Laserfiche WebLink
<br /> '. <br /> . ~ <br /> . ~HILLS <br /> MEMORANDUM <br /> DA TE: November 20, 2006 AGENDA ITEM: 2A <br /> TO: Mayor and City Council <br /> FROM: Michelle Wolfe, City Administrator ~ <br /> SUBJECT: Work Session Discussion: Proposed 2007 Budget <br /> BACKGROUND <br /> The 2007 Budget preparation process began scvcral months ago, In essence, we have been <br /> working on developing the 2007 capital budget for most of this year, as we have continued to <br /> refine the five-year CIP program. At the August Work Session, Council expressed a general <br /> level of comfort with the proposed 2007 capital plan. Therefore, the 2007 budget has been <br /> prepared with those identified projects included, Proposed capital purchases and projects would <br /> . be brought back to Council prior to proceeding. <br /> In addition, at previous Work Sessions the Council provided general direction regarding some <br /> key budget issues, most significantly salaries and benefits, That direction has bccn incorporated <br /> into the proposed budget. At the August Work Session, Council was provided an update <br /> regarding the budget development process, with some key points highlighted, At that time we <br /> provided a document entitled "Budget Highlights" in which we tried to capture items that would <br /> reflect a change from 2006, <br /> At the September II, 2006 meeting, the City Council approved a preliminary tax levy amount of <br /> $2,675,161, which represents a 6% increase from the 2006 levy, At the D,ecember 11 City <br /> Council meeting, Council will bc asked to approve a final 2007 tax levy as well as a 2007 <br /> Budget. The tax levy cannot be increased from the preliminary levy amount; it can be decreased. <br /> INITIAL BUDGET ASSUMPTIONS <br /> Based on previous Council direction, the 2007 budget was prepared with the following <br /> assumpti ons: <br /> 1. Salaries are based on the existing compensation plan and a 2,75% annual adjustment on <br /> January 1,2007, (The existing union contract includes a 2,75% increase for the union <br /> employees.) <br /> 2, The City's contribution towards employee benefits is calculated based on the increase in <br /> . premiums, Historically the City has increased the contribution by 50% of the increase in <br />