Agenda - Council Work Session - 11/12/2014

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CC Work Session Meeting Date: 11/12/2014 Information Title: Discussion and Review of 2015 Proposed General Fund Budget and 5 -Year Budget: 2015 -2019 2.1. 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 City Council adopted the proposed 2015 General Fund Budget and levy at its regular meeting of September 9, 2014. The City received preliminary tax capacity numbers from the county and the proposed 2015 tax capacity rate, based on preliminary levies is 42.193 %. Staff had estimated a proposed tax capacity rate of 42.67 %. The budget, as attached, reflects an increase of $109,633 over the preliminary budget ($10,423,759 vs $10,314,126). The budget increase does not increase the tax levy ($9,410,498) as staff is just moving the road debt from being a debt service levy to the general tax levy, due to the timing of the debt issuance not occurring until 2015. The General Fund budget needs to reflect this levy change and is shown under revenues as an increase to ad- valorem taxes and expensed as a transfer out to the road reconstruction fund. A five -year budget 2015 -2019 has been prepared based on past history, proposed 2015 budget, road reconstruction funding, inflationary factors and capital equipment needs. The off - setting tax capacity rates were calculated based on growth estimates and additional proposed debt service (Road funding, Capital Equipment Certificates and Fire Station 42) Timeframe: 45 -60 minutes Funding Source: Responsible Party(ies): Finance Director Outcome: Review of budget documents and determination of final 2015 General Fund Budget and 2015 Payable levy. Attachments 2015 Proposed General Fund Budget 5 Year Budget Assumptions 5 Year Tax Capacity Rates 2015 -2019 Budgets Form Review Inbox Reviewed By Date Kurt Ulrich Kurt Ulrich 11/06/2014 03:44 PM Form Started By: Diana Lund Started On: 10/29/2014 12:22 PM