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'~~4F:?~I:£ <br />REQUEST FOR COUNCIL ACTION <br />Date: 9!13!2010 <br />Item No.: 12 , g <br />Department Approval City Manager Approval <br />~~~~ ,~ <br />Item Description: Adopt a Preliminary 2011 Tax Levy and Budget <br />BACKGROUND <br />State Statute requires all cities in excess of 2,500 in population, to adopt apreliminary tax levy andbudget <br />by September 15U`forthe upcoming fiscal year. Once the preliminary levy is adoptedit can be lowered, but <br />notincreased. Furtherdiscussion alorlgwiththe adoption of the Fina120111evy andbudgetis scheduledto <br />take place on December 6, 2010. <br />Recommended Tax Levv <br />The 2011 City Manager Recommended Tax Levy is $15,039,419, an increase of $757,015 or 5.3% over <br />2010. The increase in the levy is necessitated by a number of operational and capital needs as well as the <br />loss ofnon-tax revenues. The new tax levy dollars are tentatively earmarked for the following: <br />s <br />10 <br />11 <br />12 <br />13 <br />14 <br />15 <br />16 <br />17 <br />18 <br />19 <br />zo <br />21 <br />zz <br />23 <br />za <br />zfi <br />zs <br />z7 <br />za <br />2s <br />30 <br />,1 <br />$ 25,000 Replace revenue reduction in market value homestead credit aid <br />218,660 Replace revenue reduction in interest earnings, court fines, other state aids, and <br />surplus moniesfrom the License Center <br />100,000 New program: Emerald Ash Borer <br />165,000 New program: Code Enforcement (previously funded with building permits) <br />62,000 Contractual obligations (dispatch, legal, audit, etc.) <br />236,375 Capital improvements and equipment purchases <br />195,910 1% employee COLA and step increases <br />213,200 PERA and Healthcare increases <br />36,000 Temporarylseasonal wages (parks &recreation, fire) <br />37,000 Supplies & materials <br />35,870 Contract maintenance andprofessional services <br />(78,000) Less reduced Fire Relief pension obligation <br />49( 0.000) Less reduced debt service obligations <br />$ 757,015 Net tax levy increase <br />Taxaaver Imaact <br />For amedian-valuedhome of $223,900 that experiences aprojected 5% decline in assessed marketvalue, <br />the 2011 city taxes will be $640, an annual increase of $24 or $2 per month. In exchange, residents will <br />receive round-the-clock police and fire protection, well-maintained streets and parks, and continued <br />emphasis on enforcement of the City's Housing Code. In addition, a larger investment will be made to <br />replace the City's aging infrastructure and equipment. Finally, the City will take the responsible measure of <br />