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2005 Preliminary Budget The proposed 2005 Budget and Tax levy was initially submitted for consideration in July. A Preliminary Budget was adopted by the Council on Septembler 13, 2004. Since that time, the Council has held a number of budget meetings whereby they agreed to modify the Preliminary Budget. Given that the Council has not yet made any fmal decisions, and to ensure continuity throughout tonight's TNT Hearing, these modifications have nlot yet been included in the figures presented below. The Preliminary 2005 Budget, approved in September of this pear, is $32,923,530(a), a decrease of $2,068,880 or 5.9°/o. The decrease is ]arg�3}� at�i��ta�l� r.a #1� completion of the City Hall renovation and �th�� ca�ital irnpE��m�rrts f�r wh«h or��-4imc m�ni es were used, and are no longer needed. The �rttbin�d b�dig�l f�r �h� ta�c-�u�r��d �u�� i� $]�,��,��, an increase of $106,605 or 0.8%. (a) The resolution adopting the 2005 Proposed Budget includec �TM amount of $33,323,530. The correct amount should have been $32,923,530 ($400,000 less) �`i will be reflected in the final Budgetresolution. The resolution adopting the Proposed Tax Le� was not affected. The budgeted increase in the tax-supported funds is affected by a variety of factors which include, but are not limited to: a) $200,000 increase for inflationary impacts b) $125,000 increase for added vehicle replacement chargAs c) $25,000 increase for the City's share of gym rental an�� operating costs at the Gymnastics Center These added costs were partially offset by the elimination of f�andin� for a custodial position, one maintenance position, and one FTE civilian position �i�k�� Police Department. The eliminationof these positions is incorporatedinto the Prelimiru�y I�ud��. Tax Levy and Tax Impact The proposed tax levy for 2005 is $10,761,015, an in�r�a�e of $1,000,341 or 103%. The increase is largely attributable to the spending ir�E�a�� n�t�d above, as well as the loss in state- aid of $500,000 (from a total of $700,000) that Y�ad ��4 �a b� �nc.c�r�r$�.ad into the budget. With the proposed tax levy and estimated increases in the ity's tax base, an average-valued home of $175,000 would see an increase of $19 or 4.7% in th ir local property taxes (holding all other factors constant). Assuming this same home experienoes a]�% valuation increase, the local property tax increase would be $63 or 15.1% in their ]�1 pEOpert�r taxes (holding all other factors constant). �