Memo- 98 Budget Goals
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Memorandum
I Office of the City Manager I
To:
From:
Date:
Subject:
Honorable Mayor and Members of the City Council
Steven C. Mielke, City Manager
March 7, 1997
1998 Budget Goals
During the 1997 budget process, the City Council indicated that it was important to
dedicate more time during 1997 to planning the 1998 budget, and that greater attention
should be paid to the budget and its property tax implications.
As a result of that discussion, I have prepared a draft of 1998 budget goals which I
would appreciate the Council discussing and providing feedback as I start preparations
for the 1998 budget.
Attached is a draft of potential 1998 budget goals. At the work session I will review
each of these with the Council in more depth, and provide explanations of some of the
terms and interpretations of the goals as I understand them.
I look forward to the Council's feedback and direction.
Mayorecbudgetgoals
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1998 Budget Goals
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In discussion and preparation for the 1998 budget deliberations the
city council has established the following goals:
. Maintain the tax levy at the 1997 amount.
. Maintain Basic city services at current levels.
. Analyze all programs and services to:
- look for ways to reduce dependency on the property tax,
- find greater efficiencies in the provision of current services and
programs,
- compare staffing levels to workloads to assure proper
allocation of resources,
- create greater linkages between revenues and expenses, to
allow for more entrepreneurial approaches to non-essential
services.
. Forecast funding needs and tax implications to assure strong long-
term financial stability.
. Provide adequate funds to meet necessary technology upgrades.
. Continue policy of not using fund balances for operating expenses.
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REAL ESTATE
PERSONAL PROPERTY
NET TAX CAPACITY
TAX IMPACT - RESIDENTIAL HOMESTEAD PROPERTIES
Basis for ''Your Actual Property Tax for 1997"
Target Tax Change at Median Home of 3.43%
ACTUAL
TAX CAPACITY
95 PAY 96
$15,350,398
278,037
15,628,435
less FISCAL DISPARITY CONTRIBUTION
less TIF CAPTURED TAX CAPACITY
ADJUSTED NET TAX CAPACITY
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TAX LEVY
less FISCAL DISPARITY DISTRIBUTION
less HACA
.DJUSTED TAX LEVY
::: ;.~::;r ';:(~:.:':':~\!}:; ': '(: :~.;; < ':fV:::' .....
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1,722,460
1,003,894
12,902,081
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$5,117,000
496,134
938,590
3,682,276
ACTUAL
TAX CAPACITY
96 PAY 97
$15,772,252
284,643
16,056,895
1,748,868
1,113,904
13,194,123
$5,178,800
569,740
961,173
/'E>17,887
$ CHANGE % CHANGE
$421,854
6,606
428,460
26,408
110,010
292,042
2.75%
2.38%
2.74%
1.53%
10.96%
2.26%
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$61,800
73,606
22,583
1.21%
14.84%
2.41%
j~4,~89J (0.93%)
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ADJUSTED TAX LEVY
DIVIDED BY ADJUSTED NET TAX CAPACITY
EQUALS CITY TAX RATE
$3,682,276
12,902,081
28.542%
$3,647,887
13,194,123
27.650%
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CITY TAX-RESIDENTIAL HOMESTEAD
95 PAY 96
$57,600
$67,200
$76,800
$86,400
'. $92,~~'
$105,600
$144,000
$216,000
$288,000
I Assumes value increase of 4.2%
96 PAY 97
$60,000
$70,000
$80,000
$90,000
....~~"C;$96;POO,. .
$110,000
$150,000
$225,000
$300,000
PAY 1996
$164
$192
$233
$288
:'. ':.$321;.
$397
$616
$1,027
$1,438
($34,389)
292,042
(0.892%)
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PAY 1997
$166
$194
$243
$299
$332.....
$409
$630
$1,045
$1,460
(0.93%)
2.26%
(3.13%)
% CHANGE
1.22%
1.00%
4.29%
3.82%
'.3;43%;>
3.02%
2.27%
1.75%
1.53%
$ CHANGE
$2
$2
$10
$11
$11 ..'
$12
$14
$18
$22