09-29-14-R - Laserfiche WebLink

Home Browse Search

Memo - City Council 2015 Proposed Preliminary Budget and Tax Levy 6 2015 Rate Increases Water 2% Sanitary Sewer 2% Surface Water 3% Issues to Consider Public Safety costs are set to increase as listed above. This alone would amount to an $86,118 increase in the budget or a levy increase of 2.6%. In 2014 we made a structural change to put Park and Street maintenance items in the General Fund operating budget for those departments and discontinue the transfer of $200,000 from the General fund to the PIR. A TCAAP Capital Fund was established and only general TCAAP expenses are being budgeted in the TCAAP department – all items related to the JPA which the City is responsible for are going to the TCAAP Capital Fund. Other Funds We have had previous discussion about the EDA Fund. A $30,000 transfer from the General Fund to the EDA has been included in the levy and budget proposed above. Capital Funds were discussed at our June meeting during the Capital Improvement Plan (CIP) review. It should be noted that we still have not identified a funding source for this fund to build reserves. Enterprise Funds are being evaluated and changes made to accurately reflect economic conditions and historical trends and any increases that may be passed through to us by other agencies. GENERAL INFORMATION A preliminary levy needs to be established and certified by September 30 th each year, while the final levy needs to be established and certified by December 26th. 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 5.00% levy increase provides no opportunity to build fund balances in capital funds (Park Fund, PIR/Capital, and Public Safet y). The preliminary budget includes the use of $18,998 in reserves to balance the budget. DIRECTION REQUESTED: Adoption of Resolution 2014-045, a resolution setting the preliminary levy for taxes payable in 2015.