2019 Budget in Brief

Estimated Beginning Balance$39,436,408
Estimated Revenues$36,092,909
Requested Appropriations$35,737,742
Estimated Ending Balance$39,791,575

Total Revenues and Expenditures

2018 ESTIMATED BUDGET COMPARED TO 2018 PROPOSED BUDGET

 2019 Budget2018 EstimateVariance
Total Revenues$36,092,909$31,240,600$4,852,309
Total Expenditures$35,737,742$25,785,796$9,951,946
The increase in total revenues can be attributed primarily to the additional fire levy and anticipated Montgomery Quarter bond proceeds. The increase in total expenditures can be attributed to the anticipated construction costs for the Montgomery Quarter.

Revenue Assumptions

  • Income Taxes are conservatively forecasted at 1%.
  • Property taxes assessed valuation up from $526 million to $527 million.
  • Real Estate Property tax is estimated to be 1% more than 2018.
  • All other revenue sources include Local Government Fund, Investment Income, and the Gasoline Tax and Motor Vehicle Registration Fees.

Fund 223 – Fire/EMS Levy Fund

Estimated Beginning Balance$3,718,835
Estimated Revenues$5,672,743
Total Available$9,391,578
Estimated Expenditures$3,323,302
Estimated End Balance$6,068,276
Months in Expenditures22

  • 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$4,096,283
Estimated Revenues$2,273,728
Total Available$6,370,011
Capital Expenditures$2,006,600
Estimated End Balance$4,363,411
Reserve Balance$1,000,000
Variance$3,363,411

  • In 2019, 20% of income tax revenues are allocated for capital improvements.
  • See Capital Improvement Program for complete list of projects budgeted in 2019.

Debt Service

Project2019 Principal2019 Interest2019 Total
Special Assessment$4,867$3,567$8,434
Reserve Bond Retirement$165,000$14,440$179,440
VC Phase I$450,000$506,927$966,927
VC Phase II (estimated)$0$242,810$242,810
GRA (estimated)$20,000$799,350$819,350

Personnel Costs

Labor agreements

  • IAFF-Fire expired in March 2018
  • FOP-Police expires June 2019
  • AFSCME-Public Works expires in August 2020

Healthcare Costs

  • No increase in medical premiums.
  • City’s total contributions to fund medical and dental insurance premiums is budgeted at $1,302,023 in 2019, increasing to $1.7 million in 2023.
  • Future increases are based on annual increases of 10% for medical and 3% for dental insurance

Solid Waste and Recycling Costs

  • 6% of City’s General Fund expenditures
  • 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
  • Montgomery Quarter Development
  • Future reallocation of City Income Tax Revenues

2019 Annual Budget Timeline

  • October 3 – 1st Reading
  • November 7 – 2nd Reading
  • December 5 – 3rd Reading
  • December 19 – Appropriations to amend 2018 Budget.

Montgomery Open Checkbook