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REQUEST FOR COUNCIL ACTION <br />^4 <br />DATE: Scptemfeft^9^'% <br />ITEM NO: / ^ ^ <br />Administrator Reviewed:Department Approval: <br />Name Ron Moorse <br />Title City Administrator <br />Item Description: <br />Adoption of Preliminary 1997 Budget and Tax Levy <br />Agenda Section: <br />Administrator’s Report <br />Attachments: 1. <br />2. <br />Resolution Adopting the Tax Levy Required to Fund the 1997 Budget <br />Proposed 1997 General Fund Budget Expenditures and Revenues <br />Background <br />State law requires cities to adopt a preliminary budget and tax levy by September 15 of each <br />year. The levy approved as of this date will be reflected in Truth-In-Taxation information <br />provided to all property owners. The levy cannot be increased but can be reduced prior to final <br />budget adoption after the Truth-In-Taxation hearings in December. The budget itself can also <br />be changed during this same time period. <br />Proposed 1997 Budget <br />The proposed 1997 budget is fiscally conserv'ative in that it maintains current service levels while <br />positioning the city to address a number of long term fiscal issues. These issues include the <br />following: <br />1. Funding for storm water drainage projects. <br />2. Funding for street repair and replacement. <br />3. Funding for priority sanitar>’ sewer projects. <br />General Fund Expenditures <br />The proposed 1997 General Fund Expenditures, those with the greatest impact on the tax levy, <br />are $3,447,605. This is an increase of $99,850 or 2.9% over the 1996 General Fund Budget. <br />This reflects an effort to hold the line on expenditures while maintaining and improving current <br />service levels. <br />Tax Lew <br />The tax levy required to fund the total 1997 budget is $2,161,630. This is an increase of <br />$80,790 or 3.88% over the 1996 levy. The portion of the tax levy required to fund the General <br />Fund Budget is $1,680,980. This is an increase of $33,040 or 2.0% over the 1996 General <br />Fund Levy. The major reason for the 3.88% overall levy increase is a levy of $45,500 to <br />enable a substantial increase in the city ’s street repair program. This levy amount positions the <br />city to address both short term and long term street repair needs.