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Home My WebLink About20070917 - VIII-C-1 MEMO VIII-C-l TO: Mayor and Council Members Dave Osberg, City Administrator Charlene A. Stark, Finance Director Resolutions for the Preliminary 2008 Budget September 11, 2007 FROM: RE: DATE: CC: WU-r:N,;,m;.-,:?>~. ~ ~~~ "'~__.>;;<I~~~t~~~~"'.1'k't'\~-~...m'N~"'D-":,-:'Z'<,;;"~ _I'!>.'~"=':S"""M':;'SI.."~_ ....,....o..~:..~%~~..,.,,; Attached are the four resolutions needed tonight to certify the preliminary 2008 budget, the City property tax levy, the HRA property tax levy and to set the truth in taxation public hearing date and continuation date if needed. This year the budget process has been hit with several challenges that we will need to overcome in order to balance the 08 budget. The first challenge being the decrease in the change in tax capacity of about 50%, in the past the City has had an advantage of a tax capacity increase of about 1.8 million. ill 2008 the City will only see an approximate increase of900,000 or about 50%. The second challenge is the lower anticipated revenue in the general fund due to the slowing market in housing. This not only decreases building permit revenues, but planning fees as well. Administration and Finance see these two factors as a trend for the next couple of budget cycles and thus the goal to have the tax rate remain flat will become ever increasing difficult to achieve. The Finance Committee of the City council has conducted its annual meetings with the Department heads and provided direction to the City Administrator and Finance on the 2008 budget. The recommendation of the Finance Committee is to adopt a preliminary budget with a 2% increase to the City's Tax Capacity Rate and to further explore additional cuts and or reallocation of city resources to lower the tax rate as much as possible without cutting too deep in the needs of the City departments. The current preliminary budget with a 2% increase to the levy from 07 will result in reductions to expenditures or other revenue sources of $1,992,852. After tonight's action the City Administrator, Finance Director and Department heads will conduct meetings to determine the priorities of the City and to discuss revenue funding sources available. Recommended City Council Action Staff recommends that the City Council take action approving the following resolutions regarding the preliminary 2008 Budget: I. 2008 Proposed City Budget 2. 2008 Proposed City Property Tax Levy 3. 2008 HRA Tax Levy 4. Set Truth In Taxation Public Hearing Dates CITY OF HASTINGS RESOLUTION # RESOLUTION ADOPTING A PROPOSED YEAR 2008 CITY BUDGET WHEREAS, the Finance Committee of the City Council has met with individual departments and division directors to discuss their proposed 2008 budget requests. The Committee has also met to discuss and approve a preliminary year 2008 City budget and preliminary Tax levy; and WHEREAS, provisions of the Minnesota Truth and Taxation law require Cities to certify a Proposed Property Tax levy and City Budget to the County Auditor by September 17,2007; and NOW, THEREFORE BE IT RESOLVED, that the preliminary 2008 City's budget for the City of Hastings is hereby set at $ 26,805,286. ADOPTED BY THE CITY COUNCIL OF THE CITY OF HASTINGS, THIS 17th DAY OF SEPTEMBER,2007. Ayes: Nays: Paul Hicks, Mayor ATTEST: Melanie Mesko lee, City Clerk CITY OF HASTINGS RESOLUTION # RESOLUTION ADOPTING THE PROPOSED 2008 CITY PROPERTY TAX LEVY WHEREAS, the Finance Committee has met to discuss a proposed 2008 City Levy; and WHEREAS, .. -provisions of the Minnesota Truth and Taxation Law require Cities to certify a proposed Property Tax Levy to the County Auditor by September 17, 2007 for the 2008 budget and levy year; and WHEREAS, the Finance Committee of the City Council has directed staff to prepare this resolution resulting in a 2008 Proposed Property Tax Levy; and, NOW, THEREFORE BE IT RESOLVED, that the proposed Property Tax Levy of the City of Hastings, for the 2008 City Budget to be certified is hereby adopted as follows: Proposed "General "Levy Proposed Debt Levy Total Proposed Tax Levy Proposed Levv * $ 8,391,000 2,889.000 11,280,000 * Amount Certified to the State of Minnesota and to Dakota and Washington County Auditors. This is the amount the Counties will use for the calculations of the Truth in Taxation notices mailed to property owners in mid November - December 2007. ADOPTED BY THE CITY COUNCIL OF THE CITY OF HASTINGS, THIS 17th DAY OF SEPTEMBER, 2007. Ayes: Nays: Absent: Paul Hicks, Mayor ATTEST: Melanie Mesko Lee, City Clerk CITY OF HASTINGS RESOLUTION NO. RESOLUTION OF THE CITY COUNCil OF THE CITY OF HASTINGS APPROVING A PROPOSED 2008 HRA SPECIAL TAX lEVY WHEREAS, the Housing and Redevelopment Authority in and for the City of Hastings adopted Resolution 2-2007. This Resolution authorizes the Levy of a Special Benefit Tax pursuant to Minnesota Statutes 469.033 Subdivision 6; and WHEREAS, the Housing and Redevelopment Authority in and for the City of Hastings (the "Authority") was created by the City Municipal Housing and Redevelopment Act, Minnesota Statutes. Section 469.001 to 469.047 (formerly, Section 462.411 to 462.711) ("the Act"); and WHEREAS, Section 469.033, Subdivision 6, of the Act permits the Authority to levy and collect a special benefit tax of up to .0144 percent of taxable market value in the City upon all taxable property, real and personal, within the City; and WHEREAS, the Authority desires to levy such tax based upon the limit of .0144 % of the taxable market value, and WHEREAS, the levy of such a special benefit tax is subject to consent by Resolution of the City Council of the City of Hastings. NOW, THEREFORE BE IT RESOLVED, by the Hastings City Council that the City of Hastings HRA Special Levy be granted, subjected to the limit of .0144 percent of taxable market value as per Minnesota Statue. ADOPTED BY THE CITY COUNCil OF THE CITY OF HASTINGS THIS 17th DAY OF SEPTEMBER, 2007. Ayes: Nays: Paul Hicks, Mayor ATTEST: Melanie Mesko Lee, City Clerk CITY OF HASTINGS RESOLUTION # RESOLUTION SELECTING DATES FOR THE YEAR 2008