Laserfiche WebLink
REQUEST FOR COUNCIL ACTION <br /> Date: 9/09/2013 <br /> Item No.: 12.a <br />Department Approval City Manager Approval <br />Item Description: Adopt a Preliminary 2014 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 <br />2 <br />th <br />budget by September 15 for the upcoming fiscal year. Once the preliminary levy is adopted it can be <br />3 <br />lowered, but not increased. The adoption of a preliminary levy and budget does not preclude further <br />4 <br />review. It is anticipated that several budget-related discussions will be held later this year leading up to <br />5 <br />the adoption of the final 2014 levy and budget on December 2nd or December 9th. <br />6 <br />7 <br />The City Council received the 2014 City Manager Recommended Budget on August 19, 2013. The full <br />8 <br />presentation of this Budget is included in Attachment D. A summary is presented below. <br />9 <br />10 <br />2014 Recommended Budget <br />11 <br />The 2014 City Manager Recommended Budget for the tax-supported programs is $23,008,060, an <br />12 <br />increase of $1,223,258 or 5.6%. The increase includes $560,000 for the remaining debt obligations <br />13 <br />associated with the Parks Renewal Program. It also includes $225,000 in additional capital funding that <br />14 <br />was made possible by an appropriation of Local Government Aid. <br />15 <br />16 <br />The remaining $438,258 is needed to maintain current programs and services that residents have come <br />17 <br />to expect. This operating budget increase amounts to a 2.0% increase which is less than the rate of <br />18 <br />inflation expected by most economic forecasts. <br />19 <br />20 <br />21 <br />Highlights of the Recommended Budget <br />: <br />22 <br />Funding for a revised employee Compensation Plan that adjusts for inflation and is <br />committed to wage levels that are more comparable to peer cities. This includes a 2% <br />cost-of-living adjustment for all regular, on-going employees and a 2.6% market <br />st <br />adjustment for most non-union employees beginning January 1. It also includes a <br />st <br />supplemental 2.0% market adjustment effective July 1. The overall market <br />adjustment of 4.6% is consistent with the recommendations identified in the <br />Compensation Study to bring employees to 100% of the peer city average. <br />An appropriation to provide for a 3% employer-match to health insurance premium <br />increases. <br />Page 1 of 10 <br /> <br />