8A, 2012 Operating Levy Payable 2013

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Memo - City Council 2013 Proposed Preliminary Budget and Tax Levy 8 Items Still Included in the 2013 Budget are: Impact Department Description Amount to Levy Celebrating Arden Hills Community Event(net cost to budget) $ 10,000 0.32% City Council National Training Costs 2,400 0.08% Administration City Administration National Conference 1,200 0.04% All Departments-General Fund Wages at 2%COLA 17,000 0.55% Transfers Transfer to Equipment Fund 40,000 1.29% Transfers Transfer to PI Fund 200,000 6.46% Possible Administration reductions are related to staff development activities and financing services, like Ehlers, to work on the TIF guidelines, etc. If these reductions are made $18,000 would still remain in the Administration budget for unspecified projects and $40,000 would remain in Planning & Zoning for work on such projects as the B2 Plan and a Grey Fox Area Study. After the reduction in TCAAP, $50,000 would remain, if this is not enough to cover expenses, the General Fund reserves or the PIR Fund reserves will have to be used to cover the expenditures. GENERAL INFORMATION A preliminary levy needs to be established and certified by September 15th each year, while the final levy needs to be established and certified by December 201h of each year. As Council knows, once a preliminary levy is established, the amount can be reduced, but it cannot be increased. It should be noted that the 4.1% levy increase provides no opportunity to build fund balances in capital funds (Park Fund, PIR/Capital, and Public Safety). The preliminary budget includes the use of$20,453 in reserves to balance the budget. DIRECTION REQUESTED: Council discussion and direction on where to set the preliminary levy for taxes payable in 2013 knowing that the levy may be reduced before final adoption in December but not increased. (Adoption of Resolution 2012-031 following discussion and preliminary levy decision)