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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 Budget2019 BudgetVariance
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 Expenditures19

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
Estimated End Balance$2,772,361
Reserve Balance$1,000,000

Capital Improvement Fund Notes

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

Debt Service

Project2020 Principle2020 Interest2020 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

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


Katie Smiddy, Finance Director
[email protected]

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