2017.09.12 WS Combined - Laserfiche WebLink

Home Browse Search

Street Debt The proposed 2018 street reconstruction costs include $115,900 for an internal loan payment and $115,000 for a new bonded debt payment from the general fund budget. Turnover Ratio The concept of a turnover ratio was developed and accepted by Council in 2015. Staff recognized that city budgets historically have assumed that all positions are filled 100% of the time. In practice, we have discovered there is some degree of staff turnover due to retirements, promotions, etc. In an effort to develop a tighter budget, staff analyzed what level of turnover the City has experienced over the last decade. With the exception of one year, the City historically has not spent all personnel dollars budgeted. Prior to the introduction of the turnover ratio, the City averaged savings in personnel of $216,500. Since then, the average savings has decreased to $73,800. Simply put, budgeting for some level of savings, due to staff turnover, results in a reduction of expenditures and therefore a reduction of impact on the tax levy. Staff recommended and Council approved using 1% as a reliable turnover ratio. This approach is substantiated by Bureau of Labor Statistics. For 2018, staff continues to factor in a turn-over ratio resulting in a budget cost reduction of $100,900. This line-item can be seen on the summary sheet of the General Fund under expenditures. CONCLUSION AND RECOMMENDATION New Brighton has had level spending for the past nine years. From 2011 to 2014, the City’s tax levy has been reduced by over eight percent even though cumulative inflation has increased by six percent in those same four years. The proposed 2018 levy increases are directed towards infrastructure, balancing the Golf Course budget, and affording the move of LGA out of the General Fund and into the Stormwater Fund and the Closed Bond Fund. The proposed 2018 Budget allocates resources in a way so as to augment front-line service employees again as in 2017, but in a very deliberate way. Median-valued homeowners would pay $845 for the year as a result of this budget and tax levy, which is only $19 a year more than the impact of the levy in 2011. The budget, as presented, addresses each of the Council’s strategic priorities as follows: • Overall spending is based on long-term financial plans developed by staff and approved by Council – Financial Sustainability • The 2018 Budget doesn’t rely on any reserve funds – Effective Service Quality • Service level employee staffing is addressed in this budget, as was in the 2017 Budget, with incremental adjustments – Workforce Engagement and Development • Median household city taxes will only be $19 more than taxes paid by the same homeowner in 2011. – Effective Service Quality It is the City Manager’s recommendation Council adopt the preliminary budget as proposed for 2018, and adopt the proposed 2018 tax levy of $8,661,170. Staff seeks Council’s direction on the budget and tax levy. Other budget meetings were held on August 16th, August 22nd, and September 5th, 2017. This year’s Truth and Taxation Hearing will be held on December 5, 2017 with final budget adoption scheduled for December 12, 2017. 7