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29 MEMORANDUM DATE: December 7, 2004 TO: Mayor and Councilmembers FROM: Mike Morrison, City Manager ITEM: CERTIFICATION - 2005 BUDGET AND TAX LEVY State mandated truth in taxation laws require Cities to provide Hennepin and Ramsey Counties with a certified 2005 Budget and Tax Levy. This years General Fund budget totals $3,969,000 compared to $3,776,400 for 2004, which represents a$192,600 dollar increase. It should be noted that the 2005 budget consists of no new staff positions, a 2% increase in personnel costs, a$30.00 increase in the employer health insurance contribution, new line items for the Central Park ball field lights and Community Services transfer and inflationary line item adjustments for increased costs. A breakdown of the increased cost in the 2005 Budget includes: 1) Personnel Costs $ 80,400 2) Park Lighting Costs $ 20,000 3) Community Services Transfer $ 54,000 4) Line Item Adjustments $ 38,200 $192,600 The General Fund Levy for 2005 totals $2,488,357 compared to $2,329,036 in 2004. This represents a$159,321 dollar increase from last years levy. The City portion for a property with a taxable value of$221,000 is equal to $1,024.96 (represents an increase of$71.90 from 2004). When looking at a breakdown of the 2005 taxes payable, the General Fund costs increased an average of $29.50 and Road Improvements increased$45.18. All other taxes paid remained at or near the amount paid in 2004. A breakdown of the 2005 City portion of property taxes paid include: 2005 Taxes Increase 1) General Fund Budget $ 701.79 $ 29.50 3) Road Improvements $ 176.90 $ 45.18 4) Public Facilities $ 110.39 ($ 3.69) 5) Certificate/Fire Truck $ 25.31 $ .63 6) Tax Abatement $ 8.31 $ .43 7) PERA Rate Increase $ 2.06 ($ .15) Total $1,024.96 $ 71.90 Capital equipment purchases for 2005 total $193,800, which represents items being purchased that are deemed as "essential to operations."