09-26-22-R - Laserfiche WebLink

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Page 1 of 6 NEW BUSINESS – 10B MEMORANDUM DATE: September 26, 2022 TO: Honorable Mayor and City Councilmembers Dave Perrault, City Administrator FROM: Gayle Bauman, Finance Director SUBJECT: Consider Approval of Preliminary Tax Levy Payable in 2023 and Setting Budget Public Hearing Date Budgeted Amount: Actual Amount: Funding Source: N/A N/A N/A Council Should Consider Motions to approve, table or deny the following: •Resolution 2022-042 setting the Preliminary Levy for Taxes Payable in 2023 •Resolution 2022-043 adopting Truth In Taxation Public Hearing Date for Proposed Taxes Payable in 2023 All items need a simple majority for action unless otherwise noted. Background State law requires that cities certify their proposed property tax levies to the county auditor by September 30th. The proposed tax levy that is given preliminary approval may be lowered but cannot be increased. Therefore, it is important that the proposed tax levy provides adequate revenues to finance the 2023 Budget. The City Council needs to decide the maximum levy that it is willing to approve and then adopt the attached resolution. The final levy will be set in December 2022. A budget workshop was held with the Council on August 15, 2022. Staff was directed to provide proposed maximum levy increase options from 4% to 7%. There will be another budget workshop in either October or November, prior to the final levy and budget adoption meeting in December. Discussion Wages and Benefits The 2023 preliminary budget is currently being prepared assuming a 3.0% wage adjustment for all staff. There was a survey completed of neighboring communities and many are at 3.5% or higher. It is important for the City to remain competitive in the marketplace. There is also a 6.5% increase assumed for health, a 3% increase for dental and a 0.0% increase for life insurance premiums. The number of positions included in the budget is remaining the same. There are changes to some of the wage allocations, the City