The proposed 2011 city budget is available, and I feel good about it. I think you will too.
Before I get into the details, let me say thanks to City Administrator Tami Mayzik, City Clerk Jim Shelenske, Mayor Tom Zepecki, Finance Committee Chairman Pat Stoner and the department heads for all of their hard work in coming up with what I think is a sensible, fair and thoughtful budget — one that avoids much of the pain being felt by other communities, the county and state.
So here is some of the key information:
- The 2011 executive budget includes a tax levy increase of 1.95% — below the state-imposed city levy limit increase of 3%. The proposed city levy is $10,196,526, compared to the 2010 budget of $10,001,640.
- Total expenditures are projected to increase 0.6% from $19,043,365 to $19,158,448. This includes a 2% salary increase for union and non-represented employees (after no increase in 2010) and an 8.7% increase in health insurance premiums (even as we ask them to contribute 10% more to their premiums in 2011). Fuel budgets are also higher, and the fire hydrant rental fee — which the city pays to the Water Utility — is increasing 35% due to the water rate increase. We’re also budgeting for the purchase and maintenance of an emergency alert system in 2011, something I have pushed for as a way to keep residents better informed during situations like the flooding and water main break emergencies of the past year. One key reduction in expenses is our debt service payment, since the city did not do a borrowing in 2010.
- Total revenues are projected to decrease 0.2% to $9,750,378 from $9,769,739. Our state shared revenue payment is expected to remain the same as 2010, our transportation aids will increase by $63,000 and our connecting street payments will remain close to the same as this year. We’re also anticipating a reduction in municipal court revenues in 2011 due to the struggling economy.
- One significant revenue source, again, will be an expenditure restraint payment from the state for keeping spending increases below a certain threshold, for us 3% . The projected amount of this payment is $347,907. For purposes of this payment, our expenditure increase is 2.23% for 2011 — a number that gets to our “general fund” spending and does not factor in paramedic expenditures and debt service costs.
- The proposed budget also balances thanks in part to a transfer of $160,000 from the city’s “rainy-day” non-lapsing fund. This is the second straight year we’ll be shifting money from this fund to cover our budget, and it’s in large part due to continued abysmal rates of return on our investment income. As investment returns rebound (hopefully some day soon) we likely won’t have to continue these transfers. Until then, I am OK with it.
- Staffing levels remain the same as in 2010. We’re also adding an engineering intern to allow us to continue our sidewalk maintenance program.
You can see the draft budget on the city website here.
One point to keep in mind: Tax rate information is not yet available and won’t be until later in November. I’ll pass on that information when I know it, and that will allow you to calculate your estimated city tax bill for your property.
So, what’s next? The City Council held a budget information session on Wednesday and voted to published the proposed “executive” budget in the local newspaper. That will be done on Thursday, Nov. 4. A budget public hearing is scheduled for Monday, Nov. 29, at City Hall, and the City Council is expected to adopt the budget at its meeting the following night.
In the meantime, I’ll keep you posted on any new details that come up. Keep in mind that this is still a proposed budget, so the final numbers could, and likely will, change as we get a better handle on final 2010 revenues and expenses.
Of course, I’d like to know what you think of the proposed budget. Vote in the poll on the right-hand side of this page, post your comments below, and contact me anytime.
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