10.4 SR 07-01-2013 - Laserfiche WebLink

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The 2013 levy and the 2014 levy illustration for all the funds assuming no change in General Fund in the total levy is shown below: Actual Estimate Levy Limit 2013 2014 Difference 2014 General Fund 9,203,085 9,203,085 - 9,256,689 Li bra ry 63,100 63,100 - 63,100 Surface Water Management 50,000 50,000 - 50,000 Debt Service 643,497 371,459 (272,038) 371,459 Economic Development Tax Abatement 216,083 202,824 (13,259) 202,824 Total 10,175,765 9,890,468 (285,297) 9,944,072 • Tax abatements decrease due to United Health abatement being fulfilled in 2013. • Surface Water Management levy could change based on upcoming storm water fee discussion. • Debt Service levies are adjusted for principal and interest payments on the special assessment bonds and the reduction of the street reconstruction bonds with the new pavement management program. Consumer Price Index (CPI) The CPI for the Midwest region is currently trending at about a 1.8%increase (as of May) for 2013. Change in Net Tax Capacity Last year, the city Net Tax Capacity (NTC) decreased 6.45%. The County Assessor estimates a zero percent change in NTC for taxes payable 2014. He indicated residential values increased about$32 million,but commercial / industrial (C/I) decreased about$16 million. Based on the tax capacity rates for the different property types (1% res vs. 1.5%-2% C/I), these should cancel each other out. This may change as more accurate numbers will be available before the final levy is adopted. For planning purposes,we anticipate using the 0% NTC as the starting point for the budget process. Trends appear to be moving upward over the next couple of budgets. Pay and Benefits Pay and benefits will follow other labor agreements with cost of living adjustments. State Aid For the first time in several years we are certified to receive Local Government Aid (LGA). The preliminary amount is $225,882. We propose to budget LGA in the Equipment Replacement Fund and increase the ERMU transfer in to the General Fund by a corresponding amount. As you may recall, the transfer from ERMU is allocated to the General Fund and Equipment Replacement Fund. If future LGA is eliminated or reduced,it is easier to adjust equipment needs and reprioritize the replacements than make immediate General Fund operational changes. Transfer In Transfers are made each year to the General Fund from the Waste Water,Liquor, Garbage, FDA, and HRA Funds to cover costs associated with providing services to those funds. We will review the transfers to ensure they cover services used. The exception is the Liquor Fund transfer,which is significantly higher to offset other operating expenditures. N:APublic Bodies\Agenda Packets\7-01-2013\Final\x10.4 Budget Overview.docx