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MEMORANDUM <br />DATE: July 12, 2010 <br />TO: City Council <br />FROM: Mike Mornson, City Manager <br />Roger Larson, Finance Director <br />ITEM: GENERAL FUND BUDGET/LEVY <br />At the May 3rd work session, the City Council and Staff discussed the preparation of the <br />2011 General Operating Budget. The consensus from the Council included: <br />1) O% increase in General Operating Levy. <br />2) Appropriation of Revenues to General Fund. <br />a. Bell Lane Clean-up $ 22,347 <br />b. Clearwire Lease $ 24,000 <br />c. 2009 Budget/Reserves 84,931 <br />$131,278 <br />3) 2% salary increase. <br />4) A $100 increase in the employer health insurance contribution. <br />5) All other line items will remain the same as 2010. <br />Based on these parameters, Staff prepared for Council a "Draft Copy" of the 2011 <br />General Operating Budget totaling $5,478,000. This represents a $194,600 dollar or <br />3.68% increase. <br />Other considerations would include: <br />1) Whenever possible, Staff will continue to seek Grants and Donations from <br />private sources to help offset the cost of operations and capital equipment. <br />2) 2011 is the final year of State mandated Levy Limits: <br />a. Potential does exist for them to be extended. <br />b. Based on current law the City could increase the General Operating <br />Levy by an estimated $64,000. In 2010, the City levied $37,040 less <br />than the levy limit and it is anticipated in 2011 the levy limit would <br />increased by approximately the same dollar amount. <br />3) Attached is an Excel spread sheet that summarizes the 2011 levies and <br />compares them to 2010: <br />a. The General Fund Property Tax Levy remains at $2,945,511 and <br />represents a 0% increase. <br />b. To offset the impact of Emerald Park, the Road Improvement Levy is <br />reduced by allocating $68,808.82 from the Chandler TIF District. <br />