Proposed 1997 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: December 4, 1996 SUBJECT: Proposed 1997 General Fund Budget Attached is the 1997 Proposed General Fund Budget in Brief. This information was prepared on the basis that proposed tax levy would be reduced to an amount that would equate to a zero tax rate increase. [The full proposed budget document incorporates the maximum proposed levy as adopted on September 9, 1996. In preparing the 1997 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. Maintain the tax capacity rate at a level consistant with the 1996 rate yet adequate enough to provide for ongoing services and programs while continuing taxing levels comparable to or below that of surrounding communities; and d. Position the City fmancially 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 staffs opinion that the above objectives were considered and met in the preparation of this budget. The 1997 Proposed General Fund Budget, as presented, totals $3,769,865 with a proposed tax levy of $1,627,685. When combined with the debt service levy, the general property taxes proposed for collection in 1997 total $1,638,087 [does not include Fiscal Disparities or HACA] and equate to a tax capacity rate of approximately 20.367 which is the same as payable 1996 and represents a zero tax rate increase. The total dollar increase in taxes proposed is $240,379, all of which is generated by the increase in the tax base. The levy covers additional budgetary needs, including the addition of one full-time patrol officer, first year transfer to the PIR Fund for a street paving program and capitalized interest on non- certifiable assessments. Various expenditure delays and reductions in certain areas were recommended by staff, to meet a balanced budget at this level of taxes. The parcel specific notices that were prepared and mailed by the County were prepared utilizing the maximum levy as certified on September 9, 1996 and reflect a tax capacity rate of 20.917, a 2.7% increase over the proposed rate of20.367. -\-