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HomeMy WebLinkAbout16. 2021 Levy TargetOshkosh TO: Honorable Mayor and Members of the Common Council FROM: Russ Van Gompel, Finance Director DATE: September 2, 2020 RE: 2021 Levy Target Discussion BACKGROUND At the August 191h Budget Workshop, Council was presented a "Funding Base Budget Assumptions". An additional copy is attached for your review. At the workshop, Council expressed a desire to continue with a discussion on the target levy at the September 81h Council meeting. Council should discuss what if any levy they would like the City Manager and staff to use as staff begins the process of compiling budget requests from the various departments. For 2020, the current levy is $40,737,400. I have illustrated what various potential increase could represent in the amount of tax revenue collected. The highlighted option at 4.41% would generate $1,796,288 in additional tax revenue. This revenue would be needed to cover nondiscretionary and discretionary increases based on current assumptions. It is possible that these assumptions could change. At this point in our preparation of the 2021 Operating Budget, it would be helpful if Council could provide some input as to what if any increase Council would feel is appropriate in trying to present a balanced budget. Respectfully Submitted, Russ Van Gompel Finance Director Approved: Mark Rohloff City Manager Finance Department City Hall, 215 Church Avenue P.O. Box 1130 Oshkosh, WI 54903-1130 920.236.5005 http:!/vuwva.ci.oshkosh.wi.us Funding Base Budget Assumptions Current levy Options for Consideration: 40,737,400 0.00% 1.00% 2.00% 3.00% 4.00% 4.41% 5.00% Nondiscretionary Increasel(Decrease): Debt Service Wage and wage benefits Total Nondiscretionary Increasel(Decrease): Discretionary Increases: Discretionary wage allowance Health/Dental Insurance Increase (7% Health Ins estimate and 0% Dental Ins estimate) Total Discretionary Total Increasel(Decrease)in spending 40,737,400 41,144,774 $ 407,374 41,552,148 $ 814,748 41,959,522 $ 1,222,122 42,366,896 $ 1,629,496 42,533,686 $ 1,796,286 42,774,270 $ 2,036,870 (910,455) 1,559,400 $ 648,945 'No Consideration for Expenditure Restraint Program (ERP) 925,000 222,341 $ 1,147,341 1,796,286