12-11-1995 Council Packet - Laserfiche WebLink

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REQUEST FOR COUNCIL ACTION DATE; Dccem DEC 1 1 1995 E»aF“ ITEM NO. /. Dcpartmeot Approval: Nanc Ronald A. Moorse Title Citv Administrator Administrator Reviewed:Agenda Section: City Administrator's Rqx>it Item Description: Adoption of 1996 Budget and Tax Lew - Resolutions The proposed 1996 budget reflects an effort to hold the line on funding for current services while positioning the city to address a number of long term issues with substantial fiscal impacts. Fxpendimres. Tax Lew and Tax Capacity Rate The proposed 1996 General Fund Expenditures, those with the greatest impact on the tax levy, do not require a tax lev>' increase. Proposed General Fund Expenditures are $3,347,755. This is an increase of $102,740 or 3.17% over the 1995 expendimre amount. The tax levy required to fund the total 1996 budget is $2,080,840. This is an increase of $64,670 or 3.21% over the 1995 levy. The major reason for the tax levy increase is the establishment of a $40,000 levy for infrastn -ture replacement (road, bridges, and storm water drainage). Because of a significant increase in the city’s tax base, the proposed tax levy will result in a reduction in the city's tax capacity rate from 15.604% to 14.843%. This will enable Orono s tax rate to remain one of the lowest in Hennepin County . Impnri r>f Budget on Residential Properties The proposed budget and tax levy result in a reduction in the city’s share of the proi^rty tax bill. For a home valued at $200,000, the city share of the property tax bill is reduced from $511.81 in 1995 tc $486.84 in 1996. This is a reduction of $24.97 or 4.9%. I nng Term Fisc.il Issues and Prog ram Highlights Although the 1996 budget is fiscally conservative it does address a number of long term fiscal issues and program needs. These are as follows: Long Term Fiscal Issues 1.Funding for infrastructure (replacement of roads and bridges, and storm water drainage projects). 2, Funding for storm water management plan liMj