2009-12-09 CC Packet - Laserfiche WebLink

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Introduction To the Mayor and City Council, Enclosed is the 2010 budget as prepared by City Staff, in accordance with City Council guidance. As you are aware, the construction of the 2010 budget is a year long process commencing with Mayor, Council, and Staff input, numerous budget work sessions, and finally culminating in the provided document. Major initiatives and goals were set forth during this budget process with a special focus on maintaining the current level of city services, mitigating the overall increase in property taxes and maintaining efficient levels of fund balances. To that end, several challenges presented themselves during this process including the Govemors unallotment of the City's market value homestead credit and original estimates projecting budget shortfalls of roughly $350,000. Ultimately, the Mayor and City Council balanced the 2010 by utilizing the following revenue enhancements and expenditure reductions — increasing the levy by the maximum allowed by law, freezing employee salaries, significantly reducing the funding for Fete De Lacs, delaying the purchase of a public works truck and restructuring the interfund loans to different terms. General Fund Budget Summary Revenue Property Tax (Tax Levy): The property tax levy is projected to increase from $2,043,820 in 2009 to $2,265,661 in 2010 or by 11 %. This increase is attributed to the ability to increase the general levy up to its maximum by law and an additional $146,200 in debt service levy. The components of the 2010 levy are chronicled below: Levy under limit $1, 761,561 MVHC 2008 SO MVHC 2009 $0 2004 B Bond Levy $123,000 2005 A Bond Levy $77,600 2007A Bond Levy $178,500 2009 A Bond Levy $125,000 Toter 52,265,661 Local Government Aid: The City is projected to receive $0 in Local Government Aid in 2010. Licenses and Fee: The City is projecting a decrease in this revenue classification for 2010 and is budgeting $24,000 or a decrease of 36% from the 2009 budgeted amount. Fines and Forfeits: The City is projecting no substantive change in this revenue classification and is budgeting $33,500 for 2010 or a 4% decrease from the 2009 budgeted amount. Building Inspection (Permits): The City is projecting a significant decrease in revenue in this classification during 2010 mainly because there will be less permit activity throughout the city. The 2010 budgeted amount for building permits is $94,500 or a 35% decrease from 2009. 28