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<br />City of CAntervUle - 2010 ProDosed Budoet <br /> <br />Fund Balance <br />General Fund: The City of Centervllle has historically maintained a healthy fund balance, <br />which contributes positively to the city's bond rating and mttigates the potential for needing short <br />term borrowing. Council has a targeted fund balance reserve of 30 to 50% of current <br />expendttures or a target between ($673,000 to $1,122,000). The below represents the last two <br />years of historic general fund balance and the next two years projected general fund balances <br />basad on budgeted data. Please nole that the CRy Is projecting a balanced budget for 2010, <br />leaving the City wtth a fund balance of $1,157,516 at the end of 2010, which is 51% of 2010 <br />budgeted expendttures. <br />2007 $1,435,164 <br />2008 $1,157,516 <br />2009 $1,157,516 <br />2010 $1,157,516 <br />Tax Rate I Tax Capacity <br />The general tax rate has been relatively stable over the last three years-wtth 2007, <br />2008, 2009 having city tax rates of 45.74%, 45.81%, and 46.25%, respectively. Given overall <br />market valuations in the City have fallen by roughly 8% (in tax capacity terms) the overall tax rate <br />is projected to rise sharply-the general tax rate is expected to rise to 57.23% in 2010. That <br />being said, the tax rate is only one of the two variables one must consider before evaluating the <br />true effect on their respecttve property taxes-the other is the 2010 tax capacity. Ctties in <br />Minnesota levy actual dollar amounts and the tax rate is merely the formula for ellocatlng the <br />share to each parcel. For a graphical representation of historic tax rates and a real world <br />example of Its effects on the CRy portion of property tax see appendix E. <br />Acknowledgments <br />I would like to acknowledge and thank Mayor Capra, Council Member Lee, Council <br />Member Paar, Council Member Fehrenbacher, Council Member Broussard-Vickers, City <br />Administrator Dallas Larson and all CRy staff for their assistance in completing this budget. Wtth <br />that, I present to you the 20tO proposed budget. <br /> <br />Respectfully Submitted, <br /> <br />Mike Jeziorski <br /> <br />Finance Director <br /> <br />37 <br />