Laserfiche WebLink
Street Debt <br />The proposed 2017 street reconstruction costs include $175,000 for an internal loan payment from the general <br />fund budget. <br />Turnover Ratio <br />The concept of a turnover ratio was developed and accepted by Council in 2015. Staff recognized that city <br />budgets historically have assumed that all positions are filled 100% of the time. In practice, we have discovered <br />there is some degree of staff turnover due to retirements, promotions, etc. In an effort to develop a tighter <br />budget, staff analyzed what level of turnover the City has experienced over the last decade. With the exception <br />of one year, the City historically has not spent all personnel dollars budgeted. Over ten years, the City has an <br />average savings in personnel of $191,552. In some years more is saved, in others less; and as mentioned before, <br />in 2004, the personnel budget was over-spent. <br />Simply put, budgeting for some level of savings, due to staff turnover, results in a reduction of costs and <br />therefore a reduction of impact on the tax levy. Staff recommended and Council approved using 1% as a <br />reliable turnover ratio. This approach is substantiated by Bureau of Labor Statistics. For 2017, staff continues to <br />factor in a turn-over ratio resulting in a budget cost reduction of $93,500. This line-item can be seen on the <br />summary sheet of the General Fund under expenditures. <br />CONCLUSION AND RECOMMENDATION <br />New Brighton has had level spending for the past nine years. From 2011 to 2014, the City’s tax levy has been <br />reduced by over eight percent even though cumulative inflation has increased by six percent in those same four <br />years. The proposed 2017 levy increases are directed towards infrastructure, balancing the Golf Course budget, <br />and affording the move of LGA out of the General Fund and into the Stormwater Fund and the Closed Bond <br />Fund. The proposed 2017 Budget allocates resources in a way so as to augment front-line service employees <br />44.0% <br />61.4%62.2%66.4%69.2%72.9%73.1%74.5%76.4% <br />83.3% <br />0% <br />10% <br />20% <br />30% <br />40% <br />50% <br />60% <br />70% <br />80% <br />90%*SHOREVIEWNEW HOPENew BrightonCRYSTALGOLDEN VALLEYRICHFIELD**ROSEVILLEWHITE BEAR LAKEFRIDLEYMAPLEWOODPercent  of Staffing Costs to Overall  <br />Budget <br />NEW BRIGHTON8