HomeMy WebLinkAbout[08] 2020 Budget
Council Agenda Item 8
MEETING DATE: September 5, 2019
AGENDA ITEM: 2020 Draft Preliminary Budget: Operations and Capital Equipment
SUBMITTED BY: Finance/Administration/Dept Heads
BOARD/COMMISSION/COMMITTEE RECOMMENDATION: None
PREVIOUS COUNCIL ACTION: Council provided 2020 budget initiatives, discussed staffing and
memberships and reviewed the engineer’s 5-year project plan at previous council meetings. The city
council contracted with Flaherty and Hood to assist with an organization and pay study in the summer of
2018. City council annexed a portion of the St. Joseph Township listed in the OAA agreement.
BACKGROUND INFORMATION: The proposed 2020 budget has been a work in progress as staff,
boards and commissions, and city council have been discussing the initiatives for the next year. For the
meeting, staff recommends discussing the preliminary draft based on the discussions so far. The pay
study and personnel policy draft is close to completion for the council’s review. Preliminary numbers
from the draft presented to the council in July were used to prepare the preliminary budget draft. A few
tweaks may occur before the preliminary budget is adopted later this month. Negotiations with staff and
unions may end with a few adjustments before the final budget adoption in December.
Also impacting the 2020 budget is adding the Jan. 2019 annexed property owners to the city budget. As
agreed upon by the Annexation agreement, services in the rural taxed area will remain the same as before
the annexation. The rural tax rate will change up or down as the urban tax rate changes. The non-
residential properties will incrementally increase to the full city tax rate over a six-year period.
The staffing budget includes hiring a Community Services Officer (CSO) and Recreations Director per
council’s request. Council agreed to hiring an additional full time maintenance worker in 2020. Staff is
also requesting a planning intern for the summer of 2020 to assist with the busy plan reviews. Budget
estimates for these new positions are as follows in the table below.
Position Benefits and Wages Other Budget Requirements
$68,995 $30,000
CSO
$82,000 $13,500
Recreations Director
$76,000 $3,500
Maintenance Worker
$4,845 $500
Planner Intern
The capital equipment budget is funded in part by two equipment certificates. The next certificate is due
in 2020 for an estimated issue amount of approximately $320,000. A summary of the pieces of
equipment to purchase with the 2020 equipment certificates is listed in the table on the next page.
2020 Equipment Certificate Budgeted
Equip Prior Equipment
Cost Funds Certificate
65,093.66 35,093.66 30,000.00
AD-1406
Computer Replacement
25,000.00 - 25,000.00
AD-2001
Admin Vehicle
Electronic Welcome
150,000.00 90,000.00 60,000.00
AD-1803
Sign
Squad Laptops
22,500.00 9,500.00 13,000.00
PD-1408
Surveillance Cameras
35,000.00 2,000.00 33,000.00
PD-1410
Squad Lease to Own
15,000.00 5,000.00 10,000.00
PD-1411
Street Sweeper
185,000.00 105,000.00 80,000.00
PW-1407
1575 Lawn Tractor
48,000.00 24,000.00 24,000.00
PW-1415
Utility Truck
50,000.00 17,000.00 33,000.00
PW-1403
595,593.66 287,593.66 308,000.00
The remaining capital equipment budget will be forthcoming along with the budget binders next week.
BUDGET/FISCAL IMPACT: $320,000 2020 Equipment Certificate
$252,340 2020 Additional Staff
ATTACHMENTS: Request for Council Action–Draft Preliminary Budget
REQUESTED COUNCIL ACTION: Discussion of the draft preliminary general fund budget,
including capital equipment purchases.