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REQUEST FOR COUNCIL ACTION <br /> Date: 9/08/2014 <br /> Item No.: 12.a <br />Department Approval City Manager Approval <br />Item Description: Adopt a Preliminary 2015 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 30 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 additional budget-related discussions will be held later this year leading up <br />5 <br />to the adoption of the final 2015 levy and budget on December 1st or December 8th. <br />6 <br />7 <br />The City Council received the 2015 City Manager Recommended Budget on July 14, 2014. This was <br />8 <br />followed by a budget hearing on August 11th and subsequent discussion on August 25th. A summary <br />9 <br />of the 2015 Recommended Tax Levy (as amended) is included in Attachment A. Staff will note that the <br />10 <br />format is somewhat different than the one distributed for discussion at the previous Council meeting. It <br />11 <br />has been modified to focus on the changes in the tax levy with more precision than previously <br />12 <br />displayed. <br />13 <br />14 <br />2015 Recommended Budget & Tax Levy (amended) <br />15 <br />The 2015 City Manager Recommended Budget is $52,345,290. The Budget for the tax-supported <br />16 <br />programs is $26,055,340, an increase of $1,332,055 or 5.4%. The 2015 Recommended Tax Levy <br />17 <br />required to fund the Budget is $18,834,550, an increase of $830,829 or 4.6%. <br />18 <br />19 <br />The impact on residents will vary depending on the property’s value and change in value relative to <br />20 <br />other properties in the city. The estimated impact for a typical single-family home that experiences an <br />21 <br />11% increase in value is shown below. <br />22 <br />23 <br />Estimated Tax Impact - Residential with 11.0% valuation increase <br />$ Increase% Increase <br />Value of Home20142015(Decrease)(Decrease) <br /> 166,500 670602 68 11.25% <br /> 188,700 759682 77 11.25% <br /> 215,340 866778 88 11.25% <br /> 230,880 928835 94 11.25% <br /> 251,970 1,013911 102 11.25% <br />24 <br />25 <br />Based on the Recommended Budget & Tax Levy, a median-valued home can expect to pay <br />26 <br />approximately $72.16 per month, an increase of $7.30 in 2015. <br />27 <br />Page 1 of 8 <br />