CASHTON

FY

City Of Cashto

TABLE OF CONTENTS

Contents

Problem #1 Proposed Changes___________________________________________________________________________1

Problem #2 Local Fire Department______________________________________________________________________2

Problem #3 Funds and Cash Flow________________________________________________________________________4

City Of Cashto

CITY OF CASHTON FY2015 BUDGET PROPOSAL

Expense 2014 Budget 2015 Proposal $ Change % ChangePersonnel $298,471 $305,475 $7,004 2.35%Supplies $21,000 $17,000 ($4,000) -19.05%Services $74,871 $76,564 $1,693 2.26%Capital $12,000 $85,000 $73,000 608.33%

Problem # 1Proposed Changes

Listed below is the proposed dollar amount change ($) and percentage change (%)

proposed for next year’s budget.

CITY OF CASHTON FY2015 BUDGET PROPOSAL

Problem #2 Fire Department

Shown below is a table demonstrating the staffing and pay rates of the local fire department.

A.

Position # of PositionsAnnual Salary ($) Total Salary

Social Security Medicare Pension

Health Insurance

Uniform Allowance

Chief 1 97,000 97000 5580 1406.5 2910 11160 1000Deputies 4 63,000 252000 15624 3654 7560 44640 4000Captains 16 52,000 832000 51584 12064 24960 178560 16000Firefighters 48 48,000 2304000 142848 33408 69120 535680 48000Clerical (part-time) 9 26,000 234000 14508 3393Totals 3719000 230144 53925.5 104550 770040 69000

Total Payroll Costs $ 4,946,659.50

B.

Payroll Statistics

Salaries account for 75.18% of all payroll costs

Benefits account for 19.08% of all payroll costs

Total benefit cost for an average full-time employee $13,675.22

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CITY OF CASHTON FY2015 BUDGET PROPOSAL

C.

Estimated Cost for an Additional FTE

SalaryAverage Benefit Cost

Social Security Medicare

Pension

Health Insurance Uniform Allowance

50000 13,675.22 3100 725 1500 930.00 1000

Estimate for Fulltime Employee $70,930.22

This figure is found by using the averages calculated above. First, we add the estimated salary and the average benefit cost. Next, we take 6.2% of the estimated salary and add it to total. Lastly, we add 1.45% of each salary for Medicare, 3% of salary for pension, the health car subsidize of $930, and the uniform allowance of $1,000, to the total cost.

Fire Department Expansion Project

Mayor Trexler has proposed expanding the Fire Department by hiring an additional 5 firefighters and 2 additional clerical staff. The mayor has also expressed interest in increasing salaries by 4%. The table below demonstrates the proposal’s costs.

Position # of PositionsAdditional Salary ($) Total Salary

Social Security Medicare Pension

Health Ins.

Uniform All.

Chief 1 3,880 3880 0 56.26 116.4Deputies 4 2,520 10080 156.24 146.16 302.4Captains 16 2,080 33280 128.96 482.56 998.4Firefighters 48 1,920 92160 119.04 1336.32 2764.8Add. Firefighters

5 49,920249600 15475.2 3619.2 7488 55800 5000

Clerical (part-time) 9 1,040 9360 64.48 135.72Add. Clerical 2 27,040 54080 3352.96 784.16Totals 452440 398360 15943.92 5776.22 11670 55800 5000

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CITY OF CASHTON FY2015 BUDGET PROPOSAL

Grand Total: $944,990.14

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CITY OF CASHTON FY2015 BUDGET PROPOSAL

Problem #3 Cashton Cash Budgets

General Fund:

Parks General:

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CITY OF CASHTON FY2015 BUDGET PROPOSAL

Motor Vehicle:

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CITY OF CASHTON FY2015 BUDGET PROPOSAL

Cumulative Capital

Budget Details

B.

The budget is not balanced as it is proposed, it ends with a surplus.

Ending Balances by Fund

General Fund: Ending Balance: 857,616

Parks General Fund: Ending Balance: 100,746

Motor Vehicle: Ending Balance: 375,347

Cumulative Capital: Ending Balance: 898,533

Total Ending Balance: 2,178,242

Total Net Income: 355,952

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CITY OF CASHTON FY2015 BUDGET PROPOSAL

C.

Cash Flow ProblemsCashton is expected to have cash flow problems during the following months and funds:

General Fund: March, April

Parks General: February, March, April, September, October

D.

Cash Flow Solutions1. Cashton could wait a month or two before buying the 3 new police cars. This would

help alleviate the cash flow problems in the general fund.2. Cashton could offer an even bigger discount for people who pay their property

taxes a month or two earlier. This would rearrange when Cashton has money on tap in the General fund and possible help the Parks General Fund.

3. Cashton could reduce the amount of supplies it buys in the months before they receive property taxes and before the pool opens. This would allow for there to be a greater source of income before it buys supplies in the Parks General Fund.

4. Cashton could reduce the amount of seasonal payroll it hires or pays during the summer months in the Parks General Fund.

5. Cashton could make an appropriation from the Motor Vehicle fund or Cumulative Capital Fund to the parks general fund.

6. Cashton could buy an icy machine and/or sell concessions at the pool to help increase revenues for the Parks General Fund.

E.

Reserve Fund Balance Cash Reserve: 857,616

No, the majority of money in that fund should be redistributed to other funds to help alleviate any cash flow problems predicted in the budget. It is also irresponsible for a public agency to keep a large fund reserve unused. The money collected for that fund is supposed to be used in the most efficient way to maximize the public good it can potentially create. The large reserve fund could be used to create more sidewalks, build more parks, or even improve a local school.

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