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Truth-in-Tazation Hearing and Regular City Council Meeting Monday, December 03, 2007 Page 2 Mayor Klausing encouraged Councilmember Kough, along with other Councilmembers, to follow up with City Manager Malinen and Finance Director Miller to make sure indi- vidual suggestions had been addressed and considered by the full Council prior to the December 17, 2007 meeting. Mr. Miller provided a Power Point presentation of the 2008 Preliminary Budget, includ- ing budget priorities; budget impact items; budget highlights; proposed tax levy increase of $1.2 million, representing a 10.3% increase over 2007, mostly attributed to personnel- related costs; insurance premiums; general facility repairs and pathways; information sys- tems; strengthening asset and capital replacements; increased motor fuel and energy costs; increases in supplies and contract maintenance; and moving toward compliance with city fiscal and budget policies; and a contingency fund to begin enacting initiatives from the Imagine Roseville 2025 community visioning process. Mr. Miller provided a breakdown of tax supported functions; budget categories; funding sources; and impacts to average value properties. Mr. Miller noted that administrative costs represented approximately 10% of the City's budget, with 90% of tax monies going toward core services. Mr. Miller noted that 40% of the City's budget went toward per- sonnel services, common for service sector-related businesses. In reviewing funding sources, Mr. Miller noted that property taxes represented 36% of all revenues, with the remainder funded through fees, licenses, State Aid funds, internal charges, and interest earnings on the City's approximate $1.3 million in reserve funds. In conclusion, Mr. Miller provided comparison information with metro-area cities with populations between 25,000 - 45,000; and local tax rate comparisons from 1995 - 2007. Mr. Miller advised that all residents had been noticed by mail through Ramsey County of the City's Public Hearing scheduled for this evening, based on preliminary levy and budget information provided by the City. Councilmember Ihlan questioned if the proposed 10.3% tax levy increase included the Housing and Redevelopment Authority (HRA) levy. Mr. Miller advised that this hearing was only addressing the City portion; that the HRA portion was a separate levy. Councilmember Ihlan asked for the projected total, including the HRA levy. While specific percentages were not immediately available, Mr. Miller estimated that in- cluding the HRA levy would increase average property taxes for single-family home- owners by approximately $5 - 8 annually. Mayor Klausing called to order the Truth-in-Taxation Hearing at 6:00 p.m.