09-09-2013 Council Packet - Laserfiche WebLink

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Some of the significant increases are: 2014 is an election year, the budget for elections is increasing by $21,770; the cost of the Assessing contract with Hennepin County is increasing $15,000 (10.71%); contingencies has been increased by $84,800. In the Police Department, a rate increase from PERA results in an $18,111 increase in expenditures; a change in the liability rating system by the League of Minnesota Cities Insurance Trust resulted in an increase of $12,790; and the costs associated with the police records system has increased by $19,000. These increases were largely offset by reductions in wages related to a retirement and transition costs related to the Mound service contract (- $63,000). One expenditure item that is not included in the preliminary budget are the costs associated with the televising the City’s meetings. These costs would be offset by the franchise fees that will be paid to the City. Other significant budgetary savings include the following. The elimination of the Deputy Clerk Position in 2013 saves an estimated $74,800 in the 2014 budget. The budget for consulting Engineering has been reduced $48,000. Personnel costs for the Golf Course are being reduced by $18,300 as the result of a change in staffing. The final significant reduction in expenditures is the result of the Legislature reestablishing the sales tax exemption for cities (-$35,000). Additional detail and summary expenditure information is included with this memo. Debt Service Levies The total levy for debt service for 2043 is $755,500; this is the same as in 2013. A schedule for the debt service levy is attached. As indicated on the schedule, the required levy begins to decrease in 2015. Adoption of the Preliminary Budget and Tax Levy The City is required to certify its preliminary tax levy the County by September 16. After adoption of the preliminary levy, the levy cannot be increased. The levy can still be decreased prior to adoption of the final levy at the December 9th council meeting. Public comment on the budget and tax levy will be allowed at the December meeting prior to the adoption of the budget. COUNCIL ACTION REQUESTED: Motion to adopt either the Resolution Adopting the Preliminary 2013 Tax Levy Collectable in 2014 and a Resolution to Adopt the Preliminary 201 General Fund Budget as presented with a public hearing on the budget set for the regular council meeting of December 9, 2013 at 6:30pm. Item #04 - CC Agenda - 09/09/2013 Presentation - Preliminary 2014 Budget and Tax Levy [Page 3 of 68]