CCP 07-17-2000 - Laserfiche WebLink

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e . e CITY OF ARDEN HILLS MEMORANDUM DATE: July 13,2000 TO: Joe Lynch, City Administrator Terrance Post, City Aceountant@ 2001 Budget - General Fund Impact of Various New Levy Change Seenarios FROM: SUBJECT: Backl!round Ad valorem property taxes levied by the City of Arden Hills are used primarily to fund the operations of the General Fund. The City has historically (since 1994) utilized a smaller portion ($183,750 or 9.3 % in 2000) of the levy to fund operating transfers to Capital Funds including Capital Equipment, Fire Equipment and Municipal Land & Building funds. The purpose of these Capital Fund transfers has been to anticipate future capital expenditure needs, avoid expenditure spikes and avoid debt issuance with a "pay as you go" financing philosophy. As the City Council deliberates on various net levy change options for payable 2001, the continuation ofthe operating transfer for future capital outlay policy should either be reaffirmed or reevaluated. Issue The Arden Hills City Council has challenged staff to develop a preliminary 2001 budget that results in a zero (0) dollar increase over the 2000 net levy of$I,975,700. Related to this requirement was a request to prioritize spending options above the zero level that could result in a maximum increase of three (3%) percent or $59,271. 2001 Baseline The first step in this exercise is to develop a 2001 baseline General Fund budget. Specifically, the adopted 2000 budget will be rolled forward with obvious changes (i.e. no elections scheduled in 2001) in both revenue and expenditures reflected into a baseline. 1. General Fund Revenue A. Adopted 2000 Total $2,927,090 B. Adjustments I. Assume State Aids (LGA, NACA, MSA Maintenance) increase 2.5% from $180,190 to $184,695. 4,505 2. Assume additional water tower antenna rentals from Sprint for 12 months ($12,000) and Voicestream for 6 months ($6,000) 18,000