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The preliminary budget proposed here includes only operating expenses required to continue at the current service levels – meaning no new capital outlay, no new or expanded programs, and no new employees have been added to date. There are a few exceptions that are being rolled forward from Fiscal Year 2025 or that have been added to address immediate needs, and these will be highlighted within the funds that carry those expenses. Only funds that account for expenses related to regular operations are included here. • General Fund • Belgrade Parks, Trails, and Recreation District • Library Fund • Planning Fund • Senior Citizen’s Center Fund • Urban Renewal District Fund • Building Inspections Fund • Street Maintenance Fund • Water Fund • Wastewater Fund • Facilities Maintenance Fund • Fleet Maintenance Fund The remaining funds will be presented as part of the final budget in the coming months. The most significant change included in the preliminary budget is a 5% salary increase for staff, as well as adjustments related to two new union contracts. Union contracts are new for the city. While one contract has been finalized, the other is pending approval. Details of the financial impact of both contracts will be shared in the presentation of the final budget. With salary and benefits accounting for nearly 70% of the city’s operating expenses, much of the cost increase reflected in the preliminary budget falls within this category. The overall impact of this increase will be discussed in detail during the public hearing presentation. The information presented here is based on the best available information to us at this time. Much of what is included here is likely to change as we obtain more accurate support for revenue estimates and will be adjusted for presentation in the final budget. The initial presentation of the preliminary budget does not include significant adjustments for the new fees and fee adjustments included in the recently adopted Master Fee Schedule. The time between adopting the fee schedule and presenting the preliminary budget was limited, and Finance would prefer to take the time to analyze the budgetary impact of the changes and present those with the final budget proposal. FISCAL YEAR 2026 PROPOSED OPERATING BUDGET ---PAGE BREAK--- TAX REVENUE & MILL LEVY ESTIMATES Certified property values are not required to be provided to taxing entities until August 7th, or as soon as possible thereafter. For the preliminary budget, Finance used a 6% increase in taxable value to form an estimated mill levy. The inflation adjustment for FY2026 is set at 2.11%. Going forward, the city will be required to provide a comparison of the previous year’s tax per $100,000 of Value with an estimate for the upcoming year in the preliminary budget. General Mill Levy City Planning Mill Levy Rural Planning Mill Levy Total Taxable Value 42,614,869.00 42,614,869.00 66,155,386.00 Newly Taxable Value 2,873,434.22 2,873,434.22 1,293,898.54 Tax Increment (TIF) Value 1,843,385.00 1,843,385.00 - Inflation Adjustment 2.11% 2.11% 2.11% General City Planning Rural Planning Total Mill Levies Prior Year Revenue 2,308,670.00 72,237.00 108,828.00 Inflation Adjustment 48,712.94 1,524.20 2,296.27 52,533.41 Adjusted Ad Valorem 2,357,382.94 73,761.20 111,124.27 Total Taxable Value per Mill 42,614.87 42,614.87 64,861.58 TIF Value per Mill (1,843.39) (1,843.39) - Taxable Value Per Mill 40,771.48 40,771.48 64,861.58 Newly Taxable (2,873.43) (2,873.43) (1,293.90) Adjusted Taxable Value per Mill 37,898.05 37,898.05 63,567.68 Current Year Calculated Mill Levy 62.20 1.95 1.75 65.90 Current Year Ad Valorem Revenue Estimate 2,536,119.97 79,353.78 113,386.17 2,728,859.92 Library Fixed 8.00 326,171.87 Library Debt Service 35.52 1,513,836.00 Public Safety 68.00 2,772,460.91 Total Fixed Mill Levy 111.52 4,612,468.78 Permissive Medical Levy 15.13 616,840.11 Total Annual Mill Levy 192.55 7,341,328.70 Permanent Mill Levies Voted Mill Levies Permissive Medical Levy Total Mill Levy FY 2025 Levy per $100,000 of Value 71.11 106.13 10.43 187.67 $96.00 $143.28 $14.08 $253.35 FY 2026 Levy per $100,000 of Value 65.90 111.52 15.13 192.55 $88.96 $150.56 $20.42 $259.94 Variance (5.21) 5.39 4.70 4.88 ($7.04) $7.28 $6.34 $6.59 IMPACT OF TAX CHANGES ON $100,000 OF PROPERTY VALUE ---PAGE BREAK--- 1000 – GENERAL FUND The General Fund accounts for all financial transactions not required to be accounted for in another fund. All tax revenues and other revenues not required by law or other City Council action to be accounted for in another fund are accounted for here. While the fund statement above shows a 100% increase in General Fund revenue, this is not entirely accurate. With the conversion to new software, we no longer book the Public Safety Mill Levy to a separate fund and transfer those tax receipts to the General Fund. Combined, the two tax sources are currently expected to increase by 8% for Fiscal Year 2026. However, this is the preliminary estimate, and more accurate estimates will be established in early August when certified property values are received from the Department of Revenue. HISTORY 2024 Actual 2025 Budget 2025 Revised Beginning Fund Balance 1,272,903 1,272,903 1,861,285 1,731,975 Revenue Taxes 2,716,563 2,939,327 2,954,909 5,916,283 100% Licenses & Permits 132,289 150,500 136,969 140,800 3% Intergovernmental Revenue 1,595,064 963,121 1,013,925 1,006,020 Charges for Services 160,107 172,947 172,747 178,374 3% Fines & Forefeitures 299,723 293,000 329,000 315,000 Miscellaneous Revenues 89,319 34,000 99,084 45,000 -55% Investment Income 161,805 15,000 100,000 100,000 0% 5,154,870 4,567,895 4,806,634 7,701,477 60% Other Financing Sources Transfers In 0% Transfer - 2210 Parks District Fund 61,985 131,019 131,019 109,768 -16% Transfer - 2225 Library Fund 119,652 120,814 120,814 98,345 -19% Transfer - 2250 Planning Fund 393,902 302,809 302,809 274,279 Transfer - 2280 Senior Citizens Fund 40,606 40,606 35,109 -14% Transfer - 2300 Public Safety Mill Levy Fund 2,396,995 2,589,163 2,514,284 - -100% Transfer - 2310 Urban Renewal District Fund 172,734 84,899 84,899 75,581 -11% Transfer - 2372 Permissive Medical Levy 373,642 278,187 278,187 392,116 41% Transfer - 2394 Building Code Fund 407,251 294,032 294,032 315,318 7% Transfer - 2397 CDBG 1993 Fund 86,576 - - - 0% Transfer - 2550 Street Maintenance Fund 1,450 19,362 19,362 69,950 261% Transfer - 3400 SID Revolving Fund - 100,000 100,000 - -100% Transfer - 4010 Capital Improvement Fund 324,821 - - - 0% Transfer - 5210 Water Operations Fund 860,777 498,314 498,314 482,056 Transfer - 5310 Wastewater Operations Fund 964,501 608,641 608,641 508,882 -16% 6,164,286 5,067,846 4,992,967 2,361,403 -53% Total Resources 12,592,059.00 10,908,644 11,660,886 11,794,855 1% PROJECTED BUDGET 2026 Budget ---PAGE BREAK--- Another change impacting the anticipated tax revenue is related to library revenue. For some time, a portion of the city’s general mill levy has been dedicated to the library. This is separate from the fixed eight mills dedicated to the library, and it appears that no official action was taken to devote this portion of the general levy to the library. Additionally, ten percent of the city’s state entitlement payments have been going to the library. These revenues will now be recorded in the General Fund, and the General Fund will transfer the exact amount required to support the library’s operations. The transfers into the General Fund shown here reflect offsets to expenses incurred by other funds, which are recorded in the General Fund, and will be adjusted as the final budget is developed. Operating expenses in the General Fund have increased by 2% when compared to 2025 year-end estimates. Expenses for Fiscal Year 2025 year-end were decreased mostly due to significant salary savings from vacant positions throughout the fund. Other financing sources include not only standard support for engineering, facilities, fleet, and the volunteer fire pension, but also contributions to the operating budgets of the library, planning, senior center, and street maintenance funds. Each of these funds is currently not expected to be able to HISTORY 2024 Actual 2025 Budget 2025 Revised Expenses City Council 84,096 176,842 257,034 175,249 -32% City Court 443,427 492,908 469,551 477,394 2% City Manager's Office 1,246,826 799,431 761,603 773,206 2% Financial Services 1,075,272 907,819 1,054,530 979,967 Elections 6,997 20,000 20,000 20,000 0% Human Resources 335,246 402,918 381,891 362,278 Legal Services 133,223 509,784 639,361 640,664 0% Technology 984,336 1,174,428 1,184,756 1,190,178 0% Police 4,442,631 4,184,354 3,834,520 4,079,214 6% School Resource Officer 