09-09-2002 Council Packet - Laserfiche WebLink

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SEP 0 9 2002 OUYU^ OHONO REQUEST FOR COUNCIL ACTION DATE: September 4,2002 ITEM NO; ip Department Approval: Name Ron Moorse Title City Administrator Administrator Reviewed:Agenda Section: City Administrator's Report Item Description: Proposed 2003 Budget and Tax Levy Attachments: 1. Tax Levies*Actual 2002 vs. Proposed 2003 2. Tax Capacity, Local Levy, and Tax Capacity Rates 3. Effect of 2003 Tax Levy and Budget on Property Owners 4. Resolution Adopting the Proposed 2002 Tax Levy Collectible in 2003 5. Resolution Adopting the Proposed 2003 Budget Proposed 2003 Budget The proposed 2003 budget reflects an effort to limit expenditures in order to comply with a state- imposed levy limit, as well as to deal with other limited revenues, while maintaining current service levels and providing fimding for upcoming fire equipment and facility needs. General Fund Budget The proposed 2003 General Fund budget expenditures are $4,712,880. This is an increase of $105,283, or 2.28% over the 2002 budget. While the proposed budget reflects necessary expenditure increases related to items such as annual compensation adjustments, fire service costs, enhanced information technology, and motor fuel; the small overall expenditure increase was made possible by a number of significant reductions in other expenditure items. The most significant expenditure reduction resulted from the elimination of two staff positions. Tax Lew. Tax Rate, and Impact on Property Owners The total tax levy required to fund the proposed 2003 budget is $3,098,400. This is an increase of $172,065, or 5.88% over the 2002 Levy. This increase is necessary both to fund the General Fund budget expenditures, and to provide funding for upcoming fire equipment and facility needs. The estimated tax capacity for taxes payable in the year 2003 is $15,549,329. This is an increase of $1,701,834, or 12.29% over the 2002 tax capacity. Based on the City’s increased tax capacity and the proposed tax levy, the tax capacity rate will be 19.809%. This is a reduction of 5.49% from the 2002 tax capacity rate. The reduction in the tax capacity rate will result in a minimal increase in the City’s share of the property tax bill. Assuming a 10% increase in a home ’s property value, the City’s share of the property tax bill will increase 4%. For a home valued at $200,000, this is an increase of $16.60. For a home valued at $350,000, the increase is $29.05. For a home valued at $500,000 the increase is liiamiai