09-14-2015 Council Packet - Laserfiche WebLink

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REQUEST FOR COUNCIL ACTION DATE: September 14, 2015 ITEM NO: 4 ________________________________________________________________________ Department Approval: Administrator Reviewed: Agenda Section: Name Ron Olson City Administrator's Title Finance Director Report ________________________________________________________________________ Item Description: Preliminary 2016 Budget and Tax Levy ________________________________________________________________________ Attachments: 1. Tax Capacity Rate 2. Tax Impact on Home Owners 3. Resolutions ________________________________________________________________________ Overview Work on the preliminary 2016 budget was begun by staff at the beginning of June. At the June 22 work session the Council was provided background information on the budget and an overview of the budget challenges for 2015. At the work session, the Council was asked for goals on the tax levy and expenditure levels for the preliminary budget. Based on the Council’s input, a draft budget was prepared and provided to the Council for their review at the July 27, 2015 work session. The draft budget was refined further and the updated draft was presented to the Council at the August 24, 2015 work session. The budget being presented tonight has been to reflect the Council’s input from the three budget work sessions. Tax Levy The preliminary tax levy to fund the 2016 budget is $4,954,480. This is an increase of $182,480 or 3.84%. The tax levy includes a new levy in the amount of $183,000 that is designated to to start funding the long term maintenance of the City’s street infrastructure. The increase in the levy will not increase the overall tax rate, which will continue to be one of the lowest tax rates in the State of Minnesota. Additional information on the tax levy and rate is included as attachment 1.