3.0. SR 08-30-1999 - Laserfiche WebLink

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2000 Budget August 26, 1999 Pal!e 3 . should note that if the equipment certificate total is reduced, it will have only a minor impact on the budget gap. Any reduction will free up a small amount of tax revenue which could be applied to the general fund. For example, eliminating a $25,000 police vehicle from the equipment certificate budget would free up about $6,000 in tax revenues that could go into the general fund. The total tax levy for the equipment certificates in 2000, as shown on the tax levy page, is $57,500 and this is compared to the 2000 expenditure total of $215,800. . . OTHER MATERIAL Only two of the supplemental budget pages are attached. These two budgets are for the public library and the ice arena. The EDA and HRA budgets have been reviewed by their respective bodies, and the tax levies have been endorsed and recommended to the City Council for approval. The equipment certificate and equipment reserve information is on the capital outlay page. The special assessment and surface water management totals are shown on the tax levy page, and the sanitary landfill budget will be presented at a later date. All of the expenses for the sanitary landfill budget are funded by sanitary landfill revenues. Other attachments in this budget packet include a county letter regarding when our tax capacity amount will be known. It does not appear that we will have this information for the 8/30 worksession, but it is hopeful that this information will be available in time to be useful to us prior to certifying our proposed maximum levy on September 15, 1999. This county letter indicates that the proposed NTC increase of 5 percent may be high. Also attached is the county information regarding Truth in Taxation public hearing dates in December. A special Council meeting for the budget on Monday, 12/6 with a follow-up meeting date of Monday, 12/13 after the EDA meeting should be discussed. Finally, the state information is attached on the October public hearing requirement if additional tax revenues are being generated. The City of Elk River falls within this category, and we should plan on conducting a public hearing in October and adopting a resolution which indicates that the levy certification tax rate will be going up. The city has a 2000 general fund budget gap of $239,300 and an ice arena budget gap of $64,500. Obviously the way to close the budget gap is to raise revenues and to cut expenditures. The main revenue source in the general fund is taxes (56 percent of the total). The main expenditure in the budget is for personal services, and some cuts in the requested additional employee list will be required. To help balance the budget and/or finance equipment expenditures, the council should discuss the possibility of a franchise fee on the gas company. This would