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LAUDERDALE COUNCIL ACTION FO' Action Requested Consent Public Hearing Discussion X Action Resolution Work Session Meeting Date August 22, 2017 ITEM NUMBER STAFF INITIAL 2018 Budget and Levy APPROVED BY ADMINISTRATOR DESCRIPTION OF ISSUE AND PAST CO CIL ACTION: First of all, please let staff know if you would like to meet to go over the budget in greater detail or learn more about how the numbers are derived. Following is the first complete draft budget. You will notice small changes in many of the numbers as staff review it in greater detail. This draft shows the budget balancing with a local levy increase of 9.8% or $56,833 or a total levy increase of 8.1% or $57,181, The overall budget increase is $51,900 or 3.9%. Last year, the fiscal disparities revenue increase of about $15,000 brought down the overall levy increase. Unfortunately, we do not have that to rely on this year as the increase was $348. There are a couple of factors driving the increase this year. • Public safety costs: Additional S16,000 • 2018 is an election year: Additional $6,000 • Internet was previously free: Additional S6,000 Following is the impact of the proposed levy on a low value home ($126,000), a median val- ue home which is S189,100 for 2018, and a high value home (S300,000). Staff factored in the market value homestead reduction at each of those price points. Included is a handout from the Department of Revenue if you would like to learn more about those calculations. If adopted as presented, the impact of the city's levy would be minimal as property tax shifts are still in play. For the upcoming year, a handful of suburbs and St. Paul are seeing sizable home value increases so they will absorb a greater share of the County's 4.3% levy increase. You will see from the County's handout that without a change in our levy, residents would see a S43 decrease on their property tax statement. The impact of the 9.8% local levy in- crease calculates to less than a $35 increase on homes valued at less than S300,000. Based on the feedback, staff will prepare additional calculations for Council consideration at the next meeting. Adoption of the levy will occur at the September 26 council meeting. As you may recall, the final levy adopted in December may be less than the preliminary levy but not more. STAFF COMMENDATION: