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Department Approval: REQUEST FOR COUNCIL ACTION Manager Approved: Item Description: Adopting the 2004 Preliminary Tax Levy and Budget Introduction Date: 9/15/2003 Item No: IX. T Agenda Section: Organizational Business State Statute requires all cities in excess of 2,500 in population, to adopt a preliminary tax levy and budget by September 15 1h for the upcoming fiscal year. The preliminary levy is certified to the County, whom ire turn uses the information to prepare truth -in- taxation notices which are mailed to individual property owners. An example of a typical truth -in- taxation statement, and publication notice is enclosed as Attachments A and B. The Final 2004 levy and budget are scheduled to be adopted in December. Once the preliminary levy is adopted it can be lowered, but not increased. In July of this year, Staff submitted a proposed budget for Council review, along with an addendum from the City Manager which outlined some budget reductions. Are initial presentation was made on July 28, 2003, followed by three budget worksessions in August. To date, the only change that was agreed to by a majority of the Council is the removal of all out -of- state training or travel for 2004, a reduction of approximately $10,000. Other ideas and preferences were suggested but were not formally acted upon. D 0 0 iscussion Items To facilitate the continuing budget deliberations, the following discussion topics are submitted for consideration 1) The City is faced with a loss of $700,000 in state -aid for 2004. What approach does the Council wish to take in eliminating this structural gap? Possible solutions could include cutting tax-supported programs and services, using reserves, increasing fees for fee - based programs, increasing taxes, or a combination of these options. 2) A tentative HRA levy in the amount of $200,000 was agreed to in August. Does the Council wish to leave the levy and amount in place for 2004? 3 ) The Roseville Fire belief Association has requested an increase in funding for 2004 in the amount of $117,392. The amount was based on the Pension Fund's unfunded liability as of 12131/02, and the request was made in accordance with State Statutes. The requested amount is not in the 2004 Budget. Additional funding would need to be added if the Council wishes to adhere to State Statute. This matter was before-,the Council on June 2, 2003, at which time the Council decided to take no action.