Monday, July 22, 2019
7:00 AM City Hall
President Carlsrud called the meeting to order at 7:00 AM.
Members present: Commissioner Magnuson, Commissioner Bishop, Commissioner Powell
Members Absent: Commissioner Erickson
Others Present: City Administrator Schelkoph, Finance Director Richter, Deputy Auditor Klein, City Attorney Martineck, Police Chief Hatcher
Discuss first draft of 2020 Budget
Auditor Richter reported that the value of a mill increased by an estimated $192 from last year to an estimated value of $17,400. The County Auditor will determine the actual value of a mill later in Dec 2019. New growth and properties that moved off the exempt status attributed to $170 of the increase and the balance of $22 is the result of changes in valuations on existing properties. To maintain the 0 mill increase, the city would need to decrease its mills by 1.1 mills from 2019 budget which is an increase of $18,677 in property tax revenue. The first draft of the budget is presented with 4.97 mills increase from last year, an increased the amount of $101,600 which is 3%.
To ensure financial strength and stability, cash reserves increased by $46,186 which brings the total budgeted reserves to $965,000 which is 30% of general fund appropriations as recommended in the guidelines set in the City’s Fund Balance policy. The General fund revenues increased by $29,921 and expenditures increased by 101,748.
The proposed salaries in the 2020 budget includes a 1.3% cost of living allowance (COLA) increase and a step increase in the 25 year salary schedule. Cost of Living Adjustment (COLA) is calculated using the Consumer Price Index, in the U.S. Department of Labor, Bureau of Labor Statistics report for the Midwest Region from May 2018 to May 2019.
At 8:10 AM Meeting Adjourned until 7:00 AM Tuesday, July 23, 2019.
Attested to by:
Dave Carlsrud, President of the
City of Valley City Commission
Attested to by:
Avis Richter, City Auditor
City of Valley City