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

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CASE # ~2 ADOPT 19~95 TAX LEVY AND GENERAL FUND OPERATING BUDGET By: Jessie L. Hart, Finance Officer Background: The 1995 Truth-it~-Taxation Public Hearing was held on Wednesday, November 30, 1994, at 7:00 p.m. in the Coun{il chambers. The information distributed at the hearing included information regarding the ta~ 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 $3!,453 could be programmed into the General Fund Budget if the Council's desire is to adopt the magimum levy. The 1995 Proposed General Fund Budget, as it has been presented and reviewed in the past several months, i~ based on the collection of tax dollars at a level that is $33,453 less than the maximum certifiett and results in a 19.4183% tax capacity rate. This equates to a 3.93% 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 thah the $50,000 that has been the desired level the past f.e;~years. If the Council wi~hes to adopt the tax levy a level higher than/ghat is included in the balanced budget, there wou~d be an increase in the taxes of a $100,000/residential property [with no value increase] of $2.1 l~'or every $10,000 increase in the levy amount. State Statutes req~e that the 1995 Levy and General Fund Budgets must be adopted at a meeting separate from the ~ublic hearing and before December 28, 1994. Therefore, the 1995 Proposed Levy and General ~und Budget are presented for adoption at tonights Council meeting. The line items in attached resolutions, that itemize the tax levels, have intentionally been left blank and will be d~mpleted based on Council s actions at this meeting. Staff Recommegdation: Staff recommends~doption of the 1995 property tax levy and General Fund Budget based on one of the following o~ions: 1 ) Adopt the ~ 995 property tax levy at $1,181,590 [$1,156,659 for general operations and $24,931 fo~:debt service] which results in a tax capacity rate of 19.4183 and an increase in the City's sh~are of taxes of approximately 3.93%. This option is what was presented in the Proposed Cie. neral Fund Budget and results in a contingency of $31,399; - or - ~ 2) Adopt the i995 property tax levy at $1,195,191 [$1,170,260 for general operations and $24,931,fo~debt service] which results in a tax capacity rate of 19.6418 and an increase in the City s s~are of taxes of approximately 5.13%. This option increases the contingency amount to ~45,000, which is comparable to past levels; - or- Adopt the ~995 property tax levy at $1,215,043 [$1,190,112 for general operations and $24,931, fo~debt service] which results in a tax capacity rate of 19.968 and an increase in the City s sliare of taxes of approximately 6.87%. This option utilizes the maximum levy as certified fn September and results in a contingency of $64,852.