09-11-2024 Workshop Packet - Laserfiche WebLink

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STAFF REPORT TO: Mayor Fischer and Members of City Council FROM: Sam Magureanu, Finance Director REVIEWED BY: Chris Heineman, City Administrator DATE: September 11, 2024, City Council Workshop RE: 2025 Preliminary Levy REQUESTED ACTION: This is a discussion item only, and no action is required. The Council is asked to provide additional feedback on the revised preliminary levy of 9.51% as presented below. BACKGROUND: The City of Little Canada is required to establish a preliminary levy by September 30 th. The preliminary levy may be decreased before the final adoption in December, but it may not be increased. A preliminary levy and general fund budget in more detail was presented at City Council workshops on August 14th and on August 28th. This presentation is intended to focus primarily on the community impact of the budget and strategies to reduce the levy rather than presenting again the details of the budget. A copy of the staff report from the August 18th and August 28th where the budget was discussed in more detail is included as attachments to this staff report. 2025 Proposed Levy: The City Council reviewed last the preliminary budget and operating levy for 2025 at the budget workshop held on August 28th, 2024. At the workshop, staff presented a proposed increase to the operating levy of $428,308 which represents an increase of 9.37% over the adopted 2024 budget. Since the August 28th meeting there has been one change to the final preliminary proposed budget. A cost-of-living adjustment (COLA) of 3.2% is used rather than a 3% as presented at the August 14 th and August 28th workshop meetings. The levy impact from a 3% COLA to a 3.2% COLA is $6,591.