5.4. SR 12-06-2010 - Laserfiche WebLink

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REQUEST FOR ACTION To Item Number Ci Council 5.4. Agenda Section Meeting Date Prepared by Administration December 6, 2010 Lori ohnson, Ci Administrator Item Description Reviewed by 2011 Budget and Tax Levy Presentation; Public Comment; Consider Resolution Adopting Final Tax Levy for Taxes Payable Reviewed by in 2011; and Consider Adoption of 2011 Budget Action Requested After staffls presentation of the budget and tax levy and following public comment: • Adopt the resolution authorizing the property tax levy for collection in 2011 • Adopt the 2011 General, Special Revenue, and Enterprise fund budgets Background/Discussion In May staff began developing the 2011 budget based on Council direction that the 2011 tax levy would be held to the 2010 amount and the understanding that the certified 2011 Local Government Aid (LGA) of $686,800 would not be included in the budget due to the uncertainty of actually receiving the aid. The proposed tax levy and draft budget were subsequently presented and discussed by the City Council at seven public meetings prior to this meeting. Starting in July, staff met with the Council to discuss in detail the 2011 departmental goals and the expenditure requests needed to achieve those goals and to continue to provide service at the highest level possible within the financial resources available. In September the Council approved the proposed tax levy that was used to calculate the City tax for the proposed property tax notices that were mailed to each property owner in November. The proposed levy adopted by Council is well below the amount allowed by levy limit law. As you are well aware, the final levy may be less than, but may not be more than, the levy approved in September. Further, in November budget adjustments were discussed to eliminate the $205,000 deficit in the draft budget. At the November 8 Council meeting, the Council agreed upon adjustments to balance the preliminary budget resulting in a proposed $12,500,050 General fund budget. Tax Lew: -~- The proposed tax levy for 2011 is $11,112,391. As I stated earlier, this is identical to the 20101evy and is $78,362 less than the 20091evy. The preluiiinary estimated net tax capacity (NTC) decreased 3.10 percent to 24,257,908 for taxes payable 2011. Last year the NTC decreased 3.54 percent. Hopefully, this is an indication that the market values have started to stabilize. The final NTC will change slightly as the county makes final corrections and adjustments before calculating taxes in early 2011. Plus, tax increment financing district 21 was decertified effective December 31 and will be added to the NTC in 2011. Although the tax rate estimate indicates a slight increase, many property owners will realize a decrease in their City property tax because their property value decreased. As you can see on the attached property N:\Public Bodies\City Council\Lori\2010\Budget Memo 12 06 l0.doc