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111390.4 <br />TO: M3Vor and City Council <br />FROM: Mark E. Bernhardson, City Administrator <br />DATE: November 13, 1990 <br />SUBJECT: 1991 Budget Public Hearing <br />*1 <br />Attachment: A. 1991 Budget Documented/Updated (Previously <br />Distributed Dated 8/9/90 Updated 11/19/90) <br />B. Comparison of 1990/91 Tax Levy Proposal <br />C. Truth in Taxation Notices Received from <br />County 11/8/90 <br />D. Proposed Adoption Resolution for Tax Levy <br />ISSUE - <br />1. Reminder to Council of the upcoming public hearing scheduled <br />for December 3, 1990. <br />2. Present additional information to r-juncil requested at the <br />November 8, 1990 Workshop. <br />INTRODUCTION - At the Council's August 27, 1990 Council meeting <br />Council established December 3, 1990 as the primary date for the <br />public hearing with a continuation date slated for December 18, <br />1990 should that be needed. <br />At the Council's public hearing last year only one person <br />appeared to listen to the discussion on the budget. <br />DISCUSSION - As outlined at the Council's Noverher 8, 1990 <br />Workshop the general budget overall is proposed to go up ^ust <br />under 4% which includes a 3% salary adjustment for 1991 and the <br />flexibility for some addition if deemed appropriate. That budget <br />included maintenance of the current programs together with the <br />addition of a full-time permanent septic inspection position, <br />which is discussed under a separate agenda item. <br />While the General Fund levy is going up just under 4% which <br />represents a 5/lOths of 1% increase in the individual tax bill <br />and probably substantially less than the increase in value of <br />property or the inflation rate. The City total rate is <br />estimated to go up 13.1% if the proposal preliminarily adopted on <br />August 27 is final proposal adopted by the Council. The bulk of <br />this is for $140,000 levy to allow the City to be in a position <br />to pay off the 1989 sewer and water bonds early with the net <br />effect of that being to give the City 'ncome stream from the <br />special assessments during the term of tne assessment and still <br />allow any development to fully pay its entire cost in the <br />longterm. By doing this it allows the City additional levy <br />authority in the short term together with placing the City in a <br />position to be able to lower its outstanding bond debt in the <br />near term.