09-23-2019 Council Packet - Laserfiche WebLink

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Prepared By: RJO Reviewed By: DJR Approved By: DJR 1. Purpose. The purpose of this agenda item is adopt the 2020 Preliminary Tax Levy. 2. Background. By State Law the City is required to adopt a preliminary property tax levy by September 30th. The property tax levy has three components. The first is the operating levy which is adopted to fund the General Fund Operating Budget. The second part is the Pavement Management Levy that is needed to fund the City’s pavement maintenance plan. The final levy component is for the debt service of the City’s outstanding bonds. The breakdown of the tax Levy is as follows. General Fund - Operating $4,679,000 Pavement Management $617,450 Debt Service $711,000 Total $6,007,450 When compared to the 2019 tax levy, the 2020 levy is increasing by $372,000 or 6.6%. The levy for the General Fund increasing 6.8%, the Debt Service Levy staying level, and the Pavement Management Levy is increasing by $73,000. As discussed in the budget memo, $80,000 of the increase in the General Fund is to cover an accounting change for routine street maintenance which has been moved from the Pavement Management Fund into the General Fund. This means that the total increase in levy for streets is $153,000 and reflects the City Council’s desire to have a fully funded road program. The Debt Service Levy will remain at $711,000 until the 2023 levy year. That year the levy for debt will decrease by $294,470 to a total of $416,530. 3. Staff Recommendation. Staff Recommends approval of the 2020 Preliminary Tax Levy. COUNCIL ACTION REQUESTED A motion to adopt the attached resolution adopting the 2020 Preliminary Tax Levy. Exhibits A. Levy Graph B. Debt Schedule C. Resolution Item No.: 13 Date: September 23, 2019 Item Description: Adopt 2020 Preliminary Tax Levy Presenter: Ron Olson, Finance Director Agenda Section: Finance Director Report