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Ietter of Transmittal Septett�er 10, 1979 The Honorable Mayor and City Council, Submitted herewith is the proposed 1980 annual budget. INTRODUCPION Following is a discussion of the proposed 1980 annual budget. This discussion is divided into four major areas; Levy and Mil1 Rate, Assessed Valuation, Revenue, and �nditures. It is the intent of this letter to give a broad overview of the budget with significant changes from the previous year noted. ' In general, the 1980 budget reflects the projected in£lationary farces over the next 16 to 18 ironths. There are no significant changes in programs or levels of service with the exception of the Liquor Store operation cdiZich has decreased. Nonetheless the tax levy requireirents ' of this budget will increase approximately 8.8o in 1980. The inflationary causes of this increase are apparent. In 1970, the total budget was approximately $5.27 million with a tax levy of $1.46 million. By 1975, these figures were $7.09 million and $1.74 million. In 1979, these same figures were $9.09 million and $2.58 million. When these figures are adjusted for inflation, hcxaever, there is a 7.20 decrease in the total budget from $5.27 million to $4.89 million and a 4.8% decrease in the tax levy from $1.46 million to $1.39 million between 1970 and 1979. Of course, there is no way of projecting the effects of inflation in 1980, but there is certainly no clear indication the up- ward tsend will abate. I,E'�7Y �ID MII.L RATE The 1980 proposed budget will require a t-�c levy of $2,803,741 co�ared to the current year levy of $2,576,833. The proposed $226,908 increase is 8.80 over 1979. With this levy and the changes in the property tax computations, discussed below, it is estimated that the required mill rate will be 13.14 mills which co�ares to 13.72 mills in 1979. ASSESSED VALUATION The assessed valuation for Rpseville as of June 7, 1979, is estimated at $213,341,582. This compares to a 1978 valuation of $187,958,406 which is a$25,283,176, or 13.5o increase. Zhe 1979 valuation includes estimated adjust�nents caused by fiscal disparities. This co�ares to a 22.2% increase in Limited Market Values. The primaxy reason for the dif£erence between the increase in assessed valuation and Limited Market Ualues is the recent court ruling declaring the concept of Limited P7arket Values unconstitutional. To coicq�ly with