8.1. SR 12-02-2013 - Laserfiche WebLink

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City of Elk=' Request for Action River To Item Number Mayor and City Council 8.1 Agenda Section Meeting Date Prepared by General Business December 2, 2013 Tim Simon, Finance Director Item Description Reviewed by 2014 Budget and Tax Levy Cal Portner, City Administrator Reviewed by Action Requested Motion by Council to adopt the following: • Resolution authorizing the property tax levy for collection in 2014 • The 2014 General, Special Revenue, and Enterprise Fund budgets Background/Discussion In May, city departments began working on the 2014 department goals and the requested budget. From June through September, staff met with Council to discuss their 2014 goals and expenditure details. Based on Council review and discussion with staff, budgets were adjusted and amended. In September, the Council approved the proposed (maximum) tax levy that was used to calculate the city tax capacity rate for the 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 3. The following is a summary of the 2013 tax levy resolution for taxes payable in 2014 and the budget: • The proposed (maximum) tax levy is $9,929,235 which is a decrease of$246,530 or 2.42% over last year. The Council has directed staff to draft a final tax levy resolution of$9,853,835 which is a decrease of$321,930 or 3.16% over last year. • The General Fund budgeted expenditures is $12,870,500 which is a .26%increase over 2013. Subtracting out the one-time expenditure of the health insurance increase and ERMU funding the additional IT hours for the IT position,the budget would decrease .13%. • The 2013 tax levy resolution for taxes payable in 2014 is lower than the tax levy resolution in 2007 for taxes payable 2008. Tax Levv On November 18, the Council reviewed budget options and discussed decreasing the final levy for taxes payable 2014 by$75,400 to $9,853,835 which is a 3.16% decrease from the taxes payable 2014 adopted levy. The preliminary estimated Net Tax Capacity (NTC) increased by.61% to $20,323,921 for taxes payable in 2014. Last year,the NTC decreased 6.45 percent. The main reason for the change relates to some market value increases and new growth. The final NTC will change slightly as the county makes final corrections and adjustments before calculating taxes in early 2014. The tax capacity rate based on the maximum tax levy is 48.85%. With the proposed $75,400 levy reduction,if approved, the tax capacity rate will be adjusted downward to approximately 48.48%. P a w E R E U 6 Y NaA f RE]