5.7. SR 11-13-2006
City of Elk River
REQUEST FOR COUNCIL ACTION
Agenda Section Meeting Date
Worksession November 13,2006
Item Description
Discussion on General Fund Bud et
Ad1I1inistrator
Introduction
The city's truth in taxation hearing is scheduled for December 4 at which time the proposed budget and
tax levy will be discussed. The final tax levy and budget will be approved at the following meeting. The
Council approved the proposed tax levy on September 11. At that time, the Council also approved
several changes to the General Fund budget. The General Fund budget has not been adjusted to reflect
those changes. In addition, there are several other outstanding items that need Council consideration so
the proposed budget can be drafted for the December 4 hearing.
Discussion
Below are the approved budget adjustments and items yet to be decided by the Council. In addition,
there are two changes for the recreation department. First, the capital outlay line item was reduced after
researching state bid prices, but those have changed and it needs to be increased back to the original
request. Second, the proposed budget did not include the replacement of the part time recreation
assistant vacancy created when Tonya Love was promoted to a full time recreation coordinator position.
Bill Maertz has since clarified that his intent was to add a full time position instead of increasing a part
time position to full time.
Council approved adjustments on September 11:
Proposed Tax Levy
Fund RSVP program
Reduce Council Contingency
$263,700
5,000
27,600
Items to be determined:
Elk River Area Arts Alliance
Contribution request
- 10,000
Other adjustments or corrections:
Police Software Conversion
First Payment
Pay Plan adjustments approved in October
Park Capital Outlay cost adjustment
Part time recreation assistant
Capital Outlay items to be purchased
out of General Fund - this will be
- 60,000
- 54,000
- 3,250
- 21,000
S:\Council\Lori\2006\budget nov 13 06.doc
determined based on funds available
after all other adjustments have
made.
Change in flexible benefit contribution
To be determined
To be determined
Once the Council provides input on the above items, the proposed budget will be prepared for
presentation at the truth in taxation hearing. If the Council wants to delay decisions on some of the items
that require action, the ERAAA contribution, recreation assistant addition and change in flexible benefit
contribution, the proposed budget will be drafted to include more capital ouday items that can later be
transferred back to the equipment certificate budget.
Financial Impact
Attachments
. Sample of Truth in Taxation publication notice
Action Requested
The final budget will be adopted in December. The Council is requested to review the above items to
determine the adjustments to the proposed budget that will be present at the December 4 truth in
taxation hearing.
Council Action
Motion by _
Second by _
Vote
Follow Up
S:\Council\Lori\2006\budget nov 13 06.doc
Notice of Proposed
Total Budget and Property Taxes
The"L.\ ~ ~~",L,(:. ci'lycouncil will hold a public hearing on its budget and on
the amount of property taxes it is proposing to collect to pay for the costs
of services the city will provide in 2007.
SPENDING: The total budget amounts below compare the city's 2006
total actual budget with the amount the city proposes to spend in 2007.
2006 Total
Actual BUdget
~ J 'D 6;"G I.Q I iSsu
I
Proposed 2007
Budget
~ llloDS 150
I I
Change from
2006 - 2007
q.S"~
TAXES: The property tax amounts below compare that portion of the
current budget levied in property taxes in the city of 't. ~l<..~v~ for 2006
with the property taxes the city proposes to collect in 2007
2006 Property Proposed 2007 Change from
Taxes Property Taxes 2006 - 2007
~ ~:~ d.,2:. l'lq~ ~ <:t.I S1. 05. to. 1.0 ~o
,.
I'
LOCAL TAX RATE COMPARISON: The following compares the city's
current local tax rate, the city's tax rate for 2007 if no tax levy increase is
adopted, and the city's proposed tax rate for 2007.
2006
Tax Rate
'i ~.~ ~ <<1 '7'0
\ . .
2007 Tax Rate if
NO Levy Increase
~~.~~,,%
2007 Proposed
Tax Rate
"-t ~ . 0 0 l ~o
Attend the Public Hearing
All '2:...tl<l<.~\i~City residents are invited to attend the public hearing ofthe
city council to express their opinions on the budget and on the proposed
amount of 2007 property taxes. The hearing will be held on:
Monday, December 4, at 6:30 p.m.
't:\K ~ ~vvr" City Hall
I ~D\..Q ~ O-YO(\ D ~a..." u..1,.A.I~
If the discussion of the budget cannot be completed, a time and place for
continuing the discussion will be announced at the hearing. You are also
invited to send your written comments to:
C\'~ o\:- 't.\~ \<..~"(!"1f'1 ~~ofc;,. Dtt/4
\::. 0 Ll ~ - D Y"t:N\. o~~., tl. \)V~ ' <t.. (\.l.. """R '\ v-t It'; N\ ~ S f) ~ ~ '0