10.2 SR 07-17-2023Request for Action
To
Item Number
Mayor and City Council =10.2
Agenda Section
Meeting Date
Prepared by
Work Session
I July 17, 2023
Lori Stich, Finance Manager
Item Description
Reviewed by
2024 Budget Overview
Cal Portner, City Administrator
Reviewed by
Joe Stremcha, Assistant City Administrator
Action Requested
Overview of 2024 budget.
Background/Discussion
Staff has developed their preliminary 2024 budgets and meetings with department directors and/or division
managers to review their preliminary budget requests were scheduled in June. All of this leads to the Council
adopting a maximum tax levy prior to September 30 and the final budget adoption in December.
Proposed Budget Schedule
■ July/August Budget Work Sessions — Council budget work session dates are as follows:
0 1" Budget Work Session — Monday, July 24 at 4:30 p.m.
0 21 d Budget Work Session — Monday, August 14 at 4:30 p.m.
o Additional Work Session (if needed) — Monday, August 28 at 4:30 p.m.
■ September 18 Regular Meeting — Approve maximum tax levy.
■ October/November — Continue budget, Capital Improvement Plan and tax levy discussion.
■ December 4 Regular Meeting — Present and adopt final budget and tax levy.
The preliminary 2024 budget is developed based on the following initial estimates and may be adjusted as we
progress through the budget process:
■ Same level of services as the 2023 budget.
Wages and benefits:
o Captain's union — contract is up for renewal in 2024.
o Sergeants union - 2.5% general wage increase plus market adjustment (top 30% of peers).
o Patrol union - 3% general wage increase plus market adjustment (top 30% of peers).
0 49ers union - percent provided to non -union employees or 2.75%, whichever is higher.
o Non -union employees - 4% increase.
o Insurance benefits - 5% increase.
o Workers' compensation — 10% average rate increase. As was the case last year, due to public safety
PTSD claims about a 30% rate increase is projected for police job classes.
■ Fuel — projecting $4.50/gallon (diesel) for 2024, compared to $5.25/gallon used in the 2023 budget.
The state fuel contract will continue to be used.
The Elk River Vision
A welcoming community with revolutionary and spa* ed resourcefulness, exceptional service, and POWERED
community engagement that encourages and inspires pi osperzty INAMIRE1
■ Property/liability insurance — we were able to keep premiums comparable to 2023 rates by increasing
deductibles and reducing our first -party cyber coverage limit. Premiums are affected by other factors
such as added amenities/exposures, a 28% increase in the experience rating and additional liquor
liability coverage for special events.
Financial Impact
N/A
Mission/Policy/Goal
To be good stewards where council and staff work to responsibly grow and develop a sustainable and
prosperous community.
Attachments
■ Preliminary 2024 General Fund Budget
CITY OF ELK RIVER
2024 PROPOSED BUDGET
GENERAL FUND
2020
2021
2022
2023
2024
% of
Increase/
ACTUAL
ACTUAL
ACTUAL
BUDGET
PROPOSED
Budget
(Decrease)
Change
General Fund Revenues:
Property taxes
$ 11,934,049
12,297,572
13,017,377
13,893,000
$15,504,350
71.9%
$1,611,350
11.6%
Other taxes
193,275
233,745
173,039
225,000
225,000
1.0%
-
0.0%
Licenses & Permits
665,519
1,015,529
939,133
1,004,300
1,008,200
4.7%
3,900
0.4%
Intergovernmental Revenues
607,367
581,927
657,106
634,000
639,000
3.0%
5,000
0.8%
Charges for Services
779,964
1,035,953
1,129,408
1,127,200
1,143,200
5.3%
16,000
1.4%
Fines
89,359
127,266
127,954
130,000
130,000
0.6%
-
0.0%
Other Revenues
278,453
297,915
335,594
275,000
315,000
1.5%
40,000
14.5%
Other Financing Source - Lease
-
-
225,719
-
-
0.0%
-
0.0%
Transfers In
2,613,943
2,281,960
2,599,306
3,201,500
2,601,500
12.1%
(600,000)
-18.7%
Total General Fund Revenues
17,161,929
17,871,867
19,204,636
20,490,000
21,566,250
100.0%
$1,076,250
5.3%
General Fund Expenditures
General Government:
Mayor & Council
141,884
161,522
180,733
203,750
214,050
1.0%
10,300
5.1%
Communications
282,556
334,651
368,036
451,550
485,300
2.3%
33,750
7.5%
Administrative Services
566,052
597,464
609,868
677,500
721,850
3.3%
44,350
6.5%
Human Resources
300,387
344,469
367,643
402,500
426,550
2.0%
24,050
6.0%
Elections
73,561
6,300
41,864
6,600
75,500
0.4%
68,900
1043.9%
Finance
597,788
620,548
696,918
717,950
763,850
3.5%
45,900
6.4%
Information Technology
501,899
454,648
652,096
614,450
723,500
3.4%
109,050
17.7%
Legal
232,017
244,402
270,650
275,000
275,000
1.3%
-
0.0%
Community Dev/Planning
554,689
578,245
479,845
486,250
485,100
2.2%
(1,150)
-0.2%
Facilities Maintenance
755,149
812,257
925,910
1,029,550
1,085,250
5.0%
55,700
5.4%
Energy City
22,307
23,922
24,541
48,000
49,050
0.2%
1,050
2.2%
Total General Government
4,028,289
4,178,428
4,618,104
4,913,100
5,305,000
24.6%
391,900
8.0%
Public Safety:
Police
5,734,695
6,338,212
6,909,469
7,418,350
7,555,250
35.0%
136,900
1.8%
Fire
1,243,609
1,514,752
1,733,540
1,842,700
1,997,850
9.3%
155,150
8.4%
Building Safety
498,824
489,072
610,684
583,600
625,500
2.9%
41,900
7.2%
Code Enforcement
80,360
86,316
76,049
117,500
126,000
0.6%
8,500
7.2%
Environmental
54,759
57,578
111,919
99,650
101,700
0.5%
2,050
2.1%
Total Public Safety
7,612,247
8,485,930
9,441,661
10,061,800
10,406,300
48.3%
344,500
3.4%
Public Works:
Street Maintenance
1,411,936
1,472,080
1,391,531
1,567,000
1,785,900
8.3%
218,900
14.0%
Snow Removal
284,921
336,707
366,282
360,000
416,000
1.9%
56,000
15.6%
Equipment Services
221,272
253,000
353,287
386,300
397,300
1.8%
11,000
2.8%
Engineering
336,587
396,165
426,794
458,200
489,150
2.3%
30,950
6.8%
Total Public Works
2,254,716
2,457,952
2,537,894
2,771,500
3,088,350
14.3%
316,850
11.4%
Culture & Recreation:
Park Maintenance
1,185,529
1,310,852
1,572,359
1,676,300
1,743,700
8.1%
67,400
4.0%
Recreation
661,903
648,970
761,741
917,400
826,900
3.8%
(90,500)
-9.9%
Sr. Citizen Programs
153,302
119,465
136,016
149,900
196,000
0.9%
46,100
30.8%
Total Culture & Recreation
2,000,734
2,079,287
2,470,116
2,743,600
2,766,600
12.8%
23,000
0.8%
Transfers Out
887,986
171,591
404,000
-
-
0.0%
-
0.00%
Total General Fund Expenditures $16,783,972 $17,373,188 $19,471,775 $20,490,000 $21,566,250 100.0% $1,076,250 5.3%
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