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<br /> <br />Item # 5.5. <br /> <br />MEMORANDUM <br /> <br />DATE: <br /> <br />Mayor and City Council 1/ /J <br />Pat Klaers, City Adminisfl'ki~ <br />September 13,2004 <br /> <br />TO: <br /> <br />FROM: <br /> <br />SUBJECT: <br /> <br />Consider Tax Levy Resolutions and Discuss 2005 Budget <br /> <br />On September 7, 2004, tbe City Council met for tbe tbird time to discuss tbe 2005 budget <br />and tax levy. At this meeting, and consistent witb tbe Council consensus on August 23, 2004, <br />tbe Council decided tbat tbere should be no city tax rate increase for next year. Furtbermore, <br />it was noted tbat cuts in expenditures (in tbe supplies and otber services/charges categories) <br />in the amount of $112,500 will be made from tbe draft budget tbat was presented on August <br />23, 2004. <br /> <br />The City Council on September 7, 2004 also decided tbat it would levy to tbe maximum <br />available provided tbat no city tax rate increase takes place. The Council decided tbat <br />available funds, based on a 16.1 % increase in tbe city Net Tax Capacity (NTC), would be <br />used mainly for staff additions. The Council also decided tbat some equipment items should <br />be moved into tbe general fund. In this regard, a few proposed expenditures from <br />equipment reserves will be placed into tbe general fund. <br /> <br />All tax decisions at this point are preliminary and nothing can be finalized until December <br />2004 after the required Trutb-in-Taxation public hearings. In December, tbe City Council <br />can decrease its proposed tax levy amount but it cannot increase tbe amount from what is <br />established in September 2004. <br /> <br />Witb a 16.1% increase in tbe city NTC and no city tax rate change, then tbe tax levy amount <br />will be $7,623,985 (see attached resolution). This is tbe same amount tbat was discussed and <br />presented on September 7, 2004. <br /> <br />The final details of tbe general fund expenditures budget are still being put into place as <br />tbere have been recent changes made in all of tbe budget categories - personal services, <br />supplies, otber services/charges, and capital outlay/transfers. The budget total is proposed in <br />tbe amount of $9,281,950. This is a 17.86% or $1,406,550 increase over tbe adopted 2004 <br />budget. The 2005 budget include tbe addition of two part-time employees and seven full- <br />