In accordance with State law, the City cannot exceed the budgeted expenditure amount for any budgeted fund. This is required even if additional revenue is received that offsets the increased expenditures. To ensure compliance with State statutes, staff is recommending amendments per the attached budget documents. The summary below outlines the primary reasons for the adjustments.
Special Highway: Additional expenditures out of this fund are related to the Swartz Rd. full-depth repair project. The additional $26,000 is to make up project costs not being covered by the Special Sales Tax fund or Cemetery funds (related to the cemetery paving portion of the project).
Solid Waste: Additional expenditure in this fund is due to the increase in the per-address charged to the City that KC Disposal initiated in October. This increase, from $15.92 to $17.92 was enabled via the addendum to the 2020 Solid Waster Service Agreement, approved by the City Council in April of this year. No changes to residential rates were implemented at this time and the deficit in the fund will be made up using a transfer of sewer funds.
The proposed changes do not require additional taxes or fees. In closing, staff recommends approval of the revised 2022 budget after conducting a public hearing.
Finalized budget materials will be posted online on Friday, December 9 at the City's Online Agenda Center HERE.