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14 <br />MEMORANDUM <br />DATE: August 30, 2007 <br />TO: Mayor and City Council Members <br />FROM: Mike Morrison, City Manager <br />Roger Larson, Finance Director <br />ITEM: PROPOSED 2008 OPERATING BUDGET & PROPERTY TAX LEVY <br />The following is a review of the 2008 proposed General Operating Budget and Property <br />Tax Levy. The budget reflects a dollar increase of $226,700 or a 4.75% percentage <br />increase in last year's operating budget. <br />Issues impacting the 2008 budget include: <br />I ) Increased motor fuel costs. <br />2) Employer health insurance costs increased. <br />3) Cost of living adjustment for City Staff. <br />4) $30,000 added to the Police overtime budget. <br />5) Increased maintenance costs for City parks, equipment and vehicles. <br />6) Increased utility costs for City buildings. <br />Review of the General Tund Levy: <br />The proposed General Fund levy for 2008 totals $2,796,900. This represents a dollar <br />increase of $136,100 or a 5.12% percentage increase in last year's operating levy. This is <br />the number the Council discussed when reviewing the Financial Management Plan which <br />is one of the City Goals in 2007. <br />Road Improvements & Other levies: <br />In addition, as part of the Financial Management Plan, the following changes were made <br />to the levies. <br />1) The pay-off of the 1997A road improvement bond was subtracted from the road levy. <br />A. Total reduction = $54,106. <br />2) HRA Levy was increased by 55,000. <br />A. $25,000 for Salo Park Maintenance. <br />B. $30,000 for HRA Administration Costs. <br />hz addition, the Certificate of h7debtedness levy is no longer necessary. <br />