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Memo - City Council
<br />2016 Proposed Preliminary Budget and Tax Levy
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<br />Union negotiations will be held this fall as the current contract will end on December 31, 2015 –
<br />it is unknown what the results of those negotiations will be.
<br />
<br />As we have now completed and adopted the compensation study, the consultant told us that our
<br />salary scale was based on 2014 salaries which were 2% behind the market. How does the
<br />Council want to look at this? During the 2015 budget discussions the COLA was left at 1.5%
<br />pending the outcome of the Compensation Study, how would the Council like to handle the
<br />compensation scale to get it to market?
<br />
<br />
<br />General Fund
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<br />Issues to Consider
<br />
<br />Public Safety costs are set to increase by 7.85% for Fire and 2.89% for the Sheriff contract. This
<br />alone would amount to a $67,463 increase in the budget or a levy increase of 2.0%.
<br />
<br />Capital Funds were discussed at our June meeting during the Capital Improvement Plan (CIP)
<br />review. It should be noted that we still have not identified a funding source for this fund to build
<br />reserves. (As the Round Lake TIF District is back on the tax roll might be a case for designating
<br />funds for this purpose.)
<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 ($35,000)
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<br />Actual Proposed %
<br />Item Pay 2015 Pay 2016 Change
<br />(A)(B)(C)
<br />1.Levy before reduction for state aids $3,359,775 $3,394,775 1.0%
<br />2.State Aids - $0 $0 0.0%
<br />3.Certifed Property Tax Levy = $3,359,775 $3,394,775 1.0%
<br />4.Fiscal Disparity Portion of Levy - $248,682 $264,113 6.2%
<br />5.Local Portion of Levy = $3,111,093 $3,130,662 0.6%
<br />6.Local Taxable Value ÷ 11,425,974 12,163,391 6.5%
<br />7.Local Tax Rate = 27.228%25.738%-5.5%
<br />8.Market Value Referenda Levy $0 $0 0.0%
<br />9.Fiscal Disparity Portion of Levy (SDs only)- $0 $0 0.0%
<br />10.Local Levy = $0 $0 0.0%
<br />11.Referenda Market Value ÷ 1,119,584,100 1,144,235,400 2.2%
<br />12.Market Value Referenda Rate = 0.00000%0.00000%0.0%
<br />Taxable Taxing
<br />Market Homestead Taxable District
<br />Value Exclusion Market Tax Net
<br />B/4 Credit Credit Value Capacity Tax
<br />Proposed Pay 2016
<br />Pay 2013 MV 76,000@.40%500,000@1.0%(B7 x G) +
<br />X 0.988 - rem up to 413799 @.09%(D - E)rem @ 1.25%(B12 x D)Annual Increase Monthly incr.Annual Increase Monthly incr.Annual IncreaseMonthly incr.
<br />Estimated Tax District rate as % of total rate:
<br />150,000 23,740 126,260 1,263 $325.07 ($10.65)(0.89)$ ($14.27)(1.19)$ $3.62 0.30$
<br />300,300 10,213 290,087 2,901 $746.66 ($27.70)(2.31)$ ($36.03)(3.00)$ $8.33 0.69$
<br />350,000 5,740 344,260 3,443 $886.16 ($32.79)(2.73)$ ($42.67)(3.56)$ $9.88 0.82$
<br />500,000 - 500,000 5,000 $1,286.90 ($50.54)(4.21)$ ($64.89)(5.41)$ $14.35 1.20$
<br />750,000 - 750,000 8,125 $2,091.21 ($75.87)(6.32)$ ($99.19)(8.27)$ $23.32 1.94$
<br />Impact from Market Shifts
<br />Total Change and Fiscal Disparities Impact from Levy Incr
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