09-03-13 Council Packet - Laserfiche WebLink

Home Search

WS –Item 9 WORK SESSION STAFF REPORT Work Session Item Date: September 3, 2013 To: City Council From: Al Rolek Re: 2014 Draft Budget Review Background The City Council last reviewed the draft 2014budget at its August work session. Since that time staff has continued to review and refine the draft budget and tax levy. A review of Xcel charges for the Civic Complex for 2013 has resulted in a sizable credit for the current budget year. This has lead to an adjustment to the 2014 draft budget, lowering the electricity budget by $30,000. Additionally,Anoka Countyhas certifiedthe final debt service levies for 2014 which showsreduced levy needs for the 2006C issue and the 2012A issue totaling$15,285. If the Council chooses to reduce the overall levy resulting fromthese adjustments the amount of reduction would be $45,285, bringing the total levy to $8,296,044. The Council may alternately want to consider adding part or all of the budget adjustment to the 2014 Contingency or to another area of the budget. The tax levy as presentedis $80,416 over the 2012/13 Tax Levy; however, the voter-approved levy for the intersection signalization project, which is first being levied in2014, is $174,943. Withoutthe addition of the voter-approved levy, the year-over-year tax levy would be reduced by $94,827.The Council should also be aware that general fund reserves and other one-time financing sources totaling $287,603 are included in the budget draft. These resources may not be available for future budget periods. The MN Department of Revenue has reported the preliminary levy limit for 2013/14 in the amount of $8,227,259. The amount of the city’s preliminary 2013/14 tax levy, as presented, subject to the levy limit is $7,098,922, leaving the city’s levy$1,128,337 below the limit. The Council will also need to consider a date and time in December for holding a public hearing on the Final 2014 Budget and 2013/14 Tax Levy. This has traditionally been held on at the first regular meeting in December. Staff is recommending the same for this year, which will fall on December 9, 2013.