12/05/2011 Council Packet - Laserfiche WebLink

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• • CITY, +f " IN• KE WORK SESSION MEMORANDUM To: City Council From: Al Rolek Date: December 5, 2011 Re: Final Review of 2012 Proposed Budget cc: WS -6 Included in your work session packet is a final draft of the 2012 proposed budget. Since the last review of the budget in September, a number of changes have been made to the draft. A Citizen Corp. Program grant was incorporated into the budget, enabling the status change for the Police Community Relations Coordinator from 7/8 time to full time for 2012. The final quotes for employee health coverage came in at a 5% decrease in rates for 2012, creating a reduction in total expenditures in excess of $56,000. This amount has been added to Contingency pending the outcome of the Council's discussion tonight. The net result is a general fund budget of $9,199,419, a 2.54% reduction from 2011. The water and sewer budgets and program recreation budgets, which are included in the packet, will also be reviewed with the Council. The proposed tax levy is the same as approved by the City Council in September. The $8,227,259 levy is a 5% reduction from the levy approved for 2011. Changes in the city's tax base over the last year, including the elimination of the Market Value Homestead Credit (MVHC) and the implementation of the Market Value Exclusion (MVE), result in a tax rate for 2012 of 42.778. This is just slightly higher than the current tax rate of 42.042, again the result of the elimination of the MVHC. The public hearing on the 2012 budget and tax levy is scheduled for the December 12 Council meeting. Following the public hearing Council will consider the adoption of the Final 2012 Budget and tax levy.