Agenda - Council - 09/09/2014 - Laserfiche WebLink

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lour 1111.1siion: To work together to reiposibty grow our community, and to provide quality, coat -effective, and efficient government ierrlcas. CC Regular Session 7. 4. Meeting Date: 09/09/2014 By: Diana Lund, Finance Information Title: Adopt Resolutions Approving Proposed 2015 Payable Tax Levies and Schedule Public Meeting for December 9, 2014 Purpose/Background: Purpose: Each taxing authority must certify its proposed preliminary property tax levies for payable 2015 to the County Auditor by September 15, 2014 Background: The levy as presented reflects the consensus of the City Council at the final preliminary budget/levy work session on September 2, 2014. Proposed 2015 Payable Tax Levy: Proposed Tax Levies: General Fund Levy: $ 7,811,937 EDA Levy (Included in General Levy) 116,444 (EDA presented 8-14-14) Debt Service Levy — CIP Bond -(Fire Station #1) (Being Requested) 147,630 Debt Service Levy — CIP Bond(Municipal Center) (Being Requested) 1,048,213 Debt Service Levy - 2013 Equipment Certificate 74,820 Debt Service Levy - 2014 Equipment Certificates (Estimated) 101,821 (Issue Debt Winter 2014) Debt Service Levy - 2014 Road Reconstruction Debt (Estimated) 109,633(Issue Debt Winter 2014) TOTAL PROPOSED LEVY — 2015 $9,410,498 The attached resolution, as it is presented, reflects a levy of $9,410,498. The proposed levy for 2015 reflects a $846,157 (9.88% increase) over the adopted levy in 2014 of $8,564,341. The levy increase of $846,157 is attributed to four main areas: 1. Road Reconstruction Funding - $309,633 of levy increase: Per the City's Strategic Plan - A Connected Community, the City has been exploring financing mechanisms for funding road reconstruction projects. After much debate and interaction with the Charter Commission, the proposed franchise fee of $16 per month per residential and commercial property to cover the estimated annual $2.2M expense of road reconstruction projects was rejected by the Council, with the recommendation that funding come from the property tax, and special assessments on individual benefiting properties. The 2015 levy incorporates this recommendation with the $2.2M being funded with the issuance of $1.33M (offset with one-time funding of $410,000 from 2013 non -spent road funds -will be $1.7M after 2015) of General Obligation Improvement Bonds (estimated winter 2014 issuance), with an annual debt levy of approximately $110,000, a 20% assessment (minimum assessment amount -yet to be finalized), and $500,000 from the General Property Tax Levy of which previously $275,000 had been funded from Tax Increment Financing District #4. 2. Personnel Funding - $226,410 of levy increase. The increase is attributed to a cost of living (COLA) adjustment for approximately 75 employees, step increases, 5.5% health insurance increases, State Mandated