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City Manager's 2004 Budget Recommendations I note here at the beginning of this Report, and will reiterate at the end, that Department Heads recognize the need to balance our budget but would deeply regret cutting programs and services. They also differ on some spending priorities. B. Our Buildiug Pr9je ct and an H A Leyy Will Create New T - pffer Costs. Also as a part of this Introduction, we all need to reflect on two new in- creases in local tax casts at the same time the City is losing a significant amount of state funding to help us operate. These new costs relate to our building project and our Housing and Redevelopment Authority (HRA). In November, 2002, the Voters approved the bonds for our Police and Public works Building Project. The City estimated and publicized before that bond election the property tax impact of approving those bands. Our estimate was a bond interest cost equal to 10% of the average Roseville property owner's 2002 local taxes. Now that we have sold these voter - approved bonds we know our estimate was accurate. Roseville has an excellent credit rating, earning us a low interest rate on these bands. But the annual debt service for our $9.7 million in bonds for our Building project, even at favorable interest rates, is an additional $875,000 in City costs per year. We also estimate our costs of operating the new police and Public works facilities (mostly utility costs) will be about 100,000 per year. In addition, I expect that our HRA will recommend to you that the City Council authorize a $400,000 HRA levy for 2004. This would be another new cost for Roseville taxpayers to handle. C. Summau. To summarize this Introduction, the City will lase another $700,000 in state funds next year, 2004, to support City services at the sane time taxpayers in Roseville will be facing $1,375,000 in new local tax costs -- $875,000 in new debt costs, 100,000 in new utility and building opera- tion costs, and $400,000 in a new HRA levy. This is not an easy budget to balance. The following assumptions don't Delp either,