6.0. SR 07-14-2003 - Laserfiche WebLink

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, mlve r TO: FROM: DATE: SUBJECT: MEMORANDUM Mayor and City Council Pat Klaers, City Administrator July 14, 2003 Staff Updates: 2004 Budget Item # 6 I will provide the Council with a verbal update on the items listed on the agenda as "staff updates." The following memo relates to the 2004 budget staff update item. I would like for the City Council to start thinking about the 2004 municipal budget. Any feedback you can provide me on your budget goals would be appreciated. The 2004 budget, at this time, looks like it is going to be "skimpy" in terms of being able to afford additional services, programs and employees. Accordingly, the budget goals of the City Council for 2004 may be much different than the budget goals that we have seen in the past or which we may see in the future. As everyone knows, the city ~vill be receiving $644,138 less in local government aid (LGA) in 2004 as compared to the original 2003 figure. As I understand the legislation that was approved, the city will be allowed to recapture 60% of this reduction through increased property taxes. The State Legislature approved levy limits for 2004 that included this provision. At this time, I am assuming that the City Council will take advantage of this opportunity and increase its tax levy for general government activities by $386,482 (this is 60% of $644,138). Hopefully, the city tax capacity will increase so that this additional tax levy for general government activities will not result in a substantial change in the city tax rate. If the City Council is not interested in recapturing 60% of the LGA cuts through increased property taxes, then I need to know this as soon as possible. I have requested all of the department heads to start their 2004 budgets at the same point as the recently amended 2003 budget. It will to be very difficult for the departments to live with the status quo and some operations are simply going to require increased expenditures. This is especially true for building maintenance with the new City Hall and Public Safety Facility, and for operating expenses for these two new facilities. Also, as we previously discussed, not all of the adjustments that were made from the originally adopted 2003 budget can be repeated in 2004 so, therefore, there are going to be some "automatic" increases from the amended 2003 budget to the 2004 proposals.