2020 City of Shakopee Budget

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GENERAL FUND The General Fund is used to account for revenues and expenditures necessary to carry out the basic functions of city government. Divisions within the General Fund include general government, public safety, public works and park and recreation. These basic functions include police and fire protection, planning, administration, etc. Appropriations are made from this fund annually. Revenues are recorded by source, i.e. taxes, intergovernmental, charges for services, etc. Expenditures are recorded by object and are primarily for day-to day operating expenses and equipment. Capital expenditures for large scale public improvements are accounted for within the Capital Projects Funds. General Fund budgets tend to be consistent from year-to-year. However, there are costs drivers that effect every department. Below are the 2020 General Fund cost drivers. Individual division narratives provide greater detail on variances specific to each division.  Overall wages increased 3%.  Health insurance rates for 2020 increased 6.5 percent.  Equipment rents were increased as a result of using estimated future replacement cost instead of actual purchase cost of the asset as the base in the calculation. As part of the four year phased change and increase of 25% was included in 2020.  Building, Park and Information Technology rents were increased as a result of updating cost drivers to ensure sufficient funding for future replacement costs.