5. SR 12-01-2008 - Laserfiche WebLink

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showing how this deficit can be eliminated. Fortunately, gas prices have dropped quickly and significantly allowing for another $0.25 per gallon reduction bringing the budget per gallon down to $3.25. This is a savings of $17,600 in addition to the $35,200 reduction in fuel already approved by the Council. Another unexpected but significant budget reduction is available because the environmental administrator has asked to voluntarily continue her reduced schedule of 32 hours per week for a savings of $17,000. Other adjustments include reducing lockout fee revenue by $4,000 based on the Council's desire to keep the fee at $20. Several other staff adjustments and corrections are identified on the spreadsheet. Prior to the reduction to the environmental administrator, there was a still a budget deficit of $6,950. However, with the $17,000 adjustment for the environmental administrator, there is a balance of $10,050. As a result, the levy could be reduced by that amount or the contingency could be increased by that amount to offset any potential shortfalls in revenues, including the potential for reductions in state aids, permit revenues, and interest income or it could be reserved for election expenses that will be in the 2010 budget that are not in the 2009 budget. Following the public hearing, the Council can discuss the proposed budget adjustments and tax levy. The final levy and budget must be adopted at a subsequent meeting. However, direction from the Council is requested at this meeting so the appropriate tax levy resolution can be prepared. Below is a summary of the budget and tax levy as proposed: ^ Estimated tax rate based on proposed levy - 43.210% o This is an increase from last year's tax rate of 42.494% o The net tax capacity is estimated by Sherburne County to increase 2.63% to 25,991,157 ^ Proposed levy - $11,230,878 o Increase of $469,567 o Increase of 4.36% ^ Tax rate targeted by Council - 43.056 o This reduces the levy to $11,190,753 o Increase of $429,422 o Increase of 3.99% ^ Proposed General Fund budget - $12,683,050 o Increase of $189,600 o Increase of 1.52% o Revenues by Source ^ Taxes - 76.7% ^ Intergovernmental Revenues - 7.8% ^ Charges for Services - 4.6% ^ Fines and Forfeits -1.2% ^ Licenses & Permits - 2.8% ^ Other Revenues - 2.0% ^ Transfers & Use of Reserve - 4.7% o Expenditures by Category ^ General Government - 21.6% S:\Council\Lori\2008\Tmth in Taxation PH.doc