CCP 09-11-2006 - Laserfiche WebLink

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~ ~~ILLS MEMORANDUM . Agenda Item 7.C DATE: September 6, 2006 TO: Honorable Mayor and City Council FROM: Michelle Wolfe, City Administrator Michelle Bruley, Accounting Analyst SUBJECT: Establishing 2006 Truth in Taxation Dates and Adoption of the Operating Payable 2007 Preliminary Levy and Karth Lake Improvement District Special Levy BACKGROUND: By September 15, 2006, the City is required to adopt and certify to Ramsey County a preliminary levy and Truth in Taxation dates for the upcoming dates. . DISCUSSION: OperatiDl! Levv: At the August 21,2006, Budget Work Session, the Council discussed the preliminary levy options. Based on the discussion, staff is recommending certifying a 6% increase in levy to the County for a proposed amount of$2,675,161. This is a preliminary levy and a final certification will be made in December 2006. Due to the resignation of the City's Finance Director, staff has not completed all work on the proposed 2007 budget. A first rough draft of the budget has been completed and staff is fairly comfortable that a 4% levy increase would cover anticipated 2007 expenditures. However, staff is concerned that a 4% levy increase does not provide any ability to put money aside for future capital expenditures. Our draft five-year Capital Improvement Program and proposed Pavement Management Program anticipate significant expenditures for road maintenance and reconstruction, utility improvements, equipment replacement, and public safety capital. During the August 21 Work Session discussion it was noted that once adopted, the preliminary levy can be decreased when the final levy is adopted, but not increased. If a 6% increase is adopted for the preliminary levy, it can be lowered when the final levy is adopted in December. Prior to December, Council will have the opportunity to review the proposed 2007 budget. In addition, staif is undertaking a project to analyze the City's current fund balances, projected .