City outlines budget; plans levy increase

• Property tax chart

River Falls recently began its annual budget-review process. A city budget report includes this graphic that illustrates how property taxes are allocated. About 23 cents of each dollar collected from city residents goes toward supporting city functions. Graphic courtesy of the city of River Falls.

Talk about it

City Council members got their first look during a Sept. 11 meeting at River Falls’ draft budget for 2013, which City Administrator Scot Simpson summarized.

The projected total needed to operate River Falls next year: $41,051,057, an increase over last year’s budget total of 2.60%.

River Falls anticipates raising the tax levy by 2.7%, which Simpson says is less than projected in the city’s fiscal plan. Last year the tax levy increased about 1.3%.

He said the outline gives a good first look at how things are shaping up. He said the city set a goal of drafting the budget with plenty of time for review, workshops, public hearing and other efforts.

The City Council attend a budget workshop Tuesday and will hold more sessions if needed. The city will hold a public hearing on the budget 6:30 p.m. Tuesday, Nov. 13. Approval of the 2013 budget is expected to happen at the Nov. 27 City Council meeting.

Simpson said the numbers follow River Falls’ 2011-2013 work plan, the city’s five-year fiscal plan and established fiscal policies. He reiterated a general budget goal: A no-drama process.

Simpson’s presentation to the Council showed that the average property tax bill in River Falls is around $3,000, of which the city’s part is about $600. Funds from the tax levy are used for operations, debt service and capital.

Revenue will increase about $45,000 due to better-than-expected interest earnings and about $127,000 from increased allocations from re-organized funds.

A revenue decrease of $20,000 results from reductions in state shared revenue, as well as a reduction in “sensitive revenues” such as money from building permits and courts.

Expenses decrease in two areas: Elections by $24,500 since it’s an odd-numbered year; and engineering by nearly $60,000 because the department eliminated a vacant full-time position.

Health insurance represents a major cost increase for 2013 versus what was included in the fiscal plan, with an expected increase of 15% or $ 240,000.

Expenses increase by $85,447 for public safety due to the increased costs of maintaining current police and fire staffing levels. Forestry and the Glen Park pool each add about $11,000 in increased expenses due to a boulevard-tree replacement program and improvements to include an ADA-accessible chair lift and a concrete deck.

Finance department expenses increased also as a result of consolidating accounting functions.

The money for the budget comes from six different funds: General, debt service, special revenue, capital projects, enterprise and internal service.

The enterprise fund has $20.1 million for basic utility functions including electric, sewer, ambulance, water and storm water. It takes the largest part of the city’s budget, about 51%.

From the general fund, about 21% of the budget, comes the money for public safety, public works and engineering, community development, administration and finance, non-departmental items, human resources and mayor and city council. The total amount allocated for that fund is $8.5 million.

The capital projects fund contains about $7 million to cover general improvements -- see related story -- and capital equipment, which totals about 17% of the 2013 budget.

Special revenues will have about $3.2 million for 2013; it covers the library, tax-increment finance districts, taxis and parking meters, media services and impact/revolving/environmental fees, housing reserves, development and tourism, and solid waste. This fund makes up about 8% of the city budget.

From the debt service fund, which contains about a million dollars and comprises 2% of the budget, comes the money to make payments on the city’s debt.

River Falls’ internal service fund, about 1% of the total budget at $411,274, covers expenses related to City Hall, technology and the motor pool.

Simpson showed a chart with the history of tax-levy limits, which indicated that River Falls has remained under the state’s maximum-levy limit for the past four years.

People can look at the budget summary and accompanying graphics online at the city’s Web site -- www.rfcity.org -- or via hard copy at City Hall, 222 Lewis St. and the River Falls Public Library, 140 Union St.

Tags: river falls, government, money, wisconsin