2020 Budget

2020 Budget in Brief

Estimated Beginning Balance $39,720,474
Estimated Revenues $47,268,982
Requested Appropriations $39,225,310
Estimated Ending Balance $47,764,146

Revenue Assumptions

  • Income Taxes are conservatively forecasted at 1%.
  • Property taxes assessed valuation $585 million to $586 million.
  • Real Estate Taxes are estimated to be 1% more than 2019.
  • All other revenue sources include Local Government Fund, Investment Income, and the Gasoline Tax and Motor Vehicle Registration Fees.

Total Revenues and Expenditures

2020 Budget 2019 Budget Variance
Total Revenues $47,268,982 $24,453,666 $22,815,316
Total Expenditures $39,225,310 $23,801,790 $15,423,520

Total Revenues and Expenditures Notes

  • Conservatively forecasted at 1%
  • Increase in total revenues can be attributed to additional gas tax and anticipated MQ bond proceeds
  • Increase in total expenditures can be attributed to anticipated construction costs for the MQ

Fund 223 – Fire/EMS Levy Fund

Estimated Beginning Balance $6,101,037
Estimated Revenues $5,712,938
Total Available $11,813,972
Estimated Expenditures $4,578,079
Estimated End Balance $7,235,896
Months in Expenditures 19

Fire/EMS Levy Fund Notes

  • Reserve Fund Balance Policy 6-12 months of operating expenditures in reserve.
  • Revenues generated primarily from property taxes.

Fund 410 – Capital Improvement Fund

Estimated Beginning Balance $3,590,411
Estimated Revenues $2,013,900
Total Available $5,604,311
Expenditures $2,831,950
Estimated End Balance $2,772,361
Reserve Balance $1,000,000
Variance $3,772,361

Capital Improvement Fund Notes

In 2020, 20% of income tax revenues are allocated for capital improvements.

Debt Service

Project 2020 Principle 2020 Interest 2020 Total
Special Assessment $0 $0 $0
Reserve Bond Retirement $170,000 $8,170 $178,170
VC Phase I $465,000 $497,497 $962,497
VC Phase II $30,000 $242,806 $272,806
GRA $0 $0 $0

Personnel Costs

Labor agreements

  • FOP - Police expired June 2019
  • AFSCME - Public Works expires in August 2020
  • IAFF - Fire expires in March 2021

Healthcare Costs

  • Increase in medical premiums
  • City’s total contributions to fund medical and dental insurance premiums is budgeted at $1,349,698 in 2020, increasing to $2.0M in 2024.
  • Future increases are based on annual increases of 10% for medical and 3% for dental insurance.

Solid Waste and Recycling Costs

  • New Contract 2018-2022
  • $645,331 per contract year
  • Contract includes eight weeks unlimited yard waste collection and holiday greenery collection.

Future Budgetary Considerations

  • $5 motor vehicle registration fee
  • Future reallocation of City Income Tax Revenues

2020 Annual Budget Timeline

  • October 2 – 1st Reading
  • November 6 – 2nd Reading
  • December 4 – 3rd Reading
  • December 19 – Appropriations to amend 2018 Budget.

Montgomery Open Checkbook

Contact

Katie Smiddy, Finance Director
513-792-8349
[email protected]

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