Agenda - Council Work Session - 04/10/2012

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CC Work Session Meeting Date: 04/10/2012 By: Diana Lund, Finance 2. 1. Title: Continued Discussion of 2013 Budget Background: At the March 20 work session, the Council consensus was to explore a proposal offered by Council member Elvig in regard to the 2013 budget. The proposal was that the total levy would not exceed $7,150,000. As part of the proposal, the Road Reconstruction initiative funding would derive from the implementation of a franchise fee in a monthly amount of $7 which would generate approximately $1.5M annually Staff has prepared the net effect on the city's tax rate based on the proposal and the overall net effect to the cash flow for 2013. The net effect on the city's tax rate would be an estimated 38.70% and would create a positive cash flow of $144,998 calculated as follows: Net 2012 Adopted Levy: Total 2013 Budget Reductions from cash flows $7,005,002 Council member Elvig's Proposal -Net Levy Net Additional Funds $8,413,798 (1,408,7961 $7,150,000 $ 144,998 Notification: The cash flow analysis presented at the March 20 work session is attached as well as the tax capacity implications for years 2013-2016 with a comparison of local Anoka County cities tax rates for 2012. Lastly, a summary of possible franchise fee that would be generated based on a monthly fee of $7.00 is attached. Funding Source: N/A Council Action: Continued discussion of 2013 budget with proposed levy, tax rates and possible franchise fee for road reconstruction. 2013 Budget Documents Attachments Form Review Inbox Reviewed By Date Kurt Ulrich Kurt Ulrich 04/05/2012 02:24 PM Form Started By: Diana Lund Started On: 04/05/2012 09:07 AM Final Approval Date: 04/05/2012