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CASE # / 1995 BUDGET DISCUSSION AND RESOLUTION APPROVING PROPOSED MAXIMUM 1~95 PAYABLE TAX LEVY AND SCHEDULING BUDGET PUBLIC HEARING DATES By: Jessie L. Hart, Finance Officer Background: 1995 Budget DisCussion On August 19, 1994, a memo regarding balancing the 1995 Proposed General Fund Budget was distributed to Del~artment Heads and supervisors and copied to the City Council. Included in this information was ~ecommended adjustments to balance the budget utilizing a tax estimate which is 4.5% over the rages levied for 1994. The last page of information was a list of items that we believe were the primary candidates for reconsideration if higher taxing levels are sought. This memo, whiqh is attached as Exhibit A, was discussed at a staff meeting on Monday, August 22, 1994, and as ~ result of that meeting, several additional adjustments are being recommended in addition to thoseid, etailed in Rounds 1 and 2 on Exhibit A. These additional adjustments, which are detailed on E~hibit B, maintain a balanced budget and do not change the original tax estimate used. Proposed 1995 Payable Tax Levy During the last Council/Staff budget worksession, it was requested that I provide additional information as to:r the impact of increasing the tax levy to a point higher than the proposed 4.5% dollar increase or. er the 1994 levy. This information is provided on the first schedule in Exhibit A. A 4.5% increase ~over the 1994 levy amount results in an additional $43,0t2, an estimated tax capacity rate of lr9.3898, and an increase of 3.78% in the City's share of taxes proposed for 1995 over those levied for 1994. The following table indicates the additional dollars that would be collected at various levels, up to a 10% dollar increase over the 1994 levy. Also indicated is the percent increase a property owner would see to only the City's portion of the total tax bill. Proposed % Inc in City % Inc Over Additional Dollars Estimated Tax Taxes 1994 Levy: Available * Capacity Rate Over 1994 Payable 5% $ 4,779 19.4683 4.20% 6% $ 14,337 19.6251 5.04% 8% $ 33,453 19.9388 6.72% 10% $ 52,570 ,,, 20.2525 8.39% * These wofild be the dollars available over and above the $43,012, which is the result of the 4.5% ~ncrease over the 1994 levy amount. Attached as Exhibits C are tables which indicate the changes in the Citfs share of taxes on various values, for both c~}mmercial and homestead residential properties, at each of the levels indicated in the table above.