GF - 2018 Budget

GF - 2018 Budget Click to Enlarge

The Grand Forks council approved a 2018 budget last night that boosts property taxes and utility fees. The spending plan calls for an average two-point-85 percent increase in property taxes and a two-point-95 percent increase in utility rates for the average user next year. City Administrator Todd Feland says there are challenges ahead with revenues - but it’s a good budget plan. Feland says when you add a new fire station...six police officers...plus two dispatchers without raising the mill it's doing a lot in a short amount of time.

The council made one minor change to the budget by opting not to take a planned raise and instead divert the money to salaries. Council member Danny Weigel says the 14 hundred dollars in total savings is not a huge sum but helps send a message.

The general fund portion of the budget will total around 39-million dollars in 2018 – up from 38-point-six million this year.


CITY 2018 BUDGET SUMMARY:

Here is a summary review of what’s included in the 2018 budget: The 2018 Mayor’s Budget provides for the following: • Zero mill increase overall • Decrease in state aid & sales tax projected revenue • General Fund budget approximately 1% increase as compared to 2017 budget; o Held General Fund nearly flat in 3 year timeframe;  2016 $38.7M; 2017 $38.6M; 2018 $39M • at the same time increased focus on public safety o operational impact of additional fire station, including 12FTE (2016) o 6 additional police officers (2 in 2016; 4 in 2017 through grant) o 2 additional dispatchers (1 in 2016; 1 in 2017) • General Fund 2018–Change in FTE’s – (0.47) • General Fund includes 50% grant match for 4 police officers (2nd year of grant) o Grant funding allowed the 4 officers to be hired in 2017, as city share increases gradually over 4 year period • Loan & Stabilization Fund o includes $301,364 transfer to General Fund & use of $292,401 department carryover to cover capital items to prevent any mill increases o Project further use of Loan & Stabilization funds in the 6 year projection as we build capital and capital reserve back up until flood protection mills are available to get transferred in 2020, 2021 timeframe (this is a reallocation of mills; not an increase to mills in total to city) • Total budget with all funds: Total $237M (2018 budget) vs $211M (2017 budget); $26M increase due to significant capital project  Water Treatment Plant (WTP) $27M increase as compared to 2017 budget o Total Operating Budget (not including debt and capital projects):  $118.6M (2018) compared to $119.6M (2017) ; slight decrease overall • Funding included for internship program (partner with UND 50/50) • In 2018 one mill estimated to be $221,287 compared to $210,658 in 2017. o 56.5% of increase due to valuation; 43.5% due to growth o Keeping mills level required notice of 2.85%, which was given; • Salary Plan shows wage increase of 2.74% (this is inclusive of market and PFP). o Preliminary budget funds 2.22% • Continued funding of Defined Benefit pension plan o 18 years left on 30 year pan to fully fund (this is a closed plan). • Social Detox Center o Share of operations budgeted ($58,000) • Continued funding of animal control $52,515 from general fund. o Look to approve similar agreement with approval of budget; just revise for new fiscal year • Economic Development Fund includes: o As we show a 3% decrease in estimated sales tax collections, we have budgeted a corresponding 3% decrease in the areas of Air Base Enhancement; Arts, Events, & EDC .

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