08/15/2007 Council Packet - Laserfiche WebLink

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drainage system. This funding will be replaced if and when a storm water utility is implemented. The comprehensive plan update was begun in 2007 following visioning process. Resources are included in the proposed budget to complete this process. Also included in the proposed budget is funding for the annual City Council goal setting session. Tax abatements have been included in the budget and levy for Target and Kohl's. This is the final year of a five -year commitment for Target and Kohl's. Since the city's commitment has been paid faster than expected, the final year abatement is be significantly less than in prior years. In addition, we will begin abatements in 2008 to finance our debt service for the YMCA commitment. The budget as proposed for 2008 is $10,086,236, a 4.96% increase from the 2007 budget. The city's tax base over the last year grew by 4.81 %. About 25% of the increase is from new construction and remainder is from market adjustments. The city's total levy is proposed to increase by 4.85 %. This percentage includes our MVHC from the state. The tax rate is estimated to go from 38.994% to approximately 38.991% (This is an estimate based upon a number of factors that were also estimated. Adequate information is not available at this time to calculate a more accurate figure.). Because much of the tax base increase is market- driven, it is expected that the city portion of a property tax bill will increase approximately 4.79 %. Much of the increase pertains to needed capital outlay and to goal - oriented expenditures. A property valued at $300,000 will pay less in city taxes in 2008 than a property of that value paid in 1997 and in every year since then. While the proposed budget may result in a slight property tax increase for some properties, the tax rate is maintained and, in fact, reduced slightly from 2007. Staff feels that the budget presented fulfills most needs of the community and is fiscally responsible to our taxpayers. Please review the budget and note your comments and questions you would like to discuss. The directors will be available to address your questions on their departmental budgets. Should you have any questions that would involve any research prior to the approval of the proposed budget and preliminary levy in September, please call me so that I may do the necessary legwork to ensure an informed discussion. Cc: City Administrator Directors • • •