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FC CASE REVIEW AND ADOPT 1997 TAX LEVY AND GENERAL FUND BUDGET By: Jessie Lo Hart, Finance Officer Background: The 1997 Truth-in-Taxation Public Hearing was held on Wednesday, December 4, 1996, at 7:00 p.m. in the Council chambers. The information distributed at the hearing included information regarding the tax capacity rate and tax dollar levies assuming a no tax rate increase, which is $44,014 less than the maximum that was certified in September, 1996. The 1997 Proposed General Fund Budget, as it has been presented and reviewed in the past several months, is based on the collection of tax dollars at a reduced levy and results in a 20.367% tax capacity rate. This equates to a ZERO increase in the taxes of a parcel with no value increase. This budget was balanced through staff recommended adjustments and resulted in a total contingency in the amount of $74,077. Included is funding for exempt salary adjustments [$9,524], training [$10,000], first year funding for the street paving program [$20,000], capitalized interest on non-certifiable assessments [$7,226] and an unallocated line item [$27,327]. The budget also includes an increase in the Police Department staffing complement by one patrol officer and provides for a second sergeant position as a promotional opportunity. Other than those improvements, staffing remains unchanged for 1997. In total, Public Safety [police, fire, inspections, civil defense] is now 34.38% of the budget. General Government [administration, finance, elections, planning and legal] is 28.80% of the budget. Public Works and Parks represent 24.06% and miscellaneous and transfers make-up the balance. This budget assumes that the PIR Fund will be providing for the street maintenance sealcoating program in total beginning in 1997. If that change in funding does not ultimately occur during 1997 the necessary changes do not have a General Fund budgetary impact. State Statutes require that the 1997 Levy and General Fund Budgets must be adopted at a meeting separate from the public hearing and before December 30, 1996. Therefore, the 1997 Proposed Levy and General Fund Budget are presented for adoption at tonights Council meeting. Staff Recommendation: Staff recommends adoption of the 1997 property tax levy and General Fund Budget as presented utilizing the reduced levy which results in a tax capacity rate of 20.367, which is the same as payable 1996.