08/18/2008 Council Packet - Laserfiche WebLink

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• • • Memorandum To: Mayor and Council Members From: Al Rolek Date: August 11, 2008 Re: 2009 Proposed Budget Transmitted herewith for your review is the proposed 2009 Budget. The budget work session is scheduled for Monday, August 18, 2008, at 5:30 p.m. Staff s goals in preparing the budget were to maintain current service levels to our citizens, ensure each department has adequate resources to perform their functions, provide resources for maintaining local streets and storm drainage, provide for the replacement of worn equipment, complete and implement the update of the comprehensive plan and provide a small contingency for unforeseen circumstances that may arise throughout the year while maintaining a level or lower tax rate. Staff takes seriously its responsibility to present a budget that represents the needs of the community and is fiscally responsible to our taxpayers. Significant challenges faced staff in working through the budget process this year. The slow economy, slow tax base growth, ailing housing market and the precipitous decline in building activity, continually rising energy costs and the re- introduction of levy limits all provided considerable obstacles to the preparation of the 2009 budget. Proposed expenditures increased 1.54% from the 2008 budget. The city's tax base over the last year grew by an estimated 3.7 %. About 58% of the increase is from new construction and remainder is from market adjustments. The city's total levy is proposed to increase by 3.4 %. This percentage includes our MVHC from the state. The tax rate is estimated to be reduced from 38.967% to approximately 38.787% (This figure is based upon levy limit calculations and valuation figures that were estimated by staff. Information is not available at this time from the Department of Revenue or Anoka County to calculate a more accurate figure).