Attached is the working budget document for the Debt Service Funds, Capital Improvement Funds, Storm Water Fund, Property Owner Association Fund and ARPA Fund.  The General Fund, Aquatic Fund, and Community Center Fund will be reviewed at your next workshop (to break up the budget presentation process).

The attached line-item budget document starts with the 200 Debt Service Fund and ends with the 550 American Recovery Plan Act Fund (from smallest to largest fund number). Notes at the bottom of each fund page provide insight to unique elements or changes.

Reading from left to right you will see the account number, account title, 2021-2023 Actual, 2024 Projected Budget (the revised budget for 2024), 2025 Budget (proposed), 2026 Budget (estimate) and 2027 Budget (estimate).

Cells highlighted in Light Blue indicate accounts containing amounts in support of Objectives or remind staff of a point we want to make about that entry. Green cells indicate staff has confirmed updates to these figures. Red cells indicate a new line item has been added or we know that a change needs to be made to this figure. Yellow cells reflect the numbers that are still tentative.  

The Debt Service Fund (200) is the first fund.  Beginning Fund Balance is shown as the first revenue line.  Revenues are shown at the beginning (top) of each fund sheet, subtotals are shown for each major segment of revenue.  Expenses follow revenues, these are separated into expense types (Personnel, Contractual Services, Commodities, Capital, Debt Service, Transfers).  At the end of each fund is the Ending Fund Balance line.  As we review each fund we will highlight the estimated ending fund balances and provide an explanation for changes in the ending balance.

Please make notes as you review. We recognize that this document will not answer all questions and staff will stand ready to address questions.  We have developed the document in excel and staff has included comments in cells to serve as a detailed reference.

Because the City uses General Fund resources to pay for capital, the mill levy is a key component to being able to fund capital on a pay as you go approach.  The .50 mill reduction preliminarily reflected will not cause delay in completing the projects reflected in the CIP as presented. 

Also attached is the current version of the capital improvement plan.  The expenses associated with CIP items in years 2024 through 2027 are reflected in the appropriate line item of the budget.  Staff will point these out during our review. Capital investment planned between 2024 and 2027 is higher than normal and reflects the City's efforts to address the most important citizen satisfaction element, maintenance of facilities and infrastructure as well as the investment in a new Public Works facility.  Balances within our capital funds fluctuate during this period but remain positive. 

Also attached for reference are the Preliminary Objectives, the appropriate line item (cell is highlighted in Light Blue) has the budget impact of each objective reflected.

Revenues have been estimated conservatively (we expect they will be higher than budget).  Expenses continue to be refined to be closer to our actual history, but again conservative (we expect they will be lower than budget).

The ending fund balance for each of our funds remains positive through the 2027 estimates.  In addition, the ending fund balance benchmarks are being met through 2027.  The 2024 Projected Budget reflects current revenue and expense conditions that are now known vs what we estimated a year ago when the 2024 budget was developed.