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50 <br />MEMORANDUM <br />DATE: September 4, 2008 <br />TO: Mayor and City Council Members <br />FROM: Mike Morrison, City Manager <br />Roger Larson, Finance Director <br />ITEM: PROPOSED 2009 OPERATING BUDGET & PROPERTY TAX LEVY <br />The following is a review of the 2009 Proposed General Operating Budget and Property <br />Tax Levy. The budget reflects a dollar increase of $278,800 or a percentage increase of <br />5.58% from last year's operating budget. <br />.Issues impacting the 2009 budget include: <br />1) Cost of living adjustment for City Staff (3.5%). <br />2) Employer health insurance costs increased. <br />3) Final 1/3 cost for the hiring a new police officer ($30,000). <br />4) Rising cost of motor fuel. <br />5) Improved code enforcement program ($18,500). <br />6) Increased maintenance costs for City buildings, parks, equipment and <br />vehicles. <br />Review of the General Fund Levy: <br />The proposed General Fund operating levy for 2009 totals $2,945,511. This represents a <br />dollar increase of $148,611 or 5.31% percent. It is the maximum levy limit allowed by <br />the Minnesota Department of Revenue. <br />Road Improvements & Other levies: <br />As part of the Financial Management Plan, the following changes were made to the <br />levies: <br />1) The pay-off of the 1999A and 2003D road improvement bonds were removed from <br />the road improvement levy. <br />A. Total reduction = $87,000. <br />2) Silver Lake Road improvement was added to the road improvement levy. <br />A. Impact is offset by $37,000 <br />3) Tax Abatement levy was increased by $50,000 for Emerald Park, <br />A. Net effect = No increase in property taxes <br />