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HomeMy WebLinkAbout2.a. 2007 BudgetAGENDA ITEM: 2007 Budget AGENDA SECTION: Discussion PREPARED BY: Jamie Verbrugge, City Administrator AGENDA NO. 2A ATTACHMENTS: None APPROVED BY: RECOMMENDED ACTION: Discussion ROSEMOUNT CITY COUNCIL City Council Work Session August 23, 2006 ISSUE Continue discussion of the preliminary budget for 2007. BACKGROUND The purpose of this City Council Work Session is to continue discussions of the preliminary 2007 budget Department heads provided an overview of departmental operations and line ttern requests at the previous meeting. Remaining to overview are the requests for capital expenditures contained in the Capital Improvement Program for 2007. Following the CIP overview, Council is encouraged to discuss what the preliminary levy should be As presented to Council on August 9, the levy figure would result in a flat tax rate for 2007. This will be the fifth consecutive year that the City's tax rate has not increased. Property owners will however likely experience an increase in actual tax dollars due to the annually adjusted market value as determtned by the County Assessor The phase -out of the limited market value has meant double digit increases in taxable market value for many properties over the past couple years. As properties approach a figure that the Assessor deterntnes is closer to the real market value, fewer homes will be experiencing such a healthy inflation in value. The current housing market is also likely to have a moderating effect on increasing valuations Council will be asked to cemfy the preliminary levy at its regular meeting on September 5 The preliminary levy sets the maximum amount of funds that may be levied to taxpayers. The Council will have the option to reduce that figure when setting the final budget in December, however the levy may not increase. SUMMARY Staff requests direction to set the preliminary levy for 2007. EXECUTIVE SUMMARY No budget materials have been provided with this packet as no substantial changes to the documents have yet been made Council members are asked to bnng the budget packet that was prepared for the August 9 work session.