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Budget - 2003 Admin-Finance-Rec~~ FINANCE -~ BUDGET 2003 Finance Programs ^ Finance is made up of nine programs: Benefit Administration, Budgeting, Cash Management, Debt Management, General Accounting, Payroll, Risk Management, Tax Increment Reporting and Utility Billing. d&.NdfR+d4,gAA~ Finance Programs ^ Major objectives accomplished in 2002 include: Implement ACH payment for utility customers and progress to monthly billings where radio read meters are installed, r Applied for GFOA budget award, ~ Project future debt needs and abilities, ~ Reconciled health and dental insurance billings. -. ~. ~.9.aut~,dn~..>.~ Finance Programs ^ Major objectives to be accomplished in 2003 include: Reconcile general ledger liability accounts for insurance, ~ research two year budget process, prepare RFP for banking services, monthly Onancial reports in update, aggressively seek 100% participation in direct deposit. ,.. Finance Programs ^ Objectives accomplished annually include: . Invest city funds prudently, . maintain cash flow projections, . maintain bond rating, . CAFR award , . ensure adequate insurance coverage for all city property, • analysis of TIF funds, . overall conservative financial management and accurate reporting of financial information. Finance Programs ^ The Finance departments overall increase is 6.4% or $9,488. ^ The increase is attributed to increased salary costs of 7.7 %, which is primarily a result of the comparable worth study conducted in 2001-2002. 1 Finance Programs ^ As a result of the future state deficits, all departments have been required to come up with two scenario's of reductions of budgets, one temporary and one permanent. Both scenario`s are 2.7% reductions in current requested budgets, to resolve potential state aid cuts. Finance Programs ^ For Finance the scenario's are as follows: . 1. Temporary decrease in training and travel of $4,280. . 2. Permanent reduction for one senior clerk position, to 36 hours a week. Finance would then discontinue the budget award application process and discontinue supporting the receptionist duties. This would enable us to absorb the work from one clerk loosing 2Q8 hours a year. Finance Programs ^ Benefit Administration Up - i3.1%, increase in salaries for personnel. We provide employees with benefit information and administration by maintaining benefit records in house and with vendors, administer flexible benefit accounts and ensure proper coverage for employees. ••-^ ~ / ` ~ ~ '~ 'Y~~;° I ~ ~,,. -~ ~` ,Y .~~~ -w:t . ,,, - h ,... z,t,.' «as • ..t . . r3,,. .:u y, Viz: Finance Programs ~- ^ Budget Up - 6.6%, increase in personnel expenses. Prepare annual budget, Apply for budget award, monitor budget, prepare equipment replacement plan and assist with CIP. Finance Programs -~ ^ Cash management '~' r Up -15.7%, decrease in amount charged to other funds for cash management and increased salary expenses. t ~ ~~~ Invest funds according to policy `" and needs and project cash flows for all city funds. Finance Programs 2 .~ Finance Programs ^ General Accounting Up - 5.1%, increase in salary expenditures. Pay bills, keep complete and accurate records, prepare monthly financials, provide information to Council, Departments and Citizens. Finance Programs e ~' ~' e =~ C-'~~cJ ^ Payroll Down - 6.9%, substantial decrease in the amount charged for equipment replacement and reallocation of employee time. Maintain all payroll records, process payroll biweekly, complete and file all required payroll reports and provide payroll information. . _. ~ . ,. . ~~ Finance Programs ~~i ~- ,..... - _.,I ^ Risk Management Up - 83.2%, substantial increase in allocation of personnel time in this program. Prepare insurance claims, follow through on open claims, review insurance needs and ensure accurate coverage. <<r.~f„ Finance Programs ^ Tax Increment ' Financing Admin. , ~ Zero change to the general ~ fund. All charges are ,../ applied to Tax Increment Funds. ~~~~ ~~~~~~ Prepare annual reports and ~~~~~~~ keep abreast of changes in the TIF laws. ;~~- ~~~, ~-. Finance Programs ^ Utility Billing Zero affect on the general fund. All charges are against utility funds. ~ ~ Process monthly and ~ ~ quarterly utility bills, ~ ~ ~ analyze rates, notify water and sewer of maintenance needs and requests. Facility bonds ^ $5,375,000 The HRA will be issuing debt in October or November, for only the fire station portion of the redevelopment project. The amount of debt being issued at this time has been reduced from its' original projections. This impacts our levy projection for 2003. 3 y,;..., a, „~ G.1.,. n' ~J~ h rt n t . . t __ ~ ., ~ ~ we ,.. r ~ . „ va1d63.M' es'i< Facility bonds ^ .Levy impacts Our new projected debt levy for 2003 is $809,000, down $85,000 from our original projection. The total levy increase is reduced to 7.63% from 8.92%. Overall, residential taxes for the average home will increase $94 a year instead of $115 a year.