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Tax Levy and Tax Impact The proposed tax levy for 2005 is $10,761,015, an increase of $1,000,341 or 10.3%. The increase is largely attributable to the spending increases noted above, as well as the loss in state- aid of $500,000 (from a total of $700,000) that had yet to be incorporated into the budget. With the proposed tax levy and estimated increases in the City's t�x base, an average-valued home of $175,000 would see an increase of $19 or 4.7% in their local property taxes (holding all other factors constant). Assuming this same home experiences a 10% valuation increase, the local property tax increase would be $63 or 15.1% in their local property taxes (holding all other factors constant). Subsequent Budget Actions Subsequent to the Council adopting a Preliminary 2005 Budget and Tax Levy in September, a number of budget action items were tentatively accepted by a majority of the Council. In addition, new information was shared as it became available. These items as it pertains to the property tax levy are shown below. `Tax Levy adopted on 9/13/04 Less savings from revised healthcare estimates Less savings from the elimination of Skidsteer loader Less savings from the elimination of Council goal-setting Less savings from the elimination of NLC Conferences Plus the addition of a snowplow attachment Revised Tax Levy $ $ 10,761,015 ��,�) (55,000) (5,000) (4,050) 3,000 10,669,965 Based upon subsequent budget actions and new information, the revised 2005 Property Tax Levy could be reduced to $10,669,965, a reduction of $91,OSOfrom the proposed amount. Final Budget Considerations The 2005 Budget reflects the 3"� consecutive year of cuts to tax-supported programs and services. What little discretionary spending that had been available, was eliminated in previous years. In order to achieve structural budget balance for 2005, staffing reductions are necessary. As revised, the 2005 Budget and T� levy includes the elimination of the following positions: �) One full-time custodial position as of 1/31/OS 2) One full-time equivalent civilian position (2 CSO's and 1 Cadet) within the Police Department as of 6/30/OS 3) One full-time maintenance position as of 1/31/OS The Council is reminded that these staffreductions follow two positions that were eliminated the previous year. The Council is also reminded that the restoration of funding for any of these positions will require an equal amount of t� levy dollars. For example, restoring the maintenance position requires an additional $50,000. Therefore, the revised tax levy shown in the above schedule would need to be raised fr�rrt $10,669,965 to $10,719,965.