Agenda - Council - 11/26/2013 - Laserfiche WebLink

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Agenda Page 3 of 6 Finance Committee Meeting Date: 11/12/2013 Review of 2014 General Fund Budget & 5 Year: 2014-2018 Budgets Information 5.1. Title: Discussion and Review of 2014 Proposed General Fund Budget and 5-Year Budget: 2014-2018 Purpose/Background: Purpose: Review of General Fund budgets and their reflection on current tax capacity rate, future tax capacity rates, and implication to other city funds. The Council adopted the proposed 2014 General Fund Budget at its regular meeting of September 10, 2013. The Finance Committee had asked to review the individual line items of the 2014 budget prior to a full council budget worksession in November after tax rates are received from Anoka County. Staff presented the budget at the Finance Committee meeting of October 8, but not all Finance Committee members were present, so the item was tabled to a future meeting. A five-year budget, 2014-2018 has also been requested and prepared based on past history, proposed 2014 budget, strategic planning items, inflationary factors and capital equipment requests. The off- setting tax capacity rates were calculated based on conservative growth estimates from the County, Tax Increment Financing (TIF) decertifications (TIF #4 & #7) and additional proposed debt service (Fire Station # 2 and PW Campus). Notification: The City received tax rates from the County on November 4. The city's proposed tax capacity rate came back at 45.095%, whereas staff had estimated a tax rate of 43.37%. The difference in rates was derived from a decrease in taxable value from original county estimates, and a reduction in fiscal disparities (which rate is not known when preliminary levy is set). The 2013 final tax capacity rate was 44.29%. Included for review: Proposed 2014 General Fund Budget, 5-Year Budget Assumptions, 5-Year Tax Capacity Rate Calculations and 2014-2018 Line Item General Fund Budgets. Funding Source: Not Applicable. Recommendation: Review of budget documents hi -lighting those changes, if any, to be presented at the future budget worksession with City Council. Action: Review of individual line items contained within 2014 Proposed General Fund Budget with possible recommendation of changes to full city council at upcoming budget worksession and review of assumptions within the 5-Year 2014-2018 budget document. http://156.142.212.178:8080/print all.cfm?seq=824&reloaded=true&id=0 11/19/2013