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Agenda ! 1 . , ' Tuesday; July 13,2004 6:30 p.m. Raspberry Room 6:30 pm City Council Work Session Called to Ord(n " 6:35 pm Pre;'budget mee~ing: Genellie, Kerrigan,D.>Johnson, Yager . CIP/ERP final review; Yager 7:30 pm, ,8:00 pm Review proposals from search. consultants; Genellie " 8:30 pm Closed door meeting to discuss strategy forlabor '. negotiations; Genellie " , 9:15 pm Other 9:30 pm Adjourn . 4' I . . July 9, 2004 : 7005 BUDGET Overview Below are some variables which may impact the levfand budget in2005~ 1. The 2005 proposed general fund 'expendit~es are undetermined. , , ' .. 2. The2005requireddebtlevy increase is $269,000,which is a 3.5% increase in the tot,ll . levy. 3. There, is no HRA leryproposed for2005. 4. The overall 2005 levy increase is yettobe determined. ' , , . .. 5. , The debt service levy increase impacts the average homestead by $17 a year, or 1.8%. , The small increase is a result of T~x Increment Financing (TIF) district 1-1, being . decertified in 2005. By decertifYing TIFdistricti-l an additional $1,000,000 will be , added to net tax capacity value which will contribute to establishing a lower overall tax " " " , capacity rate. ' .. . . 6. A 1 % levy increase equals $77,000 of new revenues.. ' " , . 7.. Every 1% increase in levy is a$5increase in property taxes or a :5% increase in city .. property taxes. ,', 8. The franchise fee is still included in projectedrevell\.1es at $1 per utility bill per month. , or $290,000. 9. The, total general fund reserve balance is $3,801,217. It is our policy to have at least 50% ", , ,- ., of the tax levy in fund balance reserves to cover our expenditures in the general fund from January through June. Fifty percent of our projected general fund levyis$3,327,160. "c We are approximately $474,000 over our goal in general fund reserves. 2004 AVERAGE HOME MARKET VALUE $164,000 2005 PROJECTED AVERAGE HOME MARKET VALUE . $187,000 (increase from limited market value coming off and actual increase, in value - up 14%) 2004 CITY TAX ON A VERAGE HOME $ 935 '. 2005 PROJECTED CITY TAX ON HOME IF LEVY INCREASE IS 3.5% $ 952 .' , f 'i; LEVY LIMIT . INCLUDES GENERALI"UND, DEBT SERVICE, HOUSING & REDEVELOPMENT andPE]lA " HISTOiuc,CURRENT ANn PROJECTED1'AXLEVIESAND CITY TAX RATES Total City, Levy' Total Levy Tax Tax Gross Payable ' Before Tax Capital 'HRA Debt PERA Levy , ,Capacity Tax Levy Years Credits Capacity Levy TaX Levy Tax Levy ,Tax Levy AfterCredits Rate Increase 2008/09 9,356,136 ' 16,510,019 125,000 50,000 1,190,000 ' 11,815 7,979,801 48.316% 3.71% 2067/08., 9,021,136 16,180,741 100,000 40,000 1,265,000 11,815 7,666,099 " 47.378% 4.49% 2006/07 ,,8,(i33,136, 15,835,957 75,000 30,000 1,287,000 11,815 7,347,485 46.39,7% 4.23% 2005/06 8,283,136 15,068,460 50,000 20,000 1,297,000 11,815 7,105,537 ' 47.155% 3.43% 2004/05 8,008,136 13,969,662 ,25,000 10,000 1,307,000 ,11,815 6,949,569 49.748% 3,95% facility 2003/04*** 7,704,136 11,901;703 - - 1,038,000 11,815 6;767,872,' 56;865% 7.48% no 19a 2002/03 * * 7,168,252 11,140,721 - 1'06,000 883,000 11,815 '6,348,865 .. 56.988% ' 8.76% facility 2001102* 6,591,140 10,658,607 - 100,000 342,000 11,815 ' 5,850;411 54.889% 9.78% no haca" 2000/01 6,003,993 '13,451,366 342,000 4,314,233 32.073% 6.00% 1999/00 5,664,144, 12,526,355 330,000 4,022,438 32.112% 5:23% .98/99 5,382,640 11,749,302 ' 330,000 ' 3,811,583 32.441% ' 3.63% 1997/98 .5,194,184 11,936,742 330,000 3,635,016 30.4'52% ,0.30% 1996/97 5,178,800 13,194,123 739,663 3,647,887 27.648% 1.21 % 1995/96 ',5;117,000 " 12,902,081 578,574 '. 3,682,276 28.540% 3.30% 1994/95 4,953,600 ,12,981,406 573,947 3,510,380 27.042% * NO HACA ** First portion of new facility bonds levied " ***Levy for second portion of new facility bonds and no local government aid. '. Page 4