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19 City Council Study Session Minutes August 14, 2001 • Page 5 1 uncertainty within the budget, as revenue amounts are still coming in from the 2 Department of Revenue. 3 City Manager Mornson indicated the budget was incrementally increase for all services 4 offered in 2001 with no new services being proposed for 2002, as the property tax reform 5 would not allow for this. He noted staff recommends a budget in the amount of 6 $3,626,500 just $106,625 over the 2001 budget. 7 City Manager Mornson indicated no additional staff would be added at this time and he 8 reviewed all other items that would be eliminated or reduced over 2002. He noted he is 9 proposing a 3% increase in staff's income for 2002. 10 City Manager Mornson noted the City is limited to 10% of a tax levy per year at this 11 time. He stated that because HACA has been taken away from the cities a one time 12 increased tax levy is being allowed by the State. City Manager Mornson explained 13 property owners are to see a decrease in property taxes over 2002 but noted after 2002, 14 there is a greater level of uncertainty. 15 Councilmember Sparks asked why there was such uncertainty in 2003. City Manager 16 Mornson noted it was his understanding that the State would not be paying local portions • 17 of referendums so residents of the community would be responsible for 100%of 18 referendums. He indicated this would greatly affect local property taxes. 19 City Manager Mornson indicated he feels numerous cities are going to gain negative 20 press for the increase in the tax levy even though revenues have been decreased. He 21 reviewed the fire, police, utility, park and city hall budgets for 2002. City Manager 22 Mornson reviewed several options for the Council to use current cash available to pay for 23 capital projects in 2002. He indicated this decision does not have to made at this time, 24 but noted this money could be made available for future projects. 25 City Manager Mornson stated the future of the Stonehouse would need to be made. He 26 reviewed a letter from the Finance Director with regard to Truth in Taxation hearings. 27 City Manager Mornson stated it was the wishes of the Mayor to hold some form of a 28 public hearing for the public to review the budget and make comments. 29 City Manager Mornson noted August 28`h_Would be the next budget meeting. He then 30 reviewed the goals of the City staff for 2001 and noted they were on track. City Manager 31 Mornson reviewed the General Fund Budget amount for 2002 being $3,626,500 a 3.03% 32 increase over 2001, with the Tax Levy of$2,202,354, a 24.89% increase. 33 City Manager Mornson reviewed the decreases in intergovernmental revenues and noted 34 how expenditures were panning out for 2002. He stated roughly 61% of the General • 35 Fund revenues were from the tax levy with police taking roughly 29.4% of the 36 expenditures. City Manager Mornson compared the revenues from 2001 with regard to 37 funds available for 2002. He indicated the expenditures between the two years were