09-04-2003 Council Work Session - Laserfiche WebLink

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TO: Mayor Peterson and Council Members FROM: Ron Moorse, City Administrator W^ DATE: September 3,2003 / SUBJECT: September 4,2003 Budget Worksession The Council will meet at 6:00 p.m. on September 4,2003, to determine the preliminary tax levy and General Fund Budget for 2004, and to review a seven year budget projection. Preliminary General Fund budget and Preliminarv Tax Levy The City is required to provide the preliminary tax levy to the County by September 1 5. The final tax levy and budget will be adopted after the Truth-In-Taxation hearing, to be held in late November or early December of this year. The tax levy can be reduced after September 15, but cannot be increased. Attached are three spreadsheets reflecting revisions to the General Fimd budget and the tax levy. The General Fund Budget Expenditure Summary reflects a revised proposal related to compensation adjustments, and additional expenditures related to the hiring of an additional Police Officer in the fall of 2004. The total General Fund budget is still being reduced by $11,390 from the 2003 budget. The General Fund Revenue Detail reflects an increase in Police Serx'ice Revenues to offset increased Police Service expenditures related to the proposed compensation adjustments. The total Tax Levy for 2004 is proposed to increase by $99,530, or 3.27%. Ihe Tax Levies spreadsheet reflects an increase in the levy for equipment certificates to replace Public Works equipment. The levy for this purpose was increased from $85,000 to $125,000. The $85,00*^ levy would have enabled the replacement of an 11-year old tractor-mower, and a 20-year old V* ton pick' up. 1 he additional $40,000 levy is to enable the replacement of a 12-year old brush chipper, at a cost of $40,000. The brush chipper replacement had initially been deleted from the budget request when the total tax levy was proposed to increase by about 4%. Since that time, the tax levy for the Navarre Fire Station bonds was reduced by over $50,000. This enables the equipment certificate levy to be increased by $40,000, while holding the total levy increase to 3.27%. Seven Year Budget Projection Attached is a spreadsheet showing a seven year budget projection, and a memo explaining the key factors and assumptions in the projection. The budget projection was prepared to show the Council the effect on the tax levy and tax capacity rate of addressing several substantial needs over the next years, and to provide the Council with a longer term perspective within which to make its decision about the tax levy for 2004.