291,128 231,890 227,455 229,053 1% Code Enforcement 172,859 202,314 176,742 231,093 31% 9,216,041 9,102,688 9,007,443 9,158,296 2% Other Financing Uses Transfer - 2225 Library Fund - - - 196,144 0% Transfer - 2280 Senior Citizens Center 160,790 118,891 118,891 10,437 -91% Transfer - 2550 Street Maintenance 207,212 287,268 287,268 129,965 -55% Transfer - 4010 Capital Improvement Projects - 60,000 60,000 - -100% Transfer - 5210 Water Operations - 80,291 80,291 - -100% Transfer - 5310 WasteWater Operations - 52,910 52,910 8,238 -84% Transfer - 6009 Facilities Maintenance 283,639 258,869 258,869 303,025 17% Transfer - 6010 Fleet Services 826,608 25,954 25,954 127,892 393% Transfer - 7050 Volunteer Fire Retirement 36,484 37,285 37,285 40,771 9% 1,514,733 921,467 921,468 816,471 -11% Ending Fund Balance 1,861,285 884,489 1,731,975 1,820,087 5% PROJECTED BUDGET 2026 Budget ---PAGE BREAK--- support its operating budget with its own revenue sources. All of these funds are shown with a zero fund balance to ensure the use of the restricted funding sources first and to reduce the impact on the General Fund. 2210 - BELGRADE PARKS, TRAILS & RECREATION DISTRICT The Parks District Fund accounts for the revenue and expenses of the Belgrade Parks, Trails & Recreation District. This budget goes through a separate budget approval process involving the Parks District Board, the County Commission, and the City Council and is presented here as a starting point for that process but is not the District’s adopted budget until it has been approved by all required parties. Parks District revenue comes from a special assessment collected by Gallatin County and distributed to the City. Current estimates suggest a 12% possible increase in assessment revenue for Fiscal Year 2025. Operating expenses are expected to increase 6% for the upcoming fiscal year. This increase includes a pay increase for all staff, as well as more funding for materials and park maintenance. Other Financing Uses for this fund include a transfer to General Fund for support services (finance, technology, administrative), a transfer of unrestricted fund balance to the Parks Capital Improvement Fund for use on future park improvements, transfers to water and wastewater for support services HISTORY 2024 Actual 2025 Budget 2025 Revised Beginning Fund Balance 4 131,484 121,944 259,619 Revenue Miscellaneous 1,352,621 1,584,553 1,580,000 1,763,356 12% Investment Income (887) 2,000 2,000 2,000 0% 1,351,734 1,586,553 1,582,000 1,765,356 12% Total Resources 1,353,651 1,718,037 1,703,944 2,024,975 19% Expenses Parks & Recreation 421,626 1,150,239 991,551 1,051,219 6% 421,626 1,150,239 991,551 1,051,219 6% Other Financing Uses Transfer - 1000 General Fund 61,985 131,019 131,019 109,177 -17% Transfer - 4011 Parks Capital Improvements Fund 331,577 252,322 252,322 676,000 168% Transfer - 5210 Water Operations 96,319 20,073 20,073 12,243 -39% Transfer - 5310 Wastewater Operations 5,622 5,622 6,309 12% Transfer - 6009 Facilities Fund 11,200 23,078 23,078 40,398 75% Transfer - 6010 Fleet Services Fund 309,000 20,660 20,660 22,521 9% 810,081 452,774 452,774 866,649 91% Ending Fund Balance 121,944 115,024 259,619 107,108 -59% PROJECTED BUDGET 2026 Proposed ---PAGE BREAK--- provided by the Engineering and the use of the Public Works Administrative Assistant as well as transfer for facilities and fleet maintenance. 2225 – BELGRADE COMMUNITY LIBRARY The Library Fund accounts for all the revenues and expenditures the Belgrade Community Library incurs. Revenues for the Library Fund are shown to decrease by 40%. However, this is not a true decrease. It is a realignment of how the revenues are recorded as discussed in the General Fund section of this summary. A portion of the general mill levy and 10% of the state entitlement revenue will no longer be allocated directly to the library fund, and instead, a transfer of only the amount required to support the library operations for that year will be made. While the Library tax collections and the county’s contribution provide a consistent revenue source, many of the library’s smaller revenue sources are heavily dependent on user fees or contributions and HISTORY 2024 Actual 2025 Budget 2025 Revised Beginning Fund Balance 636,703 339,723 405,345 319,399 -21% Revenue Taxes 531,847 511,567 520,100 329,172 -37% Intergovernmental Revenue 309,888 