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REQUEST FOR COUNCIL ACTION <br /> Date: 1210212002 <br /> Item No: VI. A. <br /> Department Approval: Manager Approved: Agenda Section: <br /> (01100 &eb <br /> Hearings <br /> Item Description: Truth-in-Taxation Continuation Hearing on the 2003 Proposed Tax Levy and Budget <br /> Introduction <br /> The Initial Truth-in-Taxation-hearing was held on December 2, 2002. The memo explaining the <br /> preliminary budget and levy is attached to this memo. Tonight's meeting serves as the <br /> Continuation Hearing for the purposes of continuing discussion on the proposed budget and <br /> levy. The Subsequent Hearing is scheduled for Monday, December 16, 2002, at which time the <br /> Council will adopt the 2003 Tax Levy and Budget. <br /> A presentation by City Staff was made at the Initial Hearing which satisfies the statutory <br /> requirements. However, Staff is prepared to repeat the presentation if desired by the Council for <br /> the benefit of the public. <br /> Council Inquiries at the Initial TNT Hearing <br /> At the initial TNT hearing, two inquiries were made by the Council. <br /> 1. Health Care Cost Increases. The first inquiry was in regards to the City's increasing health <br /> care costs. It was noted the City was incurring a 12% increase in health care costs. This <br /> translates into approximately $150,000 in additional citywide healthcare costs. The amount <br /> would have been $300,000, or a 25% increase, had the City remained with its existing insurance <br /> provider. To avoid this cost, the City switched providers and was able to realize "only" a 12% <br /> increase. <br /> 2. A Zero-Increase Levy. The second Council inquiry was in regard to the possibility of having <br /> a zero-increase in the levy. The proposed budget calls for an increase of $147,171 or 1.65%. To <br /> accomplish a zero-increase levy, $ 147,171 must be eliminated from the 2003 proposed budget. <br /> This can be accomplished in many different ways with varying impacts. <br /> The Council may recall a discussion on this subject matter during the budget meetings held <br /> earlier this summer. It was noted at the time that any level of cuts could be made if desired by <br /> the Council. In an effort to provide discussion points, Staff included a list of potential program <br /> cuts in the budget document, dated July 22,2002. The following is an excerpt from that list: <br />