5.2. & 5.3. SR 12-09-2002 - Laserfiche WebLink

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city tax levy can increase substantially and yet the city tax rate only increased moderately. It is safe to assume that most property owners saw an increase in their valuation, and accordingly, most property owners saw more than a 2.1 percent increase in their city taxes. Additionally, Sherburne County has recently advised the city about the estimated 2003 tax rates. The total tax rate for 2003 is projected at 136.37. This is a decrease from the 2002 tax rate of 139.799. Finally, this budget memo would not be complete unless a comment or two is made regarding the state budget problems. According to the most recent information available, the state is facing a $4.5 billion deficit over the next two and a half years. This deficit includes over $300 million that must be addressed before the end of June 2003. The balance of the deficit is for the 2003-05 budget. The governor-elect indicated that he believes the deficit can be addressed with spending reductions. Elk River receives $937,150 from the state as local government aid (LGA). It is very, very, likely that this program will be reduced for 2004 and beyond. At this time the concern is whether or not cuts will be made in promised 2003 LGA. If cuts are made to the 2003 LGA program, then the city will either have to reduce expenditures and/or use fund balance reserves to balance the budget. Attachments · 2003 General Fund Revenue Pages · 2003 General Fund Expenditure Page · Special Revenue Funds Summary Page · 2003 Tax Levy Resolution. Recommendation It is recommended that the City Council approve Resolution 02-__ authorizing the 2002 proposed tax levy for collection in 2003. It is recommended that the City Council approve a motion adopting the 2003 municipal general fund budget and the Special Revenue funds. S/Council/Pat/Budget/ApproveBudget&FinalTaxLcvy