388,730 436,879 239,700 -45% Charges for Services 4,748 2,700 3,305 1,200 -64% Fines & Forefeitures 3,100 1,450 2,320 1,450 -38% Miscellaneous Revenues 79,951 50,000 71,360 50,000 -30% Investment Income 6,916 2,500 2,500 2,500 0% 936,450 956,947 1,036,464 624,022 -40% Other Financing Sources Transfer - 1000 General Fund - - - 196,144 0% Transfer - 2372 Permissive Medical Levy 61,334 61,365 61,365 48,955 -20% 61,334 61,365 61,365 245,099 299% Total Resources 1,634,487 1,358,035 1,503,174 1,188,520 -21% Expenses City Library 817,744 886,518 743,924 828,247 11% 817,744 886,518 743,924 828,247 11% Other Financing Uses Transfer - 1000 General Fund 119,652 120,814 120,814 98,345 -19% Transfer - 4020 Library Capital Improvement Fund 250,000 173,189 173,189 - -100% Transfer - 6009 Facilities Maintenance Fund 40,734 145,848 145,848 261,927 80% Transfer - 6010 Fleet Services 1,012 - - - 0% 411,398 439,851 439,851 360,272 -18% Ending Fund Balance 405,345 31,666 319,399 0 -100% PROJECTED BUDGET 2026 Budget ---PAGE BREAK--- donations. These types of revenue are not guaranteed and estimates are usually lowered for budget out of caution and to allow some flexibility if estimates are not met. Each donation received by the library is assigned a specific purpose and related expenses are tracked to ensure that donations only fund that specific purpose and that donated funds are not exceeded. The proposed preliminary budget for the Library Fund includes an 11% increase in operating expenses from the Fiscal Year 2025 year-end. This includes a pay increase for staff, as well as increased funding for library operations. This increase would be significantly higher. However, the library FTE count was reduced by one to fund an additional FTE in the Facilities department, providing a dedicated custodian for the library. The transfer to the facilities fund from the library has increased by 79%. This is a combination of the new custodian position and the increased costs associated with operating the new facility. 2250 – PLANNING FUND Planning includes the city limits and Belgrade’s 4.5-mile planning jurisdiction. The Planning Department administers subdivision and zoning regulations, as well as a myriad of short- and long-range planning policies. This fund accounts for the revenues and expenditures related to these functions. Similar to the Library Fund, a significant portion of Planning Fund revenue comes from service charges and several variables outside of the city’s control impact these revenue collections. Economic conditions and development timelines, among other things, could change from what is currently expected, resulting in lower revenue collections therefore, we budget these conservatively. However, it appears that the revenue projections for Fiscal Year 2025 were not conservative enough. As of the end of May, only 44% of the original estimated revenue has been collected. It is highly unlikely that the fund will recover the remaining 56% of the anticipated revenue within the next few weeks. The projection for year-end has been reduced, and the fund is currently not self-supporting. It will require contributions from other funds to support the operational costs of the planning department. A transfer of $362,791 is being made from the administrative impact fee to fund these functions until FY2027. This is a one-time funding source and will not be available to adjust for future funding shortages. To help offset the revenue shortage, the Planning Permit Technician position has been eliminated. Expense budget cuts of approximately $100,000 were made in both Fiscal Year 2025 and Fiscal Year 2026 to mitigate the impact. Ideally, this issue will be resolved before the final budget is adopted. Finance will provide updates on the fund’s progress throughout the budget process. ---PAGE BREAK--- 2280 – SENIOR CITIZENS CENTER FUND The mission of the Belgrade Senior Center is to promote Friendship and provide nutritional, social, recreational, educational, health and fitness, and information services for individuals aged 50 and older in Belgrade and the surrounding Gallatin County area. Revenues for Fiscal Year 2026 are currently anticipated to decrease by 15% from the 2025 fiscal year- end. The General Fund is only expected to contribute $10,437 for next fiscal year. Expenses here are proposed at an 5% increase from the revised 2025 