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