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qASEN+L�hE <br />REQUEST FOR COUNCIL ACTION <br />Date: 12/09/2013 <br />Item No.: 12. a <br />Department Approval City Manager Approval <br />Item Description: Consider Adopting a Final 2014 Tax Levy and Budget <br />1 BACKGROUND <br />2 State Statute requires all cities in excess of 2,500 in population, to adopt a final tax levy and budget by <br />3 December 30th for the upcoming fiscal year. The final levy amount must not exceed the preliminary <br />4 levy that was established in September. However, the Council has discretion in modifying the budget <br />at any time. <br />8 <br />7 At the September 9, 2013 City Council meeting, the Council adopted a 2014 preliminary, not -to- exceed <br />8 tax levy and budget. A summary is presented below. <br />9 <br />10 2014 Recommended Budget <br />11 The 2014 City Manager Recommended Budget for the tax - supported programs is $23,084,285, an <br />12 increase of $1,299,483 or 6.0 %. The increase includes $560,000 for the remaining debt obligations <br />13 associated with the Parks Renewal Program. It also includes $225,000 in additional capital funding that <br />14 was made possible by an appropriation of Local Government Aid. The LGA has been earmarked for <br />15 Information Technology ($75,000) and Building Replacement ($150,000) consistent with the <br />16 recommendations put forth by the previous CIP Subcommittee. Finally, it includes additional monies <br />17 for a new full -time Volunteer Coordinator position. <br />18 <br />19 The remaining funding increase is needed to maintain current programs and services that residents have <br />20 come to expect. This operating budget increase amounts to a 2.0% increase which is comparable to the <br />21 rate of inflation expected by most economic forecasts. Highlights of the recommended operating <br />zz budget increases for the tax - supported programs include the following: <br />23 <br />24 2014 Tax Levy Funded Increases <br />25 <br />Description <br />Amount <br />Implement 3.26% Compensation market adjustment <br />$1571190 <br />Implement add'1 market adjustment for selected employees <br />201000 <br />Add a Park Maintenance Operator position <br />601000 <br />Provide for additional Police overtime <br />101000 <br />Provide for Police New American Forums materials <br />11000 <br />Less Employee Wellness Program funding reduction <br />(20,000) <br />Suspend Merit Pay <br />(301000) <br />Unassigned <br />705 <br />Total <br />$1989895 <br />Page 1 of 5 <br />