budget. Largely due to the planned pay increase for staff. HISTORY 2024 Actual 2025 Budget 2025 Revised Beginning Fund Balance 895,990 366,061 318,752 325,766 2% Revenue Taxes 179,865 190,124 193,962 194,299 0% Intergovernmental Revenue 15,614 16,000 16,277 17,300 6% Charges for Services 240,990 318,000 213,630 250,000 17% Miscellaneous 10,025 - - - 0% Investment Income 8,062 4,000 2,500 4,000 60% 454,556 528,124 426,369 465,599 9% Other Financing Sources Transfer - 2310 Urban Renewal District 44,730 - - 21,481 0% Transfer - 2372 Permissive Medical Levy 35,071 28,637 28,637 32,149 12% Transfer - 2392 CDBG 1992 Fund 19,171 - - - 0% Transfer - 2394 Building Code Fund 146,800 94,820 94,820 136,569 44% Transfer - 2399 Impact Fees - - 362,791 - -100% 245,772 123,457 486,248 190,199 -61% Total Resources 1,596,318 1,017,642 1,231,369 981,563 -20% Expenses Planning 537,691 665,445 556,863 660,116 19% 537,691 665,445 556,863 660,116 19% Other Financing Uses Transfer - 1000 General Fund 393,902 302,809 302,809 274,279 Transfer - 2392 CDBG 1992 Fund 19,171 - - - 0% Transfer - 4010 Capital Improvements Fund 280,000 - - - 0% Transfer - 6009 Facilities Maintenance Fund 20,450 45,931 45,931 44,829 Transfer - 6010 Fleet Services Fund 26,352 - - 2,339 0% 739,875 348,740 348,740 321,447 Ending Fund Balance 318,752 3,457 325,766 0 -100% PROJECTED BUDGET 2026 Proposed ---PAGE BREAK--- 2310 – URBAN RENEWAL DISTRICT FUND The Urban Renewal District is funded from Tax Increment Financing and provides for re-development of the City’s downtown area. The Economic Development Director position has been reclassified to the Director of Community and Economic Development and the associated expenses are recorded in the Community Development funds with a transfer to support a portion of the Director’s salary. The Urban Renewal District Fund will be purchasing a piece of downtown property during Fiscal Year 2026. HISTORY 2024 Actual 2025 Budget 2025 Revised Beginning Fund Balance 7,280 82,222 78,399 110,383 41% Revenue Licenses & Permits 3,225 3,000 3,000 4,000 33% Intergovernmental Revenue 32,582 44,500 44,500 42,500 Charges for Services 48,751 43,900 63,190 55,900 -12% Miscellaneous Revenues 151,682 106,500 192,109 155,000 -19% Investment Income 698 700 700 700 0% 236,938 198,600 303,499 258,100 -15% Other Financing Sources Transfer - 1000 General Fund 159,270 118,891 118,891 10,437 -91% Transfer - 2372 Permissive Medical Levy 27,836 20,455 20,455 24,699 21% 187,106 139,346 139,346 35,136 -75% Total Resources 431,324 420,168 521,244 403,619 -23% Expenses Senior Citizens Center 318,863 326,222 316,915 333,669 5% 318,863 326,222 316,915 333,669 5% Other Financing Uses Transfer - 1000 General Fund 28,562 40,606 40,606 35,109 Transfer - 6009 Facilities Maintenance Fund 5,500 49,600 49,600 32,503 -34% Transfer - 6010 Fleet Services Fund - 3,740 3,740 2,339 -37% 34,062 93,946 93,946 69,950 -26% Ending Fund Balance 78,399 - 110,383 -100% PROJECTED BUDGET 2026 Proposed ---PAGE BREAK--- 2394 – BUILDING INSPECTIONS FUND The Building Department enforces building-related codes, including building, plumbing, mechanical, electrical, insulation, and fuel gas piping within the city limits. Furthermore, all permits and licenses issued by the city, including business licenses, dog licenses, kennel licenses, camping permits, marijuana permits, right-of-way permits, and park reservations. Continuing the conservative approach to revenue budgets, the Building Code Fund revenues are estimated to decrease by 28% from the 2025 year-end estimate. The source of these revenues is Licensing and Permits, and much like Charges for Services and Donations, these revenues can fluctuate significantly from year to year. Operating expenses in the department are expected to increase 32% from the 2025 year-end estimate. The Building Inspections department experienced some position vacancies, resulting in salary savings during the current year. When compared to FY25’s original budget, the expenses will increase by 10%. HISTORY 2024 Actual 2025 Budget 2025 Revised Beginning Fund Balance 1,372,154 2,238,315 2,075,814 2,766,864 33% Revenue Taxes 897,358 950,000 950,000 1,000,000 5% Intergovernmental Revenue 23,901 26,337 26,337 26,337 0% Investment Income 5,000 5,000 5,000 0% 921,259 981,337 981,337 1,031,337 5% Total Income 2,293,413 3,219,652 3,057,151 3,798,201 24% Expenses