12-21-2016 Council Packet - Laserfiche WebLink

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STAFF REPORT TO: Mayor Keis and Members of City Council FROM: Joel Hanson, City Administrator Sharon Provos, Finance Director DATE: December 16, 2016 RE: 2017 Budget Adoption At Wednesday's meeting, we need to approve the 2017 Budget. In the attached budget document, a 2.88% increase in our gross levy is indicated per our discussion at the last Council Meeting. Attached to this memo are the levy sheets that show a 3.5% gross levy increase based on our preliminary levy certification. As you know, we cannot exceed that amount. We are aware the City Council prefers to keep the levy as low as possible, but it may be wise to keep the 3.5% levy increase we initially certified for the following reasons: • We could reduce our reliance on Local Government Aid in the General Fund by $18,474 pursuant consistent with the Council’s previously adopted goal. • By reducing the reliance on LGA in the General Fund, we would increase funding in the General Capital Improvement fund by the same amount. Infusing additional dollars in to that fund can help hold down future levy increases. • The additional levy dollars would provide a hedge to address possible increased costs for the new Park & Recreation Director hire given past budget reductions. • With the growth in our tax base, our rate still drops by almost 4%. • Our preliminary levy increase of 3.5% was well below the average Ramsey County municipal average of 7.3% Again, we respect the Council’s goal of keeping the levy increase as low as possible, but 2017 provides us with an opportunity that does not happen frequently. Staff will conduct a budget hearing presentation as has been done in past years. At the conclusion of the hearing, the City Council will need to consider the following actions: • Certification of the 2017 Property Tax Levies (based on 2.88% levy increase) General Fund $2,730,997 Fire Equipment Fund $143,027 Infrastructure Fund $157,200 GROSS TAX LEVY $3,031,224 • Approve the 2017 Capital Improvement Program • Approve 2017 Bonded Indebtedne ss Tax Levy Reduction totaling $201,334.28 GO 2008A Bonds $21,206.78 GO 2014A Bonds $180,127.50 • Adopt the 2017 Salary Scales (previously submitted under separate cover)