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M <br />MEMORANDUM <br />DATE: August 25, 2005 <br />TO: City Council <br />FROM: Mike Mornson, City Manager <br />Roger Larson, Finance Director <br />ITEM: FINANCIAL PLANT - PROPERTY TAXES 2006 <br />At our January 2005 goal setting, the City Council asked staff to develop afinancial plan <br />to review alternatives to offset the impact of the 2006 tax levy. Those alternatives were <br />presented to Council at the March 14°' work session (further reviewed by Council at its <br />August I" work session). <br />At those meetings, Council established a goal to balance the 2.006 -operating budget <br />without increasing the 2006 levy. Resolution 805-072 as presented to Council represents <br />the funds necessary to balance, the 2006 -operating budget without an increase to the <br />general fund levy for 2006. <br />The proposed 2006 budget of $4,177,500 includes an anticipated 3.5% increase in <br />employee wages, increased pension contributions (State Approved) and other related <br />benefits, a $35.00 increase in the employer health insurance contribution and additional. <br />costs for motor fuel, utilities and inflation. <br />®ifsetZirt� Zlze Irnr�act wiRhouf increasiwz� Plae levy <br />1) New Line Items were added: <br />y- Liquor Licenses <br />Communications Lease <br />$24,000 <br />$14,000 <br />2) Some of our current capital equipment revenue line items were restructured and <br />transferred to the general fund. They included: <br />➢ Water/Sewer Transfer $60,000 <br />Water Filtration Interest $50,000 <br />Lauderdale/FalconIIeights $36,100 <br />These sources of revenue are considered permanent revenues that are available each year. <br />The transfer of the line items represents a permanent restructure of the annual General <br />Fund Budget operating revenues. <br />