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• • • Budget WS -1 WORK SESSION MEMORANDUM To: City Council From: Al Rolek Date: September 6, 2006 Re: Budget Work Session Item — 2007 Proposed Budget and Tax Levy cc: Attached is the listing of the collective City Council adjustments to the 2007 Proposed Budget that was agreed upon on August 28. The adjustments would reduce the budget and levy by $339,872 An additional levy reduction estimated at $30,000 would be realized upon the refunding of the EDA Lease Revenue Bonds, for a total levy reduction of $369,872. This lowers the increase in the budget from 15.58% to 11.98% as shown in the middle section of the adjustments page. Finally, the tax rate would be reduced from the presently proposed 41.880% to 39.965 %, down from the 2006 tax rate of 41.362 %. Also attached is a listing of the resulting tax impacts on various market value levels of homestead property and a comparative page for 2006 tax impacts. As shown on the listing, city property taxes for all levels of property would decrease by 3.38% if the property value remained the same from 2006 to 2007. This compares with a decrease of 2.04% under the same scenario from 2005 to 2006. Considering an 8% increase in property value for 2007, city taxes would increase by 4.35% for all property value levels. This compares with an increase of 5.80% under the same scenario from 2005 to 2006. For your information I have attached an updated compilation of the Council's and staffs original adjustment recommendations. I look forward to discussing and finalizing these adjustments on Wednesday evening in preparation for adopting a preliminary budget and tax levy at the regular September 11 meeting. Page 1