Minutes - Council - 12/13/1994 - Laserfiche WebLink

Home

Motion by Councilmember Hardin and seconded by Councilmember Zimmerman to adopt Resolution #94-12-263 adopting the 1995 Economic Development Authority Operating Budget. Motion carded. Voting Yes: Mayor Gilbertson, Councilmembers Hardin, Zimmerman, Beyer and Peterson. Voting No: None. Case 06: Adopt 1995 Tax Levy and General Fund Operating Budget Finance Officer Hart stated that the information distributed at the 1995 Truth-in-Taxation public hearing, held on Wednesday, November 30, 1994, included information regarding the tax capacity rate and tax dollar levies, at the maximum, as had been certified in September 1994, and at the level proposed in the balanced Proposed 1995 General Fund Budget. An additional $33,453 could be programmed into the General Fund Budget if the Council's desire is to adopt the maximum levy. Ms. Hart stated that the 1995 Proposed General Fund Budget, as it has been presented and reviewed in the past several months, is based on the collection of tax dollars at a level that is $33,453 less than the maximum certified, and results in a 19.4183 percent tax capacity rate. This equates to a 3.93 percent increase in the taxes of a parcel with no value increase. This budget was balanced through Staff recommended adjustments and resulted in a contingency in the amount of $31,399, which is $18,601 lower than the $50,000 that has been the desired level the past few years. Ms. Hart explained that if the Council wishes to adopt the tax levy a level higher than what is included in the balanced budget, there would be an increase in the taxes of a $100,000 homesteaded residential property (with no value increase) of $2.11 for every $10,000 increase in the levy amount. Ms. Hart recommended adoption of the 1995 property tax levy and Oeneral Fund Budget based on one of the following options: 1) Adopt the 1995 property tax levy at $1,181,590 ($1,156,659 for general operation and $24,931 for debt service) which results in a tax capacity rate of 19.4183 and an increase in the City's share of taxes of approximately 3.93 percent. This option is what was presented in the Proposed General Fund Budget and results in a contingency of $31,399; or 2) Adopt the 1995 property tax levy at $1,195,191 ($1,170,260 for general operations and $24,931 for debt service) which results in a tax capacity rate of 19.6418 and an increase in the City's share of taxes of approximately 5.13 percent. This option increases the contingency amount to $45,000, which is comparable to past levels; or 3) Adopt the 1995 property tax levy at $1,215,043 ($1,190,112 for general operations and $24,931 for debt service) which results in a tax capacity rate of 19.968 and an increase in the City's share of taxes of approximately 6.87 percent. This option utilizes the maximum levy as certified in September and results in a contingency of $64,852. Mayor Gilbertson stated that we are holding things at a common sense level. Councilmember Hardin stated that Staff brought a balanced budget based on Scenario #1 - 3.93 percent. This includes the police officer, snow plow track and computer. Nothing vital was cut from the budget. Motion by Councilmember Hardin and seconded by Mayor Gilbertson to adopt Resolution g94-12-264 based on Scenario #1 - 3.93 percent increase. Further discussion: Councilmember Hardin stated we have covered all bases. He didn't know why the budget would have to be any higher than that. Motion failed. Voting Yes: Mayor Gilbertson and Councilmember Hardin. Voting No: Councilmembers Beyer, Peterson and Zimmerman. City Council/December 13, 1994 Page 9 of 19