2B, 2011 Final Budget - Laserfiche WebLink

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�EN HILLS MEMORANDUM DATE: November 15, 2010 TO: Honorable Mayor and City Council Members FROM: Patrick Klaers, City Administrator SUBJECT: Proposed 2011 Budget Background On September 13, 2010 the City Council approved a proposed maximum tax levy of $3,088,964 for 2011. The tax levy as proposed is a $72,499 or 2.4% increase over the 2010 level. Additionally, on September 13 a balanced draft General Fund budget in the amount of $3,936,344 was proposed and accepted by the Council on a preliminary basis. The budget as proposed is a $105,187 or 2.75% increase over the 2010 level. All of this was done on September 13 with the knowledge that another budget and tax levy work session would be held prior to the December 6 Truth -in- Taxation public hearing. Since the September 13 meeting, a number of minor changes in the 2011 proposal have been identified. The Finance Department has made these adjustments to the 2011 draft budget. These changes result in additional expenditures in the amount of $2,978. In terms of trying to reduce spending and /or trying to reduce the tax levy, I had a memo in the September 13 agenda packet that listed some options for the Council to consider. Please note that within this list was the use of reserves in the amount of $41,201. This amount matches what was used to balance the 2010 budget. At this time, zero reserves are included in the 2011 proposal. As we all know, once a City begins using reserves to balance the operation budget, it gets hard to "kick the habit Nonetheless, the City does have General Fund balance of approximately 1.8 million dollars. The General Fund reserves are 54% of the General Fund expenditures based on the 2009 budget and this percentage is not expected to change much for 2010.