreasing .6%, and apartments increasing about 7%. Until updates are available from the county, we will <br />use a 3.5-4% increase in NTC as we begin the budget process. <br /> <br />Pay and Benefits <br />Pay and benefits will follow other labor agreements with cost of living adjustments. The 49ers labor <br />agreement is effective until December 31, 2017. <br /> <br /> <br />