2.0. SR 09-04-2001 - Laserfiche WebLink

Home Browse Search

MEMORANDUM TO: FROM: DATE: Mayor and Council Pat Klaers, City Ad~r September 4, 2001 SUBJECT: 2002 Budget On July 2, 2001, the City Council met to discuss the proposed 2002 city budget. Attached for your review are the minutes from this meeting. On July 2, the city started the meeting with a budget gap of $382,300. This budget gap increased due to city recreation, an additional police officer, and a city prosecutor. On the other hand, reductions included the optical imaging system and the fire department floor repair being removed from the general fund. In other words, we took some steps forward and also took some steps back in trying to eliminate the 2002 budget gap. On July 2 we knew that the special legislative session had concluded but we were not sure that all the bills would be signed into law. Nonetheless, we knew that our budget, tax levy, and state aid situation would change. The most significant issue we have to address is levy limits. On July 2 we didn't know what our levy limit was or what type of increase in Local Government Aid (LGA) we would receive to offset the elimination of the Homestead and Agricultural Credit Aid Program (HACA). This information is now available. As we all know the tax system and formula is changing dramatically. The majority of the burden for financing schools is being removed from the property tax system and will be financed by the State. In this manner, the property taxes are more of a local - city and county - issue. For 2002 it is anticipated (and was intended by the Legislature) that local taxes will increase but overall taxes should decrease in 2002 for property owners. Before discussing expenditures and the state aid, tax, and levy limit revenue issues, the City Council should discuss a number of budget and financial issues, including the following: