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NEW BUSINESS—9B <br /> ,--`iIZEN HILLS <br /> MEMORANDUM <br /> DATE: September 14, 2020 <br /> TO: Honorable Mayor and City Councilmembers <br /> Dave Perrault, City Administrator <br /> FROM: Gayle Bauman, Finance Director <br /> SUBJECT: Consider Approval of Preliminary Tax Levy Payable in 2021 and Setting Budget <br /> Public Hearing Date <br /> Budgeted Amount: Actual Amount: Funding Source: <br /> N/A N/A N/A <br /> Council Should Consider <br /> Motion to adopt Resolution 2020-038 setting the Preliminary Levy for Taxes Payable in 2021, <br /> motion to adopt Resolution 2020-039 setting the Preliminary Levy for Taxes Payable in 2021 for <br /> the Karth Lake Special Taxing District, and motion to adopt Resolution 2020-040 adopting Truth <br /> In Taxation Public Hearing Date for Proposed Taxes Payable in 2021. <br /> Background <br /> State law requires that cities certify their proposed property tax levies to the county auditor by <br /> September 30th. The proposed tax levy that is given preliminary approval may be lowered but <br /> cannot be increased. Therefore, it is important that the proposed tax levy provides adequate <br /> revenues to finance the 2021 Budget. The City Council needs to decide the maximum levy that it <br /> is willing to approve and then adopt the attached resolution. The final levy will be set in December <br /> 2020. <br /> A budget workshop was held with the Council on August 17, 2020. Staff was directed to reduce <br /> the proposed COLA for non-union employees from 3%to 2% and to raise the proposed maximum <br /> levy increase from 3% to 5%. There will be another budget workshop in either October or <br /> November, prior to the final levy and budget adoption meeting in December. <br /> Discussion <br /> Expenditures <br /> The 2021 preliminary budget is currently being prepared assuming a 2.0%wage adjustment for non- <br /> union staff, the IUOE Local 49 Union Contract was approved back in December 2019 at 3% for <br /> 2021. There is also a 3%increase assumed for health, a 0.0%increase for dental and a 0.0%increase <br /> for life insurance premiums. No new positions are included in the budget but there were changes to <br /> some of the wage allocations. <br />