CCP 11-15-2004 - Laserfiche WebLink

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~ . ~ ~~HILLS MEMORANDUM DATE: November 9,2004 Agenda Item: 2.D TO: Honorable Mayor and City Council FROM: Murtuza Siddiqui, Finance Directorrrreasurer .......S SUBJECT: 2005 Proposed Budget BACKGROUND: At the June 21,2004 Work Session, Murtuza Siddiqui presented an overview of the City's Financial Structure and requested the Council to provide a general guidance to staff as they prepare the Preliminary 2005 Budget. At that meeting, the following direction was provided by the Council: . . Assume a levy increase in the range of3% to 4%, with a desire to stay closer to 3%. . Assume a 3% increase in step/COLA. . Increase per employee (non-bargaining) City contribution to health/dental benefits to $533 per month. At the August 16, 2004 Work Session, Michelle Wolfe and Murtuza Siddiqui presented a 2005 Preliminary Budget. Staff mentioned that based on the direction provided at the August 16th meeting, the budget will be adjusted accordingly over the next two to three months, prior to its finalization. The Council also directed staff to prepare a revised Five Year CIP and to conduct a Utility Rates Study. The revised budget would incorporate the revised CIP as well as the new utility rates. At the August's meeting, there was also a consensus to certify a preliminary tax levy of 4%, with an understanding that the final certification may change. DISCUSSION: Staff has taken a conservative approach in preparing this budget. The Proposed 2005 Budget has incorporated the following assumptions: . Levy increase was limited to 4%. The 2005 levy revenue has been conservatively budgeted at 98.5% in anticipation of tax petitions or any other shortfall. If collection is higher than anticipated, it will offset any other revenue shortfall, or provide the opportunity to fund unanticipated projects, or contribute to the Capital Improvement Fund. e