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Memo - City Council
<br />2015 Proposed Preliminary Budget and Tax Levy
<br />4
<br />
<br />General Fund
<br />
<br />Issues to Consider
<br />
<br />Public Safety costs are set to increase by 6.54% for Fire and 4.5% for the Sheriff contract. This
<br />alone would amount to a $77,002 increase in the budget or a levy increase of 2.4%.
<br />
<br />In 2014 the City Council made a structural change to put Park and Street maintenance items in
<br />the General Fund operating budget for those departments and discontinue the transfer of
<br />$200,000 from the General fund to the PIR. Capital Funds were discussed at our June meeting
<br />during the Capital Improvement Plan (CIP) review. It should be noted that we still have not
<br />identified a funding source for this fund to build reserves.
<br />
<br />We have had previous discussion about the EDA Fund. Staff is recommends that a funding
<br />source be found for this fund in the future as the current funding source of from the TIF District
<br />and the conduit debt fees will not be ongoing. Staff recommends that the Council consider
<br />recommending the EDA establish a levy to fund this activity. This would be shown on the
<br />property tax statements as a special taxing district, however a preliminary levy would have to be
<br />certified by September 15, 2014 to the County as it is a special taxing district.
<br />
<br />Sample Levy Increases
<br />
<br />Staff has prepared a number of tax levy scenarios for discussion in evaluating setting a levy.
<br />
<br />1% Levy Increase (+ $31,000 in tax revenue)
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<br />ActualProposed%
<br />ItemPay 2014Pay 2015Change
<br />(A)(B)(C)
<br />1.Levy before reduction for state aids$3,257,456$3,288,4561.0%
<br />2.State Aids- $0$00.0%
<br />3.Certifed Property Tax Levy= $3,257,456$3,288,4561.0%
<br />4.Fiscal Disparity Portion of Levy- $254,738$248,682-2.4%
<br />5.Local Portion of Levy= $3,002,718$3,039,7741.2%
<br />6.Local Taxable Value÷ 10,741,74911,425,9746.4%
<br />7.Local Tax Rate= 27.954%26.604%-4.8%
<br />8.Market Value Referenda Levy $0$00.0%
<br />9.Fiscal Disparity Portion of Levy (SDs only)- $0$00.0%
<br />10.Local Levy= $0$00.0%
<br />11.Referenda Market Value÷ 1,052,783,0001,119,584,1006.3%
<br />
<br />12.Market Value Referenda Rate= 0.00000%0.00000%0.0%
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<br />(D)(E)(F)(G)(H)(I)
<br />TaxableTaxing
<br />MarketHomesteadTaxableDistrict
<br />ValueExclusionMarketTaxNet
<br />B/4 CreditCreditValueCapacityTax
<br />Proposed Pay 2015
<br />Impact from Market Shifts
<br />Pay 2013 MV76,000@.40%500,000@1.0%(B7 x G) +
<br />Total Changeand Fiscal DisparitiesImpact from Levy Incr
<br />X 0.988(D - E)rem @ 1.25%(B12 x D)
<br />Annual IncreaseMonthly incr.Annual IncreaseMonthly incr.Annual IncreaseMonthly incr.
<br /> - rem up to 413799 @.09%
<br />Estimated Tax District rate as % of total rate:
<br />150,000 23,740 126,2601,263$336.01$30.19$ 2.52$26.77$ 2.23$3.42$ 0.29
<br />295,100 10,681 284,4192,844$756.62$54.14$ 4.51$46.43$ 3.87$7.71$ 0.64
<br />350,000 5,740 344,2603,443$915.98$63.66$ 5.31$54.33$ 4.53$9.33$ 0.78
<br />500,000 - 500,0005,000$1,330.20$76.74$ 6.40$63.19$ 5.27$13.55$ 1.13
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<br />750,000 - 750,0008,125$2,161.58$160.63$ 13.39$138.61$ 11.55$22.02$ 1.83
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