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MEMORANDUM <br />.~:~.1. <br />TO: <br />FROM: <br />DATE: <br />SUBJECT: <br />Mayor and City Council <br />Tim Simon, Finance Director <br />November 21, 201 I <br />2012 Budget Discussions (General Fund) <br />2012 Revenue and Expenditure Update <br />On October 17, 2011, when we reviewed the updated 2012 General Fund revenue budget <br />based on the zero percent change in the overall tax levy the amount was $12,598,446. We <br />are now able to eliminate the negative amount for the eliminated Market Value Homestead <br />Credit since the Legislature enacted the new Market Value Exclusion program. This <br />increases general fund revenue to $12,898,450. The expenditure amount prior to any <br />adjustment and after the 2% Cost of Living Adjustment (COLA), is $12,738,700 which is the <br />same as last month. With the same levy as last year, this results in a positive amount of <br />$159,750 in the General Fund. <br />2012 Position Requests <br />Vacant/Requested positions (attachment #1) shows all vacant and requested positions. The <br />only positions in the preliminary 2012 budget are the vacant police officer and engineer tech <br />positions. The city administrator will review the Vacant/Requested positions attachment <br />and the two memos from Human Resources with recommendations for position <br />classification adjustments for Council discussion. The budget currently has an adjustment <br />proposed to increase the Council Contingency line item for. positions. Staff recommends <br />holding specific position additions or funding a particular vacancy until the city administrator <br />has had ample time to consider organizational needs. At that time, we propose to bring a <br />request to the Council for consideration and approval. <br />Net Tax Capacity Update <br />As you recall, based on the information provided by Sherburne County, our overall Net Tax <br />Capacity (NTC) will decrease 11.07%. 5.66% of this 11.07% is related to values and another <br />5.41 % relates to the Market Value Exclusion calculation. The following table compares NTC <br />changes for Sherburne County cities from 2011 to 2012. <br />C:\Users\jjohnson\AppData\Local\Microsoft\ Windows\Temporary <br />Files\Content.Outlook\SFWAYSNS\Budgetdiscussion112111.doc <br />P A 1r E A E~ ~ {` <br />Internet ~~ <br />