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REQUEST FOR COUNCIL ACTION <br /> Date: 9/10/2012 <br /> Item No.: 12.b <br />Department Approval City Manager Approval <br />Item Description: Adopt a Preliminary 2013 Tax Levy and Budget <br />B <br />ACKGROUND <br />1 <br />State Statute requires all cities in excess of 2,500 in population, to adopt a preliminary tax levy and budget <br />2 <br />th <br />by September 15 for the upcoming fiscal year. Once the preliminary levy is adopted it can be lowered, but <br />3 <br />not increased. Further discussion along with the adoption of the Final 2013 levy and budget is scheduled to <br />4 <br />take place on December 3rd and December 10th, 2012. <br />5 <br />6 <br />The City Council received the 2013 City Manager Recommended Budget on August 13, 2012. This was <br />7 <br />followed by a public hearing on August 27th for the purposes of soliciting public comment. The Staff <br />8 <br />Report and presentation from the hearing is attached. <br />9 <br />10 <br />2013 Recommended Budget <br />11 <br />The 2013 City Manager Recommended Budget for the tax-supported programs is $20,245,042, an increase <br />12 <br />of $2,228,482 or 12.4%. The majority of this increase ($1,650,000) is for added debt payments related to <br />13 <br />the 2011 and 2012 Bonds issued for the new fire station and Park Renewal Program. <br />14 <br />15 <br />Excluding the added debt, the increase is $578,482 or 3.0%. The increase (excluding the debt) is comprised <br />16 <br />of the following (figures have been rounded): <br />17 <br />18 <br />a)Police and Fire Dispatch - $30,000 <br />(** note this figure was lowered since 8/27/12 **) <br />19 <br />b)Fire Relief Pension Obligation - $45,000 <br />20 <br />c)Human Resources Information System - $40,000 <br />21 <br />d)Implement Compensation Study - $50,000 <br />22 <br />e)Employee COLA and Step Increases - $236,000 <br />23 <br />f)Healthcare Premium Increases - $55,000 <br />24 <br />g)Inflationary increases on supplies, maintenance, contractual services, etc. - $120,000 <br />25 <br />26 <br />The City Manager Recommended Budget for the non tax-supported programs is $23,653,968, an increase <br />27 <br />of $1,621,774 or 7.4%. The increase is due to added cost of wholesale water purchase from the City of St. <br />28 <br />Paul and wastewater treatment charges from the Met Council, as well as general inflationary increases. It <br />29 <br />also includes an additional staff position for the License Center and Information Technology divisions. <br />30 <br />Both of these positions are funded by non-tax revenue sources. <br />31 <br />32 <br />33 <br />Page 1 of 7 <br /> <br />