HomeMy WebLinkAboutItem 03.cCity of Lakeville
Finance Department
Memorandum
To: Mayor and Council
Justin Miller, City Administrator
From: Jerilyn Erickson, Finance Director
Date: June 22, 2015
Subject: 2016 Budget / 2016-2020 Capital Improvement Program Preview
The 2016 budget process is underway. Departments have submitted their budget requests
for operations, capital and personnel. Finance staff is conducting an initial review of the
budget requests. Justin, Jerilyn and Allyn will be meeting with department directors and
supervisors to review the requests further.
The following table outlines a process and timeline which will encourage complete and
comprehensive City Council discussion of all salient issues associated with preparing the 2016
budgets and the 2016-2020 Capital Improvement Program:
June 22 Workshop – General Direction for Tax Levy, Budget and CIP
June/July Administration/Finance meet with Departments
July 27 Council Workshop – Review Draft Capital Improvement Program
• Transportation
• Utility
• Parks and Recreation
• Facilities
• Equipment Plan
Aug 24 Workshop – Review Preliminary Tax Levy and Budget
Sept 14 Workshop – TENTATIVE – Review Preliminary Tax Levy and Budget
Sept 21 Meeting – Adopt Preliminary Tax Levy and Announce Public Budget Meeting Date
Sept 28 Workshop – Budget Review
Oct 26 Workshop – Budget Review
Nov 23 Workshop – Budget Review
Dec 7 Meeting – Public Budget Meeting (Truth in Taxation)
Dec 21 Meeting – Adopt 2016 Budget, 2016 Tax Levy and 2016-2020 CIP
Market Valuation
Taxable market values have increased $291 million or 5.3% from 2015 to 2016, of which
approximately $131 million is from new construction. Based on the 2015 tax rate, new
construction will generate about $539,000 in property taxes. This equates to about 2.2% of
the current property tax levy.
Personnel
• All labor contracts expire as of 12/31/2015.
• New positions requested:
o Street Dept –Maintenance II
o Parks Dept – Maintenance II
o Operations/Maintenance Dept – Forester (part-time)
o Recreation Dept – Program Assistant (part-time)
o Utility Dept – Maintenance II (non-General Fund)
o Police Dept – Officer
o Police Dept – Technology Technician
Commodities/Other Charges
Staff will be reviewing expenditure requests taking into account historical expenditure data
as well as inflationary pressures.
Capital Outlay
Staff is striving to consolidate the equipment requests into one Equipment Plan which
projects replacements as well as new equipment needs.
Debt Service
The 2015A bonds will be sold in July. The tax levy impact was estimated at a 1.5% increase for
2016. Staff will be reviewing fund balances for all debt service funds to determine if the 2016
debt service levy can be adjusted.
Revenues
Staff will be reviewing revenues taking into account historical revenue data and
conservatively projecting 2016 activity.
Fund Balance
The Fund Balance Policy states that the City will endeavor to maintain an unrestricted fund
balance in the General Fund of an amount not less than 40% and not greater than 50% of the
next year’s budgeted expenditures of the General Fund. Staff will provide projections on fund
balance levels during the budget review process.
Council Direction
Staff is seeking direction regarding the 2016 property tax levy and the proposed calendar.