9.3. SR 06-02-2008 - Laserfiche WebLink

Home Browse Search

ITEM # 9.3 fiver MEMORANDUM TO: Mayor & City Council FROM: Lori Johnson, City Administrator DATE: June 2, 2008 SUBJECT: 2009 Budget Discussion Because of the short agenda on Monday, zve decided to adjourn to worksession to begin budget discussions. We aze still in the process of pulling together all of die budget data that was due from deparument heads on 'Vlac 23. For that reason we do not have all of the information compiled pet However, we can begin by discussing the administration budgets that are smaller and usually don't have much that changes. first, onllonday before we get ntto the expenditure budgets, T would like to start the discussion by reviewing the property tax situation. As you know, recent legislation placed levy limits- on the City fox 2009 limiting the levy to an increase of 3.9 percent plus one half of die percent of household growth and one half of the percent of the increase in new commmercial industrial value. We do not have the household and commercial nldustrial value data yet so we arc unable to calculate the levy limit precisely at this time The Depaxtenent of IZ C~'CII LLC will be sendhig that information out the fast part of July. However, if the Council continues to support keeping the tax rate the same or even decreasing it slightly, that u~ay be the limiting factor, not Icvy limits. The very preliminary information on net tax capacity growth we have from the Sherbiune County [auditor's offtce indicates growth of less than three percent That means drat if the tax rate stays the same, $322,973 of new tax revenue would be generated. The 39 percent levy limit increase generates approximately ~5394,OOD; increases in household and C~[ growth would be added to that. The building and deaelopment revenue projections will decrease fox 2009 so some of the additional tax revenue will be needed to offset those reductions. That doesn't leave much room for expenditure increases-. Next, after discussing tax revenue, we will review die'_Vlavor and Council, adnunist7adon, cable TV', legal, human resources, and contingency budgets. Council member Zerwas indicated interest in reciewing du Mayor and Co~mcIl budget before it was reviewed at the meeting so he received a copy >ii advance to provide input to staff. I believe the main discussion on bZonday will center on the cable TV budget and what direction the Council wants to take with the City's cable channel.