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In his Recommended Budget, the City Manager acknowledged that much of the 2009 Budget remains 32 frozen at 2008 levels. He wrote.- 33 34 ". . . stagnant operational spending will have some effects in reducing service levels, such 35 as: 37 ❖ Reduced street seal coating 38 Reduced contractual street maintenance 39 Reduced service level in [(, "i yj facilities _y tir 40 Reduced staffing at (,ommunity events 41 42 These impacts were further emphasized in the September 1 5th Staff Report to Council which stated.- 43 44 "'Because of inflationary impacts; freezing the budgetfob' supplies, contracted services, and 45 other areas will somewhat inhib�it our ability to maintain current service levels. We 46 anticipate challenges with: 47 48 Maintaining desired street conditions 49 Providing satisfactory snow removal and ice-control Maintaining City parks, pathwa andstreellights YS Diseased and haiardous tree removal ❖ Police and Fire presence at comp 'un ity events Pro per fun dingfob' police, fire, and maintenance vehicles ("ontinuing education and training for (7ity employees Responding to unforeseen events or circumstances tir 7 In short,, the 2009 Tax Levy will be insufficient to provide the level of service that the community has been accustomed to. City Staff is expecting a significant increase in citizen concerns and complaints. In 59 addition,, City Staff remains concerned about the added liability the City will incur when its ability to take 6('_) proactive measures is diminished. 6 1 62 Taxpayer Impact 63 The 2009 Tax Levy, as adjusted above, is $,13,955,580, an increase of $,1,059,220 or 8.2%. With this 64 increase,, a typically-valued home would pay approximately $,623 per year or $,52 per month holdi 6�" other factors constant. This represents an increase of $,6.15 per month or 13.4%. However, many 66 homeowners will experience a smaller increase. Based on aggregate data provided by Ramsey County, 67 4 % of all homes experienced a decline in value or stayed the same. If a typical home experienced a 3% 68 decrease in value (like many have)l,, the tax increase would only be $,4.35 per month or 9.5%. 69 "7 ('_) To summarize,, in 2009 a typical household will pay $,52 per month in property taxes. This is comparable to 7 1 what a homeowner pays independently for gas, electric, telephone, cell phone, and cable tv. 72 POLICY OBJECTIVE 73 Not applicable. 74 FINANCIAL IMPACTS "7 Not applicable. Page 2 of 3