FY 2020 Budget

best balance between the need to provide the best service to the residents of Spencer and the Council’s desire to maintain an affordable tax bill. As a reminder, staff does not have a crystal ball to fully determine what will be needed in all cases for all situations. Snowfall greater than average is a perfect example of this. If greater than average snowfall is experienced, or the timing of events requires greater amount of overtime, the snow removal budget will be impacted. For this example, it should be noted, that money allocated for other routine street maintenance will be reduced due to the redirection of employees time to snow removal. If we do miss a budget projection, city staff/administration will bring that to council’s attention and explain the need for an amendment to the current budget. City Council needs to remember that a missed projection due to unforeseen circumstances is not a failure on the staff’s part, but a reason why it is hard to budget 18 months in advance of the actual expenditures. There will always be unforeseen events that will have an impact on the budget. Overall, we have a lot to be thankful for. The city continues to experience growth in the property valuations, which enables us to maintain the tax levy. While some of this growth is the result of a re- evaluation of the existing property, there is also growth due to recent new construction that has occurred in the past few years. The city continues to budget conservatively which has allowed the city to build cash reserves to meet future emergencies and needs. If not for these cash reserves, the city would be looking at an increase in the levy to meet service demands. For example, in FY 2016, the city’s overall valuation increased just $18,000, which translated into $171 in new taxes for the general fund. In FY 2016, the city was able to tap into cash reserves in order to maintain a level tax levy. Our challenges compared to other rural, non-metro, governmental entities across the state seem small. Spencer has been blessed with a growing tax base, increased housing starts, and new commercial and industrial business looking to locate or expend in our community. All of this allows Spencer to continue to offer a great quality of life at an affordable rate to our residents. Budget calendar Date Who What August 24, 2018 Staff

Distribution of FY20-24 Capital Improvement Plan (CIP) revision worksheets CIP worksheets were due to Finance Department Distribution of FY19-20 budget request worksheets to departments Review of proposed FY20-24 CIP plan Budget worksheets due to Finance Department Public Works Committee to review respect budget requests Public Safety, Progress & Development and Finance & Personnel Committees meeting to review respective budget requests Hold public hearing to discuss proposed budget and tax levy for FY 2020 and approve

September 28, 2018

Staff

November 27, 2018

Staff

December 19, 2018

Council / Staff

December 21, 2018

Staff

January 28, 2019

Council / Staff

February 6, 2019

Council / Staff

March 4, 2019

Council

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