7.1. SR 12-03-2012 - Laserfiche WebLink

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,l REQUEST FOR ACTION River- TO ITEM NUMBER Mayor and City Council 7.1 AGENDA SECTION MEETING DATE PREPARED BY Public Hearings December 3, 2012 Tim Simon, Finance Director ITEM DESCRIPTION REVIEWED By 2013 Budget and Tax Levy Presentation;Public Comment; Cal Portner, City Administrator Consider Resolution Adopting Final Tax Levy for Taxes Payable REVIEWED BY in 2013; and Consider Adoption of 2013 Budget ACTION REQUESTED • Mayor open the meeting to allow for public comment. • Adopt the resolution authorizing the property tax levy for collection in 2013 • Adopt the 2013 General, Special Revenue, and Enterprise Fund budgets BACKGROUND/DISCUSSION In May, city departments began working on the 2013 department goals and the requested budget. Starting in June-August, staff met with Council to discuss in detail those 2013 goals and the expenditure detail. Based on Council review and discussion with staff, the budgets were adjusted and amended. In September, the Council approved the proposed tax levy that was used to calculate the city tax capacity rate for the proposed property tax notice that was mailed to each property owner in November. As the Council is aware,the final levy may be less than,but may not be more than, the levy approved on September 4. The following is a summary of the 2012 tax levy for taxes payable in 2013 and the budget: • The proposed taxable payable 2013 levy is $10,275,815 which is the same amount as last year. • Since September 4, the budgeted expenditures have been reduced from$13,018,700 to $12,836,950 or 1.25% change from 2012. • The taxes payable 2013 levy is lower than the taxes payable levy in 2008. Tax Levy On November 13,the Council reviewed budget options and discussed leaving the levy for taxes payable 2013 at$10,275,815 which is a zero percent change from the taxes payable 2012 adopted levy. The preliminary estimated Net Tax Capacity (NTC) decreased by 7.54 percent to $19,964,892 for taxes payable in 2013. Last year, the NTC decreased 11.15 percent. The main reason for the large decrease relates to market value decreases. The final NTC will change slightly as the county makes final corrections and adjustments before calculating taxes in early 2013. The tax capacity rate based on the maximum tax levy is 51.497 percent. With the decertification of Tax Increment District 19 and 16 at year-end, the tax capacity rate will be adjusted downward to approximately 50.05 percent when final tax calculations are done in early 2013. There are three main entities: the county, school district, and city, that each receives part of the property taxes paid by property owners. The city receives approximately 32% of the total property tax the II N:\Public Bodies\City Council\Council RCA\Agenda Packet\12-03-2012\2013budget12032012.docx 'POWERED N NATURE