8.2. SR 11-13-2001 - Laserfiche WebLink

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MEMORANDUM Item 8.2. TO: FROM: DATE: SUBJECT: Mayor and Council ~--/(J~x~ Pat Klaers, City Admi ~,~- NoYember 13,2001 Status of 2002 Budget Proposal The purpose of this agenda item and memo is to provide the City Council with a brief update of the current status of the proposed 2002 general fund budget. The balancing of the 2002 budget has not yet been completed but we are getting closer. Council input on "where we are at and how we got there" would be appreciated. December is the traditional budget approval timeframe and the 2002 budget is scheduled for Council consideration at its December 10, 2001, meeting. At our last City Council budget discussion on September 4, 2001, the general fund was $111,600 away from being balanced. Attached for your information, is the September 4, 2001, summary page from the finance director, which showed how we moved from the July 2 deficit to the September 4 deficit. Also attached are the proposed maximum tax levy resolution approved by the Council on September 4 and an update of the capital outlay (equipment) list. Recently the city received information from the county regarding new property values for 2002. Finance Director Lori Johnson has distributed this information to the Council. This material included an update on the status of the city's proposed tax rate. The city rate is increasing from 30.596 to 43.544. Please note that this is only an estimate based on the information provided by the county. A city tax rate in the mid-40's is expected to be commonplace for municipalities in 2002. Regarding our current $111,600 budget problem, please see the attached two pages of possible adjustments. Once again, the problem got slighdy worse before it got better due to some budget omissions and necessary changes. After all the changes, this information shows that the city sdll has a $18,600 budget problem in the general fund and it should be noted that additional budget adjustments are going to be hard to identify. Staff is very reluctant to increase any budget revenues, especially building and construction related revenues, due to a potential downturn in the economy. Some of the budget program additions for 2002 include: