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Rls�kspvlffi� REQUEST FOR COUNCIL ACTION Department Approval K%k A Item Description: Establishing 2009 Budget Goals & Priorities Date: 00/10/08 Item No.: 12.e City Manager Approval BACKGROUND On March 17, 2008 the City Council briefly discussed the Council's 2009 Budget goals and priorities. This was a follow -up to a meeting held on February 20, 2008 where the Council prioritized their short, medium, and long term goals. The Council also met on April 28, 2008 to discuss action steps for implementing Imagine Roseville 2025 priorities. A copy of the short -term priorities that were identified at that meeting is attached. The Council is now asked to formally identify its budget priorities for 2009. once formalized, City Staff will begin preparing fiscal and operational analyses that will identify the necessary funding and any operational impacts or challenges that might result. This information will be shared with the Council in mid -July. Pending Council direction, these priorities will then be incorporated into the City Manager Recommended Budget which is due out in mid - August. The following information is submitted in an effort to assist the Council in establishing its budget priorities. Budget Impacts - General The following general items are expected to impact the City's 2009 Budget: ❖ overall, in 2009 the City's tax base is expected to grow approximately 4 -5 %, primarily due to new construction and commercial valuation increases. In the event the Council determines that the 2009 maximum levy increase ought to be tied to the growth in the tax base, the City could effectively increase the levy by approximately $500,000 or 4 %, and keep the local tax rate the same. ••• Based on preliminary estimates under the recently passed Transportation Bill, the City expects to receive an additional $105,000 for street improvements in 2009. However, at best, this will simply allow the City to keep pace with inflation. ••• Levy limits were enacted for the 2009 -2011 fiscal years. As widely reported, the City would be restricted to limiting its property tax levy increase to 3.9% each year. However, a number of exceptions are allowed which should provide the City with additional flexibility. Based on information known at this time it appears that the City will have the ability to increase the levy by as much as 5 or 0% depending on what uses the levy dollars are applied to. Page 1 of 5