FY 2020 Budget

balance based on the fact that stock parts have been purchased but not utilized, the increasing amount of unused stock being purchased is of continued concern. Revenues Revenue for many of the city’s operations remains fairly consistent. Increase in revenue is primarily coming from rate increases, service demand increases or reimbursement rate increases. The city has seen steady growth in revenue received through the Road Use Tax. The revenues that make up the city’s allocation from Road Use Taxes are comprised of two state revenues. The first is the Road Use Tax Fund which is a dedicated highway user revenue, collected through a state excise tax on fuels. The second source of revenue is the TIME-21 fund. In 2008, this additional source of state revenue was established by changing certain vehicle registration fees and schedules and by increasing trailer and title fees. These two sources of revenues are combined to create the allocation received by the city on a per capita basis. The budget being proposed for Fiscal Year 2020 will increase rates for solid waste collection, sanitary sewer rates, and the city’s combined sewer initiative (CSI) fee. The following chart outlines the proposed fee increases and impact on the residents. If the budget is approved, the Council will need to formally adopt the increase in solid waste fees. The sanitary sewer and CSI fee increases have been previously adopted by the Council.

Current Rate $17.50

Proposed Rate

Monthly Impact**

Annual Impact**

Service

% Increase

$18.20

4%

$0.70

$8.40

Solid Waste Sanitary Sewer*

$8.95 $4.67 $3.34

$9.31 $4.86 $3.47

4% 4% 4%

First 1,00 gallons Next 49,000 gallons Over 50,000 gallons

$1.12

$13.44

* Sanitary Sewer rates are per 1,000 gallons of metered water usage Combined Sewer Initiative $15.00

$16.25

8.3%

$1.25

$15.00

TOTAL $36.84 ** The monthly and annual impact for sanitary sewer rates was calculated on the average residential use of 5,000 gallons per month. Debt Service The city levies approximately $1.08 per $1,000 of property valuation to pay existing General Obligation debt. The city has a current financial model that outlines existing debt and the levy required and also demonstrates when the city has the ability to incur additional General Obligation debt while having no impact on the overall debt levy. The current debt schedule shows rapidly declining General Obligation debt and the city has issued or plans on issuing debt in the coming years to maintain the debt levy. The budget, as proposed, plans on issuing up to $2 million in General Obligation notes to cover the acquisition and renovation of the new city hall facility. Projects that will require the need to issue general obligation debt are programmed into the budget as the levy allows. 2020 - 2024 Capital Improvement Plan (CIP) The CIP is a five-year plan to provide for the acquisition of equipment and the maintenance and construction of public facilities. The 2020-2024 is prepared as a standalone document and is prepared $3.07

14