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adjustments may need some additional discussion and explanation on <br />Wednesday evening. <br /> <br />In addition to the changes noted above and in the attachments, the finance <br />director has advised me that the state has finally provided us with our PERA <br />information and the estimate in the August 7 draft budget is low. The city is <br />going to receive an additional $6,850 in PERA aid so this has to be added to <br />our 2001 revenues. This additional PERA aid further reduces the budget gap <br />to a new total of $230,300. <br /> <br />The newest preliminary levy sample (dated 8/30/00) shows a city tax levy <br />increase of 10.453 percent. This levy sample is based on the NTC growth of <br />10.46 percent and no change in the city tax rate. It must be emphasized that <br />this is simply a NTC estimate and it will be nearly impossible to make a <br />decision that will result in the exact same tax rate in 2001 as compared to <br />2000. Nonetheless, using the estimate from the county and keeping the tax <br />rate the same, results in an additional $218,100 in tax revenues being <br />available. If all of this amount is levied and used for the General Fund, then <br />the city has a budget gap of $12,200. This amount can easily be dealt with <br />and, in fact, may be able to be dealt with by the police department. (The chief <br />included a memo in the 8/28 packet on funding help for the sergeants' <br />vehicle.., if the council believes this to be an appropriate addition to the <br />police department fleet.) <br /> <br />As you can tell, the budget gap can be solved and a balanced budget approved <br />with no tax rate change, but the council may want to look at some budget <br />issues and programs before finalizing the 2001 proposal. For example, the <br />council may want to increase the amount transferred for the ice arena deficit, <br />or increase the amount of money being put away for city hall maintenance <br />and repair, or the council may question the revenue increases being <br />suggested. These type of changes would require some offsetting adjustments. <br /> <br />While there are no levy limits on municipalities for 2001, there is always a <br />concern that limits could come back in 2002 or a future year. That being said, <br />the council could still consider some budget cuts that would result in a tax <br />rate decrease. Such a decision would require further budget amendments, but <br />this certainly could be looked at and evaluated. <br /> <br />Little has been discussed by the council as it relates to priorities for programs <br />and whether an increase or decrease in certain levels of service is desired. <br />Programs to be looked at by the council could include Cable TV, fire <br /> <br /> <br />