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Case //2: 1996 Budget Discussion and Resolution Approving Proposed Maximum 1996 Payable Tax Levy and Scheduling Budget Public Hearing Dates Finance Officer Hart handed out the personnel information for 1989 to 1995 and also the request for 1996. She reported that a meeting regarding balancing the 1996 Proposed General Fund Budget was held with department heads and supervisors. She explained the proposed 1996 payable tax levy. The direct charges, which total $67,858, are costs that had been paid for through the General Fund tax levy or other sources in the past, but are now being billed directly to the properties. Without the direct billings, these costs would most likely have been included in the tax levy and collected via property taxes. The General Fund levy of $1,320,050, is the minimum amount necessary to balance the 1996 General Fund Budget after incorporating the attached recommendations. The Debt Service levy of $9,858 is $15,073 less than the 1995 levy which, in turn, provides the General Fund with additional levying power for 1996. The Rum River Drainage District Levy of $28,000 is the result of actions taken to move forward with the Section 22 Drainage Project. This is a one year levy for only those properties located within the Rum River Drainage District and will not impact properties located in the Mississippi Drainage District. Ms. Hart stated that the minimum levy necessary to operate the budget as recommended would be $1,357,830 and would result in an estimated tax capacity rate of 19.127, or a decrease of 2.17% from the 1995 rate. She noted that the resolution attached to the case reflects a maximum levy of $1,425,688. This levy includes the minimum dollars necessary to fund the General Fund budget as proposed and provides "working" room for continuing budget discussions prior to actual adoption in December. A levy at this level is estimated to result in a tax capacity rate of 20.083, or a 2.7% increase over the 1995 rate of 19.551. She pointed out that while the maximum proposed levy can always be reduced, it cannot be increased without "higher" level approval through an appeals process. Therefore, it is staff's position that the maximum proposed levy be adopted at a level above what is considered to be the minimum. She reminded the Committee that budget public hearing dates also have to be set and they must not conflict with the dates selected by the county, school districts, or special taxing districts. She suggested the date of Wednesday, November 29, 1995, at 7:00 p.m., with a reconvene date of Wednesday, December 6, 1995, at 7:00 p.m. She called attention to the add-ins since the Committee last saw the list which included a set of five voting booths and another officer to be trained in D.A.R.E. City Administrator Schroeder called attention to the elimination of the Environmental Services position and the creation of a park and recreation full-time position. If City Council adopts this, that person would have to notified his position is being terminated; however, he could apply for the full-time position. He commented that this is a pretty significant impact on an individual. Councilmember Peterson stated we will be able to have more discussion on this issue prior to December. Ms. Hart stated she would like to have one more budget meeting as it pertains to these items and that discussion will probably take place at the October Finance Committee meeting. Councilmember Peterson commented that he could "live with" the proposed levy rate of 20.083, a 2.7% increase. Councilmember Beyer agreed. Finance Committee/September 12, 1995 Page 2 of 3