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5.8. SR 06-12-2006 City of EII< River Item Number REQUEST FOR COUNCIL ACTION 5.8. Agenda Section I Meeting Date Prepared by \\1 orksessioll June 12, 2006 Lori J 011nson, City J.L\chninistrator Item Description Reviewed by 2007 Prelitninatl' Budget Introduction I \vould like to get inpllt &on.1. tlle Council on tlle 2007 budget alld tax lev},. Discussion Depart11lellt 11eads are currel1tly pulling togetller tlleir budget requests. Ho\ve\rer, prior to putting togedler tlle draft budget for tlle City COUI1Cil, I \vould like Council input on se\Teral itelTIs. First, in previous years tlle Councilllas tried to keep tlle tax rate constant and has only lllcreased tlle lev}' by tlle atnount of tax generated on tlle lllcreased net tax capacity (NTC). TIle intent \vas to do tllat last year as \veIl. Ho\ve\Ter, tlle prelllTlinary NTC Sllerburne County pro.{ided \vas higll and later decreased after tIle tax lev;' \vas adopted causlllg tile tax rate to increase sliglltly. I \vant to confirln \vidl tlle COUllCil tllat tlle llltellt for 2007 is to re\Tert back to tlle 2005 tax rate. Second, I \vould like input froln tlle Council on any areas in \vhicll you feel staff sllould dedicate eitller ll1.0re resources or fe\ver resources. For instance, if you feel tllat \ve need to decrease the titne III \vhiell all of tile streets are plo\ved, \ve knO\V tllat \ve need to reallocate resources to sno\vplo\ving so tllat \ve call accoll1plisll tllat goal for tlle COUllCil. On tlle otller l1and, you tnay be a\vare of a progralll tllat you feel is no 10llger as itnportant as it once \vas and you \vould like to re-e\Taluate tllat progratn. Your input at this v"ery prelllnirlary point in tlle budget \villllelp to ensure tllat resources to accolnplisll tlle Council's goals for llext year are included III tlle budget. Detail budget inforlnatioll \v~ill be preseIlted to tlle Council in J.~ugust \vIlen you \vill be asked to gi\Te your lllput at a more detailed lev'el. J.L\t tllat titne, \ve \\lill re\Tie\v tlle tax levy, estitnated tax rate, capital outlay and staff requests, and tlle proposed budget for each departmellt. On rvlonday, your input on tlle tax rate and your goals for llext year's budget are tlle tnain points of discussion. Financial Impact None Attachments N aIle Action Requested Tlus is a discussion itelTI only. No forinal action is requested. s: \ Council \Lori \2006 \ Budget Preliminary 061206. doc Council Action Follow Up i\fotion by _ Second by _ \lote s: \ Council \Lori\2006 \Budgct Preliminary 061206.doc