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• MEMORANDUM DATE: September 5, 1996 TO: Mike Mornson, City Manager FROM: Roger Larson, Finance Director ITEM: RESOLUTION SETTING PROPOSED 1997 LEVY - Truth in Taxation Laws requires the City of St. Anthony to approve the 1997 proposed tax levy, budget, and set public hearing dates, by September 15th of each year. To comply with the law; resolution #96-051 has been prepared and placed on the September 10th agenda for Council's consent. Per your direction, staff prepared the 1997 proposed budget with the.goal to achieve a zero increase in the tax rate. To accomplish our objective, the process is best looked at as a five step process. • (Step #1) As part of the auditing process, Council designated $124,000 for budget/levy reductions from last year's reserves (monies derived from tax dollars). (Step #2) Preparation of the proposed budget included most budget line items being held at last year's budget with the exception of salaries and inflationary increases to utility costs. (Step #3) Setting the proposed 1997 levy equal to the amount levied in 1996 requires the transfer of $53,713 of the designated reserves.- For review, I have attached. an updated report which indicates current reserves for "Funding for Zero Dollar Tax Increase." (Step #4) The proposed tax rate for 1997 and the impact of the levy will be evaluated at the October work session. Once we establish a levy, Hennepin County starts the process of combining Ramsey and Hennepin evaluations to calculate a projected tax rate. In addition, at this meeting we • should be able to determine if staff anticipates any adjustments or further use of the designated reserves to equal last year's tax rate.