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l REQUEST FOR COUNCIL ACTION Department Approval Item Description.- Establishing 2009 Budget Goals & Priorities Date.- 6/30/08 Item No..- 12.g City Manager Approval I BACKGROUND 2 On March 17,, 2008 the City Council briefly discussed the Council's 2009 Budget goals and priorities. This 3 was a follow-up to a meeting held on February 20, 2008 where the Council prioritized their short, medium, 4 and long term goals. The Council also met on April 28, 2008 to discuss action steps for implementing 5 Imagine Roseville 2025 priorities. .A copy of the short-term priorities that were identified at that meeting is 6 attached. "7 8 The Council is now asked to formally identify its budget priorities for 2009. Once formalized, City Staff 9 will begin preparing fiscal and operational analyses that will identify the necessary funding and any I ('_) operational impacts or challenges that might result. This information will be shared with the Council in "I'll mid-July. Pending Council direction, these priorities will then be incorporated into the City Manager 12 Recommended Budget which is due out in mid-August. 13 14 The following information is submitted in an effort to assist the Council in establishing its budget priorities. I 16 Budget Impacts -1 General I 7 The following general items are expected to impact the City's 2009 Budget.- 19 ❖ Overall, in 2009 the City's tax base is expected to grow approximately 4�-5%, primarily due to new 20 construction and commercial valuation increases. In the event the Council determines that the 2009 2 1 maximum levy increase ought to be tied to the growth in the tax base, the City could effectively 22 increase the levy by approximately $,500,000 or 4�%, and keep the local tax rate the same. 23 24 Based on preliminary estimates under the recently passed Transportation Bill, the City expects to 25 receive an additional $,105,,000 for street improvements in 2009. However,, at best,, this will simply 26 allow the City to keep pace with inflation. 27 28 ❖ Levy limits were enacted for the 2009-2011 fiscal years. As widely reported, the City would be 29 restricted to limiting its property tax levy increase to 3.9% each year. However, a number of 30 exceptions are allowed which should provide the City with additional flexibility. Based on 3 1 information known at this time it appears that the City will have the ability to increase the levy by 32 as much as 5 or 6% depending on what uses the levy dollars are applied to. Page I of 5