Economic Development Department 135 233,510 145,026 465,000 221% 135 233,510 145,026 465,000 221% Other Financing Uses Transfer - 1000 General Fund 172,734 84,899 84,899 75,581 -11% Transfer - 2250 Planning Fund 44,730 - - 21,481 0% Transfer - 6009 Facilities Fund 24,362 24,362 4,690 -81% Transfer - 6010 Fleet Fund 36,000 36,000 1,795 -95% 217,464 145,261 145,261 103,547 -29% Ending Fund Balance 2,075,814 2,840,881 2,766,864 3,229,654 17% PROJECTED BUDGET 2026 Proposed ---PAGE BREAK--- 2550 – STREET MAINTENANCE FUND The Streets Department is responsible for maintaining the city’s streets and alleys. Activities include sweeping, grading, pavement markings, repairing deficiencies, sanding, plowing, and signs. Currently, revenue projections for Fiscal Year 2026 are based on 4700 properties at the rate of $205 per property. A rate study is underway to update the annual assessment and potentially adjust the assessment structure to a more equitable calculation method. The Finance department will also work on reconciling all annual assessments to ensure that all eligible properties within the city limits are adequately assessed. Revenues are currently projected at a 1% increase. This will be adjusted pending completion of the assessment reconciliation. The General Fund will contribute $34,347 to funding for street maintenance. HISTORY 2024 Actual 2025 Budget 2025 Revised Beginning Fund Balance 789,117 584,594 527,899 592,385 12% Revenue Licenses & Permits 1,137,529 945,000 1,349,816 1,000,000 -26% Intergovernmental Revenue 313 - - - 0% Charges for Service 100,385 75,000 190,000 110,000 -42% Investment Income 614 5,000 5,000 5,000 0% 1,238,841 1,025,000 1,544,816 1,115,000 -28% Other Financing sources Transfer - 2372 Permissive Medical Levy 26,316 20,455 20,455 40,417 98% 26,316 20,455 20,455 40,417 98% Total Resources 2,054,274 1,630,049 2,093,170 1,747,802 -16% Expenses Building Inspections 429,761 673,339 560,843 741,153 32% 429,761 673,339 560,843 741,153 32% Other Financing Uses Transfer - 1000 General Fund 407,251 294,032 294,032 315,318 7% Transfer - 2250 Planning Fund 146,800 94,820 94,820 136,569 44% Transfer - 4010 Capital Improvements Fund 532,600 - - 0% Transfer - 6009 Facilities Maintenance Fund 9,963 46,788 46,788 17,157 -63% Transfer - 6010 Fleet Services Fund - 57,500 57,500 9,248 -84% 1,096,614 493,140 493,140 478,291 Building Inspections Reserve - 446,802 446,802 528,357 18% Ending Fund Balance 527,899 16,768 592,385 0 -100% PROJECTED BUDGET 2026 Proposed ---PAGE BREAK--- Operating expenses are expected to increase by 7% and the annual debt payment will decrease by 70%. Two vacant positions were removed, and part of the available funding will be used to fund a Public Works Superintendent position that will be accounted for in the Public Works Administration department in the Wastewater Operations Fund. 5210 – WATER OPERATIONS FUND The Water Operations Fund accounts for the revenues and expenditures related to operating the City’s water system. This fund includes the Engineering and Water Operations departments. Revenue for Fiscal Year 2025 includes the 4% rate increase provided for in Resolution 2024-10. All other revenues accounted for in the Charges for Service revenue category are either flat or reduced. This will be updated with an estimated impact of new fees for the final budget proposal. HISTORY 2024 Actual 2025 Budget 2025 Revised Beginning Fund Balance 977,656 41,199 (39,452) 133,274 -437.8% Revenue Intergovernmental Revenue 314 - - - 0.0% Charges for Service - 2,600 - - 0.0% Miscellaneous Revenues 510,654 964,000 964,000 975,000 1.1% Investment Earnings (9,524) 5,500 5,500 5,000 -9.1% 501,444 972,100 969,500 980,000 1.1% Other Financing Sources Transfer - 1000 General Fund 207,212 287,268 287,268 34,347 -88.0% Transfer - 2372 Permissive Medical Levy - - - 40,140 0.0% 207,212 287,268 287,268 74,487 -74.1% Total Resources 1,686,312 1,300,567 1,217,316 1,187,762 -2.4% Expenses Road & Street Maintenance 767,262 1,043,924 855,471 818,072 -4.4% Major Maintenance Projects 807,433 - - - 0.0% Debt Service 137,433 153,439 153,439 44,835 -70.8% 1,712,128 1,197,363 1,008,910 862,907 -14.5% Other Financing Uses Transfers - 1000 General Fund 13,636 19,362 19,362 69,950 261.3% Transfers - 5210 - Water Operations - - - 82,377 0.0% Transfers - 5310 Wastewaer Operations - - - 87,870 0.0% Transfer - 6009 Facilities Maintenance - 13,170 13,170 34,611 162.8% Transfer - 6010 Fleet Services - 42,600 42,600 50,047 17.5% 13,636 75,132 75,132 324,855 332.4% Ending Fund Balance (39,452) 28,072 133,274 -100.0% PROJECTED BUDGET 2026 Budget ---PAGE BREAK--- Expenses are expected to decrease by 6% from the 2025 Year-End estimate and remain flat with the 2025 budget. 