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Home My WebLink About1998-09-02 PACKET 08.A.��QU�s o� ce cou�ciL AcrioN couNCO� aGE�Da MEETING ITEM # DATE 9/2/98 �� • PREPARED BY Finance Liz Johnson :�'P.{GIN,�,TlRlG C3EP�F�T6ulEIVT ST;-,cF ;GTHC3�r ,exx:e�nw�.ea��m�,�,t�+awe�+ceaa sa,t�� zxc,t�aw�aa:ex,a> COUNCIL ACTION REQUEST 1. Approve resolution adopting a proposed 1999 budget for the City of Cottage Grove 2. Approve resolution adopting a proposed 1998 tax levy, coliectible in 1999. 3. Set public hearing date for the Truth in Taxation Hearing and a hearing continuation date. BUDGET IMPLICATION: $ BUDGETED AMOUNT ADVISORY COMMISSION ACTION ❑ PLANNING ❑ PUBLIC SAFETY ❑ PUBLIC WORKS ❑ PARKS AND RECREATION ❑ HUMAN SERVICESlRIGHTS ❑ ECONOMIC DEV. AUTHORITY ❑ 6Y�l�l�l:i11�[H#Z�Z�I�l��il��t'�I � • ' � ' • ' •'. � •' � , � ' DATE ', t111t \:.��. �\ LEGAL RECOMMENDATION: ❑ OTHER: ,� �� , �, $ ACTUAL AMOUNT FUNDING SOURCE REVIEWED ❑ ❑ ❑ ❑ ❑ ❑ ❑ APPROVED ❑ ❑ ❑ ❑ ❑ ❑ ❑ DENIED ❑ ❑ ❑ ❑ ❑ ❑ ❑ _.�. �='—�---�t✓ ate � k t M rt k 4# Ye 3 f .k k k t k+# 8 a#'k a#�t 5�R tr*# W % rt Y:t fF E# 5�' t R# k rt#># rt �au�ci�. �c�rio� r��: ❑ �P�Rav�c� ❑ ��i�n ❑ oT�� To: Honorable Mayor and City Council Members CC: Ryan Schroeder, City Administrator From: Elizabeth Johnson, Finance Directo� Date: 08/24/98 Re: 1999 Preliminary 6udget and levy Introduction �'he City Council musY certify a preliminary budget and levy amount and set a date for the . initial Truth in Tasation Heuings. The dates available aze Monday December 7`� and Monday December 14`�. The continuation hearing must be held not less than 5 business days and no more than 14 business days afrer the initial public hearing. The continuation hearing is usually the second regular meeting in December. I would suggest setting the initial hearing for December 7` and the conYinuation for December 16` with the adoption hearing on December 16` Discussion The Council met to discuss the proposed 1999 budget during two evening sessions held on July 30` and August 3` An additional workshop session was held on August 19` There were a considerable number of changes from the budgeY's first iteration to its' `finaP iteration. I outlined some of the changes in my memo dated August 13�'. The greatest challenge presented by the 1999 proposed budget was to balance operating needs with debt repayment needs while maintaining as small an impact on the homeowner as possible. In order to accomplish the above goal, it was necessary to take a hard look at the budget and make many tough decisions. As a result of these decisions, a slight shift has occurred between operating and debt repayment requirements. To recap, the General Fund 1999 budget is set to increase 1%. The general levy is 93.8802% of the levy limit for taxes payable 1999 versus 96.6% of the levy limit for tases payable 1998. August 24, 1998 The following table summarizes the changes between pay 1998 and pay 1999. In response to Council wishes, staff has adjusted some of the amounts levied for interfund borzowings for the Police Computer and the MIS Computer expansion by lowering these Ievies and increasing the levy for the Economic Development Fund and adding a levy for the Economic Development Authority. The CGTAP lery is to repay an interfund loan that was used to construct the Grove Plaza traffic light improvements. The proposed ta�c rate is 28.93. Council could adopt a higher levy amount now to provide staff with more time to gather accurate tax capacity numbers. More accurate tax capacity numbers predict more accurately the mae ending tax rate. However, as it has been noted, Truth in Taacation notices ue generated based on the preliminary adopted amount. The levy can be reduced in December, but it cannot be raised. Action Requested Council should adopt the Resolution Adopting the Proposed 1998 Tas Levy, Collectible 1994 and the Resolution Adopting a Proposed 1999 Budget for the City of Cottage Grove, Minnesota. Council should also set the initial Truth in Ta�cation Heazing date as December 7�' and the continuation date for December 16'�. RESO�UTION NO. 98- RESOLUTION ADOPTINGTHE PROPOSED 1998 TAX LEVY, COLLECTIB�E IN 1999 BE IT RESOLVED, the City Council of the City of Cottage Grove, County of Washington, State of Minnesota, that the followi�g sums of money are the proposed amounts to be levied for the current year, collectible in 1999 upon the taxable property in the City of Cottage Grove for the foilowing purposes General Fund Economic Development Fund Economic Development Authority CGTAP Generai Obligation Bonds Capital Notes 1994 Capital Notes 1995 Special Assessment Bonds 1990 improvement Bond 1996 Improvement Bond 1998 Improvement Bond Leases/Interfund Loan , Police Computer MIS Computer Gray Cloud Bridge 4,589,100 35,700 23,800 32,100 79,000 91,700 � .�r • �� 33,500 32,500 9,700 Total Levy 5,274,700 BE IT FURTHER RESOLVED, that by September 15, 1998, the City Clerk is instructed to transmit a certified copy of this resolution to the County Auditor of Washington County, Minnesota. Passed this 2nd day of September, 1998. Attest: John 0. Denzer, Mayor Caron M. Stransky, City Clerk RESOLUTION NO. 98- RESOLUTION ADOPTING A PROPOSED 1999 BUDGET FOR THE CITY OF COTTAGE GROVE, MINNESOTA WHEREAS, the City of Cottage Grove provides a variety of services to the residents of Cottage Grove, and WHEREAS, the funds to provide services are reviewed and appropriated by the City Council at public hearings, and WHEREAS, it is necessary to generate sufficient revenues to meet the financial obligations, and WHEREAS, existing law requires certification of the proposed budget to the �ounty Auditor by September 15, 1998. NOW THEREFORE BE IT RESO�VED, the City Council of the City of Cottage Grove, County of Washington, State of Minnesota, hereby certifies the proposed 1999 budget, and BE IT FURTHER RESOLVED, that the City Clerk is hereby instructed to transmit a certified copy of this resolution to the County Auditor of the Washington County, Minnesota by September 15, 1998. Passed this 2nd day of September, 1998. Attest: Caron M. Stransky, City Clerk John D. Denzer, Mayor