1996 Proposed General Fund Budget

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) "'. MEMORANDUM TO: Mayor and City Council FROM: Ryan R. Schroeder, City Administrator Jessie L. Hart, Finance Officer DATE: November 29, 1995 SUBJECT: Proposed 1996 General Fund Budget Attached is the 1996 Proposed General Fund Budget in Brief. This information was prepared on the basis that the maximum proposed tax levy would be utilized as adopted on September 12, 1995. In preparing the 1996 Proposed General Fund Budget, the following objectives were established: a. Recognize the limitations placed on City activities resulting from limited revenue growth; and b. Maintain or increase the existing level of City services and programs; and c. Increase the tax capacity rate to a level adequate to provide for ongoing services and programs while continuing taxing levels comparable to or below that of surrounding communities; and d. Position the City financially such that stable revenues are identified for current and future capital programming and equipment replacement; and e. Avoid deferring costs to future years. It is staff's opinion that the above objectives were considered and met in the preparation of this budget. The 1996 Proposed General Fund Budget, as presented, totals $3,513,068 with a proposed tax levy of $1,387,908. When combined with the debt service levy and the Rum River Drainage District levy, the taxes proposed for collection in 1996 total $1,425,688 and equate to a tax capacity rate of approximately 20.222 compared to 19.551 for payable 1995 taxes. The total dollar increase in taxes proposed is $244,098 of which $152,723 is generated by the increase in the tax base. The levy request includes an additional $63,327 generated by budgetary needs, including the addition of one full-time maintenance worker, a part-time secretary and the addition of an interfund loan payment on a new Police facility in 1996. Also included in the maximum levy is a special levy for the Rum River Drainage District. Various expenditure delays and reductions in certain areas were recommended by staff, to meet a balanced budget at this level of taxes. Changes to the original proposal to balance the budget at this level are consistent with those presented on September 12, 1995. The parcel specific notices that were prepared and mailed by the County were prepared utilizing the maximum levy as certified on September 15, 1995. \