12-14-1998 Council Packet - Laserfiche WebLink

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f -.t • -'M » "T * ’V. *. .wl REQUEST FOR COUNCIL ACTION j)^0 14 1998 cr; Y cr c nc::o DATE: December 10,1998 ITEM NO:I Department Approval: Name Ron Moorse Title City Administrator Administrator Reviewed:Agenda Section: City Administrator ’s Report Item Description: Adoption of the 1 999 Annual Budget and Tax Levy - Resolutions A preliminary budget and tax levy was approved by the City Council at its September 14 meeting and reflected ' * the 1999 payable property tax statements. At the December 7 Truth in Taxation Hearing, the Council reduced the preliminary levy' for adoption at the December 14 Council meeting. The preliminary tax levy approved by the Council was $2,339,140. This was an increase of $1 14,010 or 5.1% over the 1998 levy. At the Truth in Taxation Hearing, the Council directed staff to reduce the proposed tax levy to $2,291,884 for an increase of $66,754 or 3% over the 1998 levy. The 3% figure was determined based on a combination of the projected Consumer Price Index (CPI) increase for 1999 of approximately 2% and a City growth fictor of i%. A chart showing the tax levy calculation based on the cost of living and annual growth factors is attached. The 3% tax levy increase is $47,256 less than the preliminary 1999 tax levy. The City Council directed staff to make the reduction in the le\y' while retaining the main expenditure items causing the expenditure increase in the General Fund budget. After review of the General Fund budget expenditure detail, staff has determined the way to accomplish what the Council has directed is to use a portion of the projected 1998 General Fund surplus to fund two one-time cost items in the General Fund. These are the additional expenditures related to updating the City ’s Comprehensive Community Management Plan and updating the City's Zorung Code ($35,000), and the expenditures related to the Inspections Tracking Module ($12,000). Staff is generally very reluctant to use General Fund reserv es to fund operating costs. However, in this situation, both expenditure items are one-time costs. Also, because the General Fund surplus is due mainly to planning and zoning revenues exceeding projected amounts, it is reasonable to match those surplus fees with expenditures related to the planning and zoning area. A summary of the 1999 budget and tax levy reflecting the Council's direction at the Truth in Taxation Hearing is attached. COUNCIL ACTION REQUESTED: Motion to adopt the following resolutions: 1 . Resolution Adopting the Final 1998 Tax Levy Collectible in 1999 2. Resolution to Adopt the 1999 General Fund Budget 3. Resolution to Adopt the 1999 Special Revenue Funds Budgets