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MIN E <br />REQUEST FOR COUNCIL ACTION <br />Department Approval <br />Item Description: Finalize the 2010 Budget and Property Tax Levy <br />1 BACKGROUND <br />Date: 11/23/09 <br />Item No.: 10.a <br />City Manager Approval <br />2 Over the past several months, the City Council has nearly 20 separate discussions regarding the 2010 <br />Budget and Property Tax Levy. These discussions culminated in a public hearing held on November 16th <br />i{ for the purposes of soliciting public comment on the Recommended Budget. <br />r. On December 7, 2009 the City will conduct its annual Truth -in -Taxation Hearing. At this meeting, City <br />Staff will be presenting an overview of the proposed budget and taxpayer impacts. In preparation for this <br />meeting, the Council is asked to make final decisions on the Budget and Tax Levy so the citizens can <br />receive an accurate portrayal of what to expect. The Budget that remains intact at the conclusion of <br />0 tonight's meeting will be the one presented at the hearing. <br />2 While it has been especially challenging to develop a budget in the current economic downturn, the Council <br />and Citizens are reminded that the City is on an unsustainable financial path. With regard to the City's <br />i{ property tax -supported programs and services, we have relied on cash reserves to plug budget gaps 7 out of <br />u the last 8 years. In addition, the City's own 10 -year Capital Investment Plan demonstrates that the City is <br />r. millions of dollars behind in funding vehicle, equipment, and other capital replacements. Finally, for 2010 <br />the City is faced with unprecedented declines in state aid, interest earnings, and other non -tax revenue <br />a sources — a combined loss of $700,000 next year alone. <br />20 Because of these financial realities, the City must accept significant tax levy increases and/or permanent <br />2 � reductions in programs and service levels. It is simply too late to wait for better times to fix what's broken. <br />>> <br />23 It should be noted, that the City has already made a number of permanent budget reductions in prior years. <br />2/1 The following table depicts just some of the operational changes made since 2003. <br />Page 1 of 2 <br />