8.0. SR 11-25-1996 - Laserfiche WebLink

Home Browse Search

Budget Worksession Memo November 25, 1996 Page 3 If the budget gap of $75,400 is closed, the City Council will be looking at a 3 percent increase in the city tax rate. The city tax rate would go from 24.033 to approximately 24.765. This would generate approximately $87,700 worth of additional tax revenue above the increased tax revenue that is already generated by the growth in the city's net tax capacity. If an individual's property value did not increase, and if there was no change in the county or school tax rate, then the city's 3 percent increase in the tax rate would translate to a less than I percent impact on the individual's tax statement. (The city is about 23 percent of the total tax bill.) However, we do know that the county and school are both estimating to increase their tax rate by about 3% percent and we also know that a school bond issue has been approved. (This school bond issue impact on the taxes will not show up on the Truth in Taxation notice.) Staff is comfortable recommending to the City Council a tax rate change of 3 percent from 24.033 to 24.765 for 1997. If the City Council desires to reduce the $87,700 city increase that is generated by the 3 percent tax rate increase, then we will have to seriously look at the additional employees that are being proposed. NON GENERAL FUND 1997 BUDGETS Three non general fund budgets, the enterprise fund budgets, were approved by the City Council on November 18, 1996. These budgets, the liquor store budget, the garbage collection program budget, and the wastewater treatment systems budget, are not attached as you have recently reviewed and approved this material. The EDA and HRA budgets were distributed to the City Council at the 8/26/96 worksession. These budgets and tax levies were approved by the City Council at the 9/9/96 meeting. These two budgets and tax levy resolutions are attached for your information. The sanitary landfill (distributed on 9/9), the ice arena (distributed on 8/26), and the equipment reserve (distributed on 8/26) budgets have no impact on the city tax levy. These budgets are again attached for your review...All of the landfill expenses are financed by the landfill surcharge. Expenditures must relate to waste abatement activities. The budget includes 13 percent of the building and zoning administrator's time to monitor compliance at the landfill, expenses for police services to monitor garbage truck traffic throughout the city, and legal and environmental expenses to ensure compliance at the landfill with local, state, and federal laws. The legal and environmental services are estimated to decrease in 1997 as compared to the adopted 1996 budget, but compares favorably to the actual expenses in 1994