Agenda - Council - 11/27/2001 - Laserfiche WebLink

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MEMORANDUM TO: Mayor and City Council FROM: James Norman, Administrator' Diana Lund, Finance Officer DATE: November 27, 2001 SUBJECT: Proposed 2002 General Fund Budget Attached is the 2002 Proposed General Fund Budget in Brief, This information wa~ prepared on the basis that the certified maximum proposed tax levy would be utilized as adopted on September 11, 2001. In preparing the 2002 Proposed General Fund Budget, the following objectives were established: Recognize the limitations placed on City activities resulting from limited revenue growth; and b. Maintain or increase the existing level of City services and programs; and Co Position the City financially such that stable revenues are identified for current and future capital programming and equipment replacement; and d. Avoid deferring costs to future years. It is staffs opinion that the above objectives 'were considered and met in the preparation of this budget. The 2002 Proposed General Fund Budget, as presented, totals $6,022,057 with a proposed tax levy of $4,346,165. When combined with the special levies for the fire station lease revenue bond, increase in pera rate and capital equipment certificates, the general property taxes proposed for .collection in 2002 total $4,579,992 [this number does not include the Mississippi Sub Drainage District Levy which was a special levy levied against 17 parcels in the City] The tax capacity rate equates to approximately 41.411. The higher rate is attributed tot he City needing to levy back the loss of HACA and the reduction in Local Government Aid ($62.0,957). The total dollar increase in taxes proposed is $897,366, which is generated by the increase in the tax base and special levies. Of the total increase, $620,957 is attributed to the elimination of HACA and a cut in the amount of Local Government Aid the City receives. The levy covers additional budgetary needs, including the addition of one full-t/me Associate Planner, one full-time Engineering Tech IV and increasing the positions of Mechanic and Community Service Officer from part-time to-full-time status. It also includes enhancements to part-time/temporary positions and contracted services. The parcel-specific notices that are to be mailed by the County will utilize the maximum !evy as certified on September 11, 2001 and reflect a tax capacity rate of approximately 41.411.