9.2. SR 12-20-1993 - Laserfiche WebLink

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rei ---\) ( ); rl~ ITEM 9.2. TO: MAYOR & CITY COUNCIL FROM: PAT KLAERS, CITY ADM~TRATOR DECEMBER 15, 1993 ~ DATE: SUBJECT: 1994 BUDGET The 1994 Levy Resolution and the 1994 General Fund budget must be adopted at this City Council meeting. At the 12/8/93 levy and budget public hearing, the Council majority directed staff to reduce the tax levy increase from the proposed 8.66% level (urban rate) to the 6% level. This means a $43,500 tax revenue reduction from the original 12/8/93 proposal. A 5% tax levy increase means a $60,000 decrease from the original 12/8/93 proposal. e The 12/20/93 City Council agenda is rather full and if the City Council does not want to pinpoint all of the budget changes, then these decisions can wait until January. If this is the case, then it is suggested that the City transfers in, from its designated cash flow reserve, enough funds to cover the tax reduction that is decided upon by the Council. The City Council can then identify the exact expenditure and revenue changes in the budget in January and amend the 1994 budget. Attached for your review are three tax levy resolutions. All three tax levy resolutions identify the budget amount as $3,394,750 which is the amount that was reviewed by the City Council at its 9/8/93 workshop and is the amount that was presented at the 12/8/93 budget public hearing. The first resolution is the one reviewed by the Council at the 12/8/93 budget public hearing. The second resolution reflects a $43,500 decrease from the first proposal. This is a 6% tax increase. The third resolution reflects a $60,000 decrease from the first proposal. This is a 5% tax increase. If the City Council wants to decrease the General Fund budget at this meeting, or wants to approve a tax levy that is different than one of the three resolutions, then we can receive this direction at this 12/20/93 meeting and the Finance Director can rerun the resolution during a 10 minute City Council recess. Once again, some tax levy resolution which identifies the levy amount and the budget amount must be approved at this meeting. e Possible changes in the proposed budget are numerous. Staff could go back and attempt to trim anywhere from $100 to $1,000 from each individual budget...The Council could decrease the proposed 3% across the board pay adjustments...The City could increase the Liquor Store and/or equipment reserve funds that are transferred into the General Fund budget...The City Council could reduce the seal coating or overlay programs for P.O. Box 490 · 13065 Orono Parkway · Elk River, MN 55330 · (612) 441-7420 · Fax: (612) 441-7425