6.0. SR 09-07-2004 - Laserfiche WebLink

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MEMORANDUM Item #6.0. TO: FROM: DATE: SUBJECT: Mayor and City Council Pat Klaers, City admi~tr~~6f.~ ~ September 7, 2004 ~ Budget Worksession INTRODUCTION On August 9, 2004, the City Council held a worksession to discuss 2005 budget issues. The main topics reviewed at this meeting were taxes and employee additions for 2005. The City Council also met in a budget worksession on August 23, 2004. The main items discussed at this meeting were the proposed 2005 revenues and the proposed 2005 expenditures. Taxes and additional employees were again discussed at this worksession. A third worksession on the 2005 budget is scheduled for Tuesday, September 7, 2004. At this meeting staff needs City Council direction on what to include or exclude from the 2005 budget. We now have Net Tax Capacity (NTC) information from the County so some prelLminary decisions on tax amounts, the tax rate, and employees to add in 2005 should be able to be made at this worksession. On September 13, 2004, the City Council will need to approve the resolutions regarding the proposed maximum tax levy, the EDA tax levy, the HRA tax levy, and a motion calling for the December Truth-in-Taxation public hearing. 2005 PROPOSAL On August 23, 2004, the City Council directed staff to make some reductions in the proposed 2005 expenditures. Specifically, the City Council asked for a 5% reduction in the total that was proposed for the supphes category and the other services/charges category. This 5% reduction amounted to $112,500. Additionally, at this August 23, 2004 worksession, the City Council made no changes in the revenue projections and indicated that they would take a "wait and see" approach on how many employees could be added into the 2005 budget. The number of employees that can be added in 2005 in part depends on the increase in the city NTC because the City Council did indicate on August 23, 2004 that it would not increase the city tax rate.