1996 Adopted Program of Municipal Services & Capital Improvements for Fiscal Year 1996

Home

Budget Message, Page 2 December 12, 1995 The entire City staff, with significant review and direction from the City Council, has worked diligently in putting together this balanced municipal budget by addressing each of these goals, directly and indirectly. Staff is pleased to present the Adopted 1996 General Fund Operating Budget ip. the amount of $3,513,068. This General Fund Budget reflects a 10.24% increase over the Adopted 1995 General Fund Operating Budget, or in actual dollar amounts equates to $326,392. While this increase seems to be extraordinary, it can be attributable to several items including, but not limited to, ~ moderate overall tax increase to accommodate a marginal increase in 1996 aids and increased service needs, the addition of a full-time patrol officer during 1995 [which was not in the original budget] a full-time maintenance worker, and a significant amount in capital purchases, which are offset by a revenue transfer from the Equipment Replacement Fund. The State Legislature eliminated the mandatory levy limits which had artificially constrained both tax revenues and service delivery in past years. It still remains the position of the City to 'keep taxes at moderate levels while providing services and programs desired by the public. A reinstatement of the levy limit would severely restrict City flexibility in the future. With the future of state aids not known, the City Council and staff have taken a step forward by establishing formal policies and procedures for certain operating funds of the City. These funds are the primary source of funding for the projects outlined in the Capital Improvement Program for 1996 - 2001. Each project within the program has a programmed funding source, something that is uncommon in most city's multiple year capital improvement programs. In Ramsey, the threat of limited future funds will require continued close City Council review of City priorities. The City will have to evaluate personnel needs, equipment needs, service demands, and public improvements for future years. The demands placed upon Ramsey by the public for fulfilling local needs will also increase in the future as the population continues to grow. The challenges for Ramsey are immense and the City has made appropriate plans to meet the upcoming challenges. Comments on individual cost centers are offered within the budget document. Some comments on general expenditure trends in different categories are offered below: Personal Services;,; This category represents 54.82% of the 1996 General Fund Budget. This is a decrease from 61.78% in 1994 anq budgeted 55.089% for 1995. The primary reason fur the decrease is the growth of the operation while continuing to restrict growth in the staff complement. This percentage will continue to increase or decrease each year based on personnel additions and changes. The City anticipates spending $1,930,139 on General Fund personnel in 1996. xii I I I I I I I I I I I I I I I I I I I