HomeMy WebLinkAbout20200518 - 2021 BudgetPreliminary 2021 Budget Discussion
May 18, 2020
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Overview
Budget Preparation Schedule
Current Economic Situation
Major Revenues
Major Expenditures
Goals and Priorities
Council Direction
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2021 Budget Preparation Schedule
May 18 – City Council Workshop
June 1 – Instructions to Departments
June 30 – Department Requests to City Administrator
July – Internal Department Budget Meetings
July 31 – City Administrator’s Budget Proposal
August – Finance Committee Budget Meetings
Sept 8 – City Council Sets Preliminary Tax Levy
Dec 7 – Truth In Taxation Hearing
Dec 21 – City Council Adopts Budget and Certifies Tax Levy
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Current Economic Situation
State Budget – State went from $1.5B surplus to $2.4B deficit (5/5/20)
Unemployment Filings – 36.5M claims (5/4/20)
Uncertain shape and timing of recovery
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Major Revenues
2020 Tax Rate 57.391% (levy $14,788,179)
Tax Capacity - $1,079,298 increase (4.76%)
LGA – identify one-time projects so less susceptible to cut in LGA
Tax Delinquency - experience during and following Great Recession (2007-2011)
5.3% to 8.4% delinquent each year
Would equal to $784K to $1.24M based on 2020 taxes
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Major Expenditures: Personnel
Personnel Costs - $13.9M
COLA (each 1% on Jan 1st) - $105K
Health (estimate 10% increase) - $138K
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Major Expenditures: CIP
Projects delayed in 2020…
Vermillion Corridor Project
HEDRA, other
Vets Field Improvements
2020 Mill & Overlay Program
Projects planned in 2021…
Pool House & Mechanicals
Lake Isabel Park
City Hall / Police Remodel
2021 Neighborhood Project
2021 Mill & Overlay Program
Sanitary Sewer Lining
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Major Expenditures: CEP
Projects delayed in 2020…
Fire Department study
Facilities study
Slide step replacement
New Zamboni
Public Works LED lighting
Accounting software upgrade
Police and Fire radios ERF
Network switches
Trail sealcoating
Trail reconstruction
Projects planned in 2021…
City Hall / Police boilers & HVAC
Accounting software upgrade
Fire Engine 1 replacement
Fire equipment
IT storage, computers, network
Parks vehicles, mower, trail rehab
Police radios
Police squads
Streetsweeper
Dump truck
Water meter replacement
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Goals & Priorities
Communication – Optimal Service – Respect for Resources – Enthusiasm
Common Themes from Before
Economic Development (eg: HEDRA, Vermillion Street)
Transportation (eg: pavement management program)
Housing (eg: new residential development)
Community Image (eg: tourism, maintain park assets)
Lifestyle & Recreation (eg: comprehensive parks plan)
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Council Direction
Communication – Optimal Service – Respect for Resources – Enthusiasm
Framework Going Forward
Maintaining Existing Assets (eg: roads, trails, buildings)
Fiscally Sustainable (eg: CIP/CEP, reduce ongoing costs, long-term perspective)
Uniquely Hastings (eg: parks & trails, downtown, Vermillion Street, City Hall)
Baseline Property Tax Rate / Levy – status quo
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