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5 <br />MEMORANDUM <br />DATE: December 10, 2008 <br />TO: Mayor and City Council Members <br />FROM: Mike Mornson, City Manager <br />Roger Larson, 'Finance Director <br />ITEM: SETTING THE 2009 BUDGET & PROPERTY TAX LEVY <br />The information necessary to compile a reasonable 2009 Operating Budget and Property <br />Tax Levy is a representation of financial management planning established at City <br />Council work sessions held on April 29th, ,July 29°i and September 3". In addition, the <br />City held a public hearing at is Truth -in -Taxation meeting on December 8, 2008. <br />The following is a review of the 2009 General Operating Budget and Property Tax Levy. <br />'The budget reflects a dollar increase of $278,800 or a. percentage increase of 5.58% from <br />last year's operating budget. <br />Issues but)(ecting 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) Increased maintenance costs for City buildings, parks, equipment and <br />vehicles. <br />Review of the General ,'and Levy: <br />The General Fund operating levy for 2009 totals $2,945,511. This represents a dollar <br />increase of $148,611 or 5.31% percent. It is the maximnrn levy limit allowed by the <br />Minnesota Department of Revenue. <br />Total Levy: <br />The 2009 levies are as follows <br />Levy <br />Increase / (Decrease) <br />General Fund Levy <br />$2,945,511 <br />$148,611 <br />Road Improvement Levy <br />$1,059,596 <br />$ 91,565 <br />Lease Revenue Bonds <br />$ 399,536 <br />$ 5,119 <br />HRA Levy <br />$ 110,500 <br />$ - 0 - <br />Tax Abatement — Central Park <br />$ 79,294 <br />$ 51,554 <br />PLRA Levy <br />$ 7,500 <br />$ - 0 - <br />$4,601,937 <br />$296,849 <br />