09-08-2003 Council Packet - Laserfiche WebLink

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SEP 0 8 2003 REQUEST FOR COUNCIL ACTION Ct 1 r *-»«* wnuwu DATE: September 4,2002 ITEM NO: H Department Approval: Name RonMoorse Title City Administrator Administrator Reviewed: ________________________ Agenda Section: City Administrator's Report 7 Item Description: Proposed 2004 Budget and Tax Levy Attachments: 1. Tax Levies-Actual 2003 vs. Proposed 2004 2. Tax Capacity, Local Levy, and Tax Capacity Rates 3. Effect of 2004 Tax Levy and Budget on Property Owners 4. Resolution Adopting the Proposed 2003 Tax Levy Collectible in 2004 5. Resolution Adopting the Proposed 2004 Budget Proposed 2004 Budget The 2004 budget reflects an effort to comply with the state-imposed levy limit, and to deal with limited revenues, while maintaining ''urrent service levels and accommodating the additional costs related to the start-up of the Navarre Fire Station. The 2004 budget is a difficult one on both the revenue and expenditure sides. A number of revenue sources have been reduced by a total of approximately S140,000. This includes $63,000 of State Aid, of which only 60 % can be recouped through the property tax levy, .a Ithough the remaining revenue reduction is $102,000, the levy limit will not allow the levy to be increased to offset the reductions. On the expenditure side, several areas of expenditure are increasing in 2004, the most significant of which are related to fire ser\'ice, particularly the costs forgetting the Navarre fire station staffed and operational. Although these start-up costs are only for a three-year period, they are difficult to accommodate in the current budget environment. In an effort to balance the budget, expenditures are proposed to be substantially reduced in a number of areas, and a number of fees and other revenues are proposed to be increased. The focus of this effort is to reduce expenditures in a way that enables the City to continue to provide day-to-day services at current levels. With the exception of fire service, this budget does not allow for increased service levels. There are a number of needs tliat will remain unmet. A number of fees will be increased to better reflect the actual cost ofthe serv'ice provided. The proposed budget also includes the prudent use of reser\es to fund several specific expenditures. r i Ji