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CASE REVIEW PROPOSED 1995 GENERAL FUND BUDGET By: Jessie Hart, Finance Officer Background: The City Council~adopted and certified to Anoka County the proposed maximum 1994, payable · 1995, tax levy at ~heir regular meeting on September 12, 1994. This levy, which included a debt service levy for $24,931 and a general operations levy for $1,190,112, is the maximum amount the City can levylas its final levy for payable 1995, resulting in an average City tax increase of 6.87%. The proL~osed property tax statements that were recently sent to residents reflected this maximum levy. The Proposed 19 balanced budget fl several situations Included in the 1~ amount of $39,37 ;~5 General Fund Budget, as it was presented on September 12, 1994, was a ~at did not utilize the full amount of the certified proposed levy. Since that time, ~ave developed which require attention prior to the public hearing. roposed 1995 General Fund Budget was revenue for a lease payment in the 6 for the rental of the metal building located at 14100 Jaspar Street N.W. The negotiations for this lease have stopped and the rental of the building will not take place. As an offset to the anticlpated revenue from the lease, was funding for a salt storage shed in the amount of $20,000. This budgeted expenditure was contingent upon the revenue generated from the lease. Also included ia the Proposed 1995 General Fund Budget was the purchase of four new (replacement) sqt~ads for the Police Department. The cost was estimated at $13,900 per squad. Since the preparation of this document, the bids for the Ford Crown Victorias were received and the price has escalated to $16,717. Based on the abo~/e situations, and utilizing the maximum dollars available from levied property taxes, the following table indicates the effects on the Proposed 1995 General Fund Budget: MaximumiProjected Revenues (includes maximum levy) $3,259,505 Less: Anticipated Lease Revenues (39,376) Adjusted Projected Revenues $3,220,129 MaximumiProposed Expenditures Less: Funding for Salt Storage Shed Plus:/[dditional Funding for Police Squads (includes increase in price and 1st year funding) $3,226,052 (20,0OO) 15,775 Adjusted Proposed Expenditures $3,221,827 Projected Deficit $ (1,698) At the September il2th meeting we had discussed a desire to eventually pass a levy at a 4.5% level (results in a Cityitax increase of approximately 3.78%). To achieve this, the $I,698 deficit indicated above increases to $35,141.