5310 – WASTEWATER OPERATIONS FUND The Wastewater Operations Fund accounts for the revenues and expenditures related to operating the City’s wastewater system. This fund includes the Public Works Administration and Wastewater departments. HISTORY 2024 Actual 2025 Budget 2025 Revised Beginning Cash Balance (362,593) (842,404) (418,865) 58,369 -114% Revenue Charges for Services 2,156,120 4,214,395 3,774,994 3,847,242 2% Miscellaneous Revenues 59,529 65,000 136,150 136,000 0% Investment Income (3,226) 9,500 9,500 9,500 0% 2,212,423 4,288,895 3,920,644 3,992,742 2% Other Financing Sources Transfer - 1000 General Fund - 80,291 80,291 - -100% Transfer - 2210 Parks District - 20,073 20,073 12,357 -38% Transfer - 2372 Permissive Medical Levy - - - 6,012 0% Transfer - 5310 Wastewater Fund 32,226 160,581 160,581 33,375 -79% 32,226 260,945 260,945 51,744 -80% Total Resources 1,882,056 3,707,436 3,762,724 4,102,854 9% Expenses Utility Billing 480,473 - - - 0% Engineering 522,993 522,993 599,529 15% Water Operations 842,731 1,413,296 1,647,651 1,444,065 -12% 1,323,204 1,936,289 2,170,644 2,043,594 Other Financing Uses Transfer - 1000 General Fund 582,027 498,314 498,314 482,056 Transfer - 4010 Capital Improvement Fund 3,854 - 574,148 - -100% Transfer - 5211 Water Debt Service 226,200 213,022 213,022 213,463 0% Transfer - 5310 Wastewater Operating Fund 125,097 125,097 197,630 58% Transfer - 6010 Fleet Services Fund 92,598 28,850 53,850 31,878 -41% Transfer - 6009 Facilities Maintenance Fund 73,039 69,280 69,280 66,466 977,718 934,563 1,533,711 991,493 -35% Unrestricted Cash Balance (418,865) 836,584 58,369 1,067,768 1729% PROJECTED BUDGET 2026 Proposed ---PAGE BREAK--- Revenue for Fiscal Year 2025 includes the 15% rate increase provided for in Resolution 2024-10. Operating expenses are expected to decrease 3% from the previous year. A Public Works Superintendent has been added to the Public Works Administration department. HISTORY 2024 Actual 2025 Budget 2025 Revised Beginning Cash Balance 1,963,157 1,198,665 1,074,040 1,902,003 77% Revenue Charges for Services 2,926,218 4,322,652 4,309,649 4,949,050 15% Intergovernmental Revenue 360 - - - 0% Miscellaneous Revenues 91,528 - 135 - -100% Investment Income (9,194) 8,000 (1,113) - -100% 3,008,912 4,330,652 4,308,671 4,949,050 15% Other Financing Sources Transfer - 1000 General Fund - 52,910 52,910 8,238 -84% Transfer - 2210 Parks District - 5,622 5,622 6,384 14% Transfer - 2372 Permissive Medical Levy 1,236 - - 4,897 0% Transfer - 2550 Streets Maintenance 87,870 0% Transfer - 5210 Water Fund - 125,097 125,097 197,630 58% 1,236 183,629 183,629 305,019 66% Total Resources 4,973,305 5,712,946 5,566,340 7,156,072 29% Expenses Public Works Administration 256,497 353,981 348,180 621,745 79% WasteWater Operations 803,974 1,060,519 1,064,425 794,434 -25% 1,060,471 1,414,500 1,412,605 1,416,179 0% Other Financing Uses Transfer - 1000 General Fund 964,501 608,641 608,641 508,882 -16% Transfer - 2210 Parks & Recreation - - - 6,384 0% Transfer - 5210 Water Operating Fund 32,226 160,581 160,581 33,375 -79% Transfer - 5311 Wastewater Debt Service 1,700,976 1,327,881 1,327,881 1,328,260 0% Transfer - 6009 Facilities Maintenance 110,240 103,509 103,509 53,712 -48% Transfer - 6010 Fleet Services 30,851 26,120 51,120 23,446 -54% 2,838,794 2,226,732 2,251,732 1,954,059 -13% Restricted Cash Balance 176,490 176,490 176,490 0% Replacement and Depreciation Balance 76,083 76,083 809,590 964% Unrestricted Cash Balance 1,074,040 1,819,141 1,649,430 2,799,754 70% PROJECTED BUDGET 2026 Proposed ---PAGE BREAK--- HISTORY 2024 Actual 2025 Budget 2025 Revised Beginning Fund Balance (19,764) 5 33,900 29,329 -13.5% Revenue Intergovernmental Revenue 207 - - - 0.0% Miscellaneous Revenues 130 - - - 0.0% 337 - - - 0.0% Other Financing Sources Transfer - 1000 General Fund 469,917 258,869 258,869 303,025 17.1% Transfer - 2210 Parks District Fund 11,200 23,078 23,078 40,533 75.6% Transfer - 2225 Library Fund 79,709 145,848 145,848 261,927 79.6% Transfer - 2250 Planning Fund 26,352 45,931 45,931 44,829 -2.4% Transfer - 2280 Senior Citizens Center Fund 28,007 49,600 49,600 32,503 -34.5% Transfer - 2310 Urban Renewal District 24,362 24,362 4,690 -80.7% Transfer - 2372 Permissive Medical Levy 13,918 - - 27,456 0.0% Transfer - 2394 Building Code Fund 35,924 46,788 46,788 17,157 -63.3% Transfer - 2550 Street Maintenance - 13,170 13,170 34,611 162.8% Transfer - 5210 Water Operations Fund 39,108 69,280 69,280 66,466 -4.1% Transfer - 5310 WasteWater Operations Fund 39,108 103,509 103,509 53,712 -48.1% 743,243 780,435 780,435 886,909 13.6% Total Resources 723,817 780,440 814,335 916,237 12.5% Expenses 410500 Finance 81,757 102,363 102,954 102,955 0.0% 411200 Facilities Maintenance 331,758 375,346 342,318 479,154 40.0% 500120 City Hall 101,903 72,330 72,330 70,000 -3.2% 500121 Library 52,891 82,315 93,715 104,000 11.0% 500122 Public Works 29,425 21,300 25,500 27,250 6.9% 500123 Street Facilities 1,132 3,500 3,500 3,000 -14.3% 500124 Water Facilities 10,413 13,750 21,159 11,500 -45.6% 500125 Wastewater Facilities 40,678 31,000 45,048 28,250 -37.3% 500126 Police 5,930 500 2,200 16,500 650.0% 500127 Parks & Recreation 5,921 2,250 2,548 11,500 351.3% 500128 Senior Citizens Center 13,849 17,820 15,561 15,466 -0.6% 500129 HR & Economic Development 2,454 32,650 37,002 36,000 -2.7% 500130 Administration Offices 8,605 9,551 5,673 5,650 -0.4% 500131 Future City Offices - - 119 - -100.0% 500132 Legal Offices 3,201 15,760 15,379 3,510 -77.2% 689,917 780,435 785,006 914,735 16.5% Ending Fund Balance 33,900 5 29,329 1,502 -94.9% PROJECTED BUDGET 2026 Proposed 6009 – FACILITIES MAINTENANCE FUND Facilities Maintenance is funded from the City’s operating budgets and accounts for the maintenance of all City facilities. The preliminary Fiscal Year 2025 budget includes only the estimated costs for maintaining facilities as they are and does not include any additional improvements or adjustments. ---PAGE BREAK--- HISTORY 2024 Actual 2025 Budget 2025 Revised Beginning Fund Balance 88,828 582,197 582,367 5,200 -99.1% Revenue Miscellaneous Revenues 28,052 29,000 44,795 - -100.0% Investment Income 6,256 - 1,200 1,200 0.0% 34,308 29,000 45,995 1,200 -97.4% Other Financing Sources Transfer - 1000 General Fund 826,608 25,954 25,954 127,892 392.8% Transfer - 2210 Parks District 309,000 20,660 20,660 22,521 9.0% Transfer - 2225 Library 1,012 - - - 0.0% Transfer - 2250 Planning - - - 2,339 0.0% Transfer - 2280 Senior Citizens Center 5,500 3,740 3,740 2,339 -37.5% Transfer - 2310 Urban Renewal District - 36,000 36,000 1,795 -95.0% Transfer - 2394 Building Code - 57,500 57,500 9,248 -83.9% Transfer - 2550 Street Maintenance - 42,600 42,600 50,047 17.5% Transfer - 5210 Water Operations 92,598 28,850 53,850 31,878 -40.8% Transfer - 5310 WasteWater Operations 30,851 26,120 51,120 23,446 -54.1% 1,265,569 241,424 291,424 271,505 -6.8% Total Resources 1,388,705 852,621 919,786 277,905 -69.8% Expenses 410400 City Manager's Office 35,158 2,400 1,663 1,700 2.2% 410500 Financial Services 18,505 21,954 22,034 21,955 -0.4% 410570 Utility Billing 1,322 - - - 0.0% 411000 Planning 699 6,600 1,200 2,150 79.2% 411200 Facilities Maintenance 6,713 9,700 11,239 7,750 -31.0% 411900 Technology 324 1,600 685 2,100 206.6% 420100 Police 197,049 573,639 579,078 98,500 -83.0% 420144 Code Enforcement 2,026 9,250 9,250 7,500 -18.9% 420500 Building Inspections 5,752 57,500 56,423 8,500 -84.9% 430100 Public Works Administration 9,007 4,120 68,663 4,500 -93.4% 430240 Streets 77,897 42,600 63,021 46,000 -27.0% 430500 Water 98,452 20,600 24,496 24,800 1.2% 430600 WasteWater 17,025 22,000 17,372 17,500 0.7% 431400 Engineering 1,575 8,250 6,888 4,050 -41.2% 450310 Senior Citizens Center - 3,740 212 2,150 914.2% 460100 Library 1,012 - 118 - -100.0% 460400 Parks & Recreation 333,822 20,660 18,862 20,700 9.7% 470300 Economic Development - 36,000 33,382 1,650 -95.1% 806,338 840,613 914,586 271,505 -70.3% Ending Fund Balance 582,367 12,008 5,200 6,400 23.1% PROJECTED BUDGET 2026 Proposed 6010 – FLEET MAINTENANCE FUND Fleet Maintenance is funded from the City’s operating budgets and accounts for the maintenance of all City vehicles. The preliminary Fiscal Year 2025 budget includes only the estimated costs for maintaining the City’s fleet with only a truck for the Public Works Superintendent being added for the preliminary budget.