09-05-1983 Council Agenda - Laserfiche WebLink

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Joe Chlebeck September 23, 1983 Page 2 Levies for Proposed #1 reflect a $69,962 increase over 1982/1983 (i.e. $697,300 versus $767,262). This represents a 10% increase over 1982/1983. This 10% increase is substantially the result of the 1983 Bond Issue and the $49,000 scheduled tax levy to finance the 1983 Equipment Certificate. This Equipment Certificate was necessitated by the City's commitment to finance the Senior Citizen Project - Land Acquisition at $140,000. The major increase in the total tax levy under Proposed #1 is caused by the new State Levy Limit Formula and the decreased State aids for 1984. This increase totals $153,829 or 69% of the total increase of Proposed #1. The Proposed #1 tax levy would result in approximately 26 mills for the City for 1984 or a 17% increase in the mill rate. Even though this increase is primarily the result of State Statutes and decreased State financing of local government, I do not think the City Council would appreciate a repeat of the 1983 "press ". Accordingly, we have reviewed and analyzed the City's Special Assessment Debt further. The Debt Study concluded that the City's Special Assessment Debt Funds were in an overall sound projected financial position. That Study also gave us addi- tional data to compare to actual operations. We have used this additional data to decrease the proposed City tax levy for 1983/1984 to a more reasonable level. Our initial plan was to increase tax levies on the 1966 and 1967 Bonds by approximately $25,000 to $30,000 or an amount equivalent to the decreased tax levies for the 1976, 1978 and 1978 Refunding Bonds. This would have the effect of providing the required additional financing for the 1966 and 1967 Bonds without increasing overall Special Assessment Tax Levies. The Debt Study projections (used for planning purposes) were based upon a 7% investment yield and a 95% collection rate for currently collectible special assessments. Actual transactions for 1982 (for the 1966 and 1967 Bonds) reflect a $30,000 improvement over the projections. This improvement was the result of: 1. City collection of special deferred assessments (i.e. no scheduled collection term) $ 14,500 2. Cash connection charges 6,000 3. Interest earnings above a 7% yield 9,300 4. Other improvments - net 200 Total $ 30,000 The above improvement (which is an actual improvement as apposed to a projected improvement) means that the City will not have to levy the planned $25,000 or $30,000 of additional levies for the 1966 and 1967 bonds. Alternatively, the City can still reduce the scheduled tax levies for the 1976, 1978 and 1978 Refunding Bonds by $29,062 in accordance with the Debt Study recommendation. 002