07-14-14 Council Packet - Laserfiche WebLink

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intersections, as well as debt levies of $264,458 for the City's participation with the YMCA and $449,820 for the Civic Complex project. Debt financing of capital equipment has increased the levy this purpose by $134,577 in 2015. A reduction in the debt levy of $155,782 is realized by the retirement of the 2005B Improvement Bond issue. Under the draft budget the projected tax capacity rate would increase to 49.225% from 46.665% in 2014. To maintain the 2014 tax rate the levy would need to be reduced by $437,034. Levy Limits. There is no state mandated levy limit for 2015. The State Legislature had imposed a levy limit on counties and cities over 2,500 population for 2014. The levy limit was scheduled to expire after the 2013/14 levy year. The State Legislature took no action during the last session to extend levy limits beyond the end of 2014. Discussion. Staff is ready to discuss the budget draft with the Council during the initial budget work session. Attached to the draft budget is a gap analysis broken down in three areas: 1) adjustments to maintain the current service level, 2) the amount identified for fire department startup and 3) the additional requests by city management. It must be noted that because 2015 is a crossover year for fire operations, the city's operating cost for this service will be higher than in past years. This is a one-time occurrence. The fire service costs will be reduced in excess of $500,000 in ensuing years when the city's contributions to the Centennial Fire District cease. Budget work sessions may be scheduled at the discretion of the Council to achieve the desired budget level for 2015. The Council action is anticipated at the September 8 meeting on the preliminary tax levy and to set a public hearing date in December on the budget and tax levy. The preliminary levy set at this meeting may not be increased thereafter, but may be lowered before approving a final levy in December. Requested Council Direction Staff is seeking direction from the City Council on service levels and service areas that may be affected. Staff can then make recommendations on how best to cost-effectively deliver the desired services. Attachments 2015 General Fund Forecast Gap Analysis Staff Reports on Requested Personnel Increases 2015 Draft General Fund Operating Budget