The City of Cashton is proposing its FY2015 budget. It includes proposed changes to expenses with a 2-6% increase across categories. It also discusses the local fire department budget and costs, including proposing to expand the department by hiring more firefighters. The budget projects cash flow problems for several funds in certain months. It provides solutions such as delaying purchases, offering earlier tax payment discounts, reducing seasonal hiring and supplies, and using reserve funds from other departments to alleviate shortfalls.

1. CASHTON BUDGET PROPOSAL
FY 2015
By: JonathonOrr
City Of Cashton

2. TABLE OF CONTENTS
Contents
Problem #1 Proposed Changes___________________________________Error!Bookmarknotdefined.
Problem #2 Local Fire Department_______________________________Error!Bookmarknotdefined.
Problem #3 Funds and Cash Flow ________________________________________________________________ 4

3. CITY OF CASHTON FY2015 BUDGET PROPOSAL
Problem # 1
Proposed Changes
Listed below is the proposed dollar amount change ($) and percentage change (%)
proposed for next year’s budget.
Expense 2014 Budget 2015 Proposal $ Change % Change
Personnel $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%

4. CITY OF CASHTON FY2015 BUDGET PROPOSAL
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Problem #2
Fire Department
Shown below is a table demonstrating the staffing and pay rates of the local fire
department.
A.
Position # of Positions
Annual Salary
($) Total Salary
Social
Security Medicare Pension
Health
Insurance
Uniform
Allowance
Chief 1 97,000 97000 5580 1406.5 2910 11160 1000
Deputies 4 63,000 252000 15624 3654 7560 44640 4000
Captains 16 52,000 832000 51584 12064 24960 178560 16000
Firefighters 48 48,000 2304000 142848 33408 69120 535680 48000
Clerical (part-
time)
9 26,000
234000 14508 3393
Totals 3719000 230144 53925.5 104550 770040 69000
Total Payroll Costs $ 4,946,659.50
B.
PayrollStatistics
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

5. CITY OF CASHTON FY2015 BUDGET PROPOSAL
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C.
Estimated Cost for an Additional FTE
Salary
Average 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 $1,000, to the total cost.
Fire Department Expansion Project
Mayor Trexler has proposed expanding the Fire Department by hiring an additional 5
firefighters and 2 additional clerical staff. The mayor has also expressed interest in
increasing salaries by 4%. The table below demonstrates the proposal’s costs.
Position # of Positions
Additional
Salary ($) Total Salary
Social
Security Medicare Pension
Health
Ins.
Uniform
All.
Chief 1 3,880 3880 0 56.26 116.4
Deputies 4 2,520 10080 156.24 146.16 302.4
Captains 16 2,080 33280 128.96 482.56 998.4
Firefighters 48 1,920 92160 119.04 1336.32 2764.8
Add.
Firefighters
5 49,920
249600 15475.2 3619.2 7488 55800 5000
Clerical
(part-time)
9 1,040
9360 64.48 135.72
Add. Clerical 2 27,040 54080 3352.96 784.16
Totals 452440 398360 15943.92 5776.22 11670 55800 5000
Grand Total: $944,990.14

6. CITY OF CASHTON FY2015 BUDGET PROPOSAL
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Problem #3
Cashton Cash Budgets
General Fund:
Parks General:

7. CITY OF CASHTON FY2015 BUDGET PROPOSAL
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Motor Vehicle:

8. CITY OF CASHTON FY2015 BUDGET PROPOSAL
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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

9. CITY OF CASHTON FY2015 BUDGET PROPOSAL
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C.
Cash Flow Problems
Cashton 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 Solutions
1. 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.