FY 18 Annual Report

Other General Government

2018

CITY OF SPENCER, IOWA

Departmental Highlights

The Other General Government department accounts for miscellaneous transactions that do not necessarily fall under another department, or transactions that benefit all departments as a whole. The budgetary funds that this category covers includes General revenues/expenditures, Safe Routes to Schools, Hotel/Motel Tax expenditures, Spencer Cares, Technology fund, general FICA/IPERS expenses, Group Health Insurance, Worker's Compensation Insurance, Unemployment Benefits, the emergency fund and accrued benefits fund. The Safe Routes to School fund is a partnership between the City of Spencer and Spencer Community School District. Both of these entitles contribute $30,000 annually for projects that will enhance pedestrian safety through out community with emphasis given tot those routes leading to and from a school location. Projects have include the installation of new sidewalks, speed radar signs, and flashing lights at crosswalks. The City is a member of the Iowa Governmental Health Care Plan (IGHCP), which is a pool of approximately 29 governmental agencies around the state. The group consists of 14 county, 12 city and 3 school districts. Due to the membership in the IGHCP, the City has seen smaller than average increases in healthcare premiums over the past few years. These small increases have helped contain our costs. The City joined IGHCP in FY 2008. The City also self-insurance a portion of the expenses. The Technology fund was created several years ago to account for general technology purchases city-wide. Department contribute $5,000 of their allocated local option sales tax receipts that are use din conjunction with a general contribution form the Capital Improvement reserve to fund technology purchases. Items purchases out of this fund include the yearly computer rotation, new software/programs that benefit the whole city, and the city's managed care contract with Solutions. In November 2001, residents of the City of Spencer were asked to impose a hotel and motel tax at the rate of 5% on all rooms in the City of Spencer. The vote passed and the tax became effective January 2, 2002. Under State Law, the revenue generated by the hotel/Motel Tax shall be spent as follows:

* Each City which levies the tax shall spend at least 50% of the revenues derived therefrom for recreation, convention, cultural or entertainment facilities; or for the promotion and encouragement of tourist and convention business; * The remaining revenues may be spent by the city for any purpose authorized by law.

In November 2010, residents were asked to increase the tax rate from 5% to 7%, the maximum amount allowed under State Law. The vote passed and the tax rate change became effective January 1, 2011. The City uses the money generated by the additional 2% increase to fund tourism functions and the Clay County Convention and Visitors Bureau .

Budget Review

Total expenditures for the Other General Government department totaled $3,750,894.34 for FY 18, an increase of $508,386.05 (+15.68%) compared to FY 17. There is now one primary cause for the increase in expenditures as almost all funds associated as Other General Government expenses saw an increase in expenditures. The General Other General Government saw an increase in the amount of money transferred out of the General Fund at year end. Money was set aside to combat the Emerald Ash Borer, SRTS projects and Econ Development projects as well as the General Fund portion of FICA & IPERS contributions. Safe Routes to School (SRTS) capital fund saw an increase in expenditures due to related capital projects. Including the purchase of additional radar speed sign, flashing crossing beacons and the construction of the 8th Street SE sidewalk. Hotel-Motel Tax expenditures increased due to an increase in contributions to local service agencies and an increase in the transfer of funds to support capital projects. Technology Fund expenses increased due to the addition of a Managed Services contract with Solutions, Inc. to provide ongoing monitoring and updates to the city's computer system and network.

Group Insurance also increased due to an increase in premiums paid on behalf of employees. Overall the department expended 134.14% of the budget allocated as Other General Government.

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