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Department Approval <br />�� ,�: �� <br />Item Description <br />l�'�, <br />Jy <br />REQUEST FOR COUNCIL ACTION <br />Finalize the 2010 Sudget and Property Tax Levy <br />Date: 12/7/09 <br />Item No.: 10.a <br />City Manager Approval <br />� / <br />BACKGROUND <br />Over the past several months, the City Council has held nearly 20 separate discussions regarding the 2010 <br />Sudget and Property T� Levy. These discussions culminated in a public hearing held on November 16tn <br />for the purposes of soliciting public comment on the Recommended Sudget. <br />On December 7, 2009 the City will conduct its annual Truth-in-T�ation Hearing. At this meeting, City <br />Staff will be presenting an overview of the proposed budget and t�payer impacts. <br />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 />property t�-supported programs and services, we have relied on cash reserves to plug budget gaps 7 out of <br />the last 8 years. In addition, the City's own 10-year Capital Investment Plan demonstrates that the City is <br />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-t� revenue <br />sources — a combined loss of $700,000 next year alone. <br />Secause of these financial realities, the City must accept significant t� levy increases and/or permanent <br />reductions in programs and service levels. It is simply too late to wait for better times to fix what's broken. <br />It should be noted, that the City has already made a number of permanent budget reductions in prior years. <br />The following table depicts just some of the operational changes made since 2003. <br />Page 1 of 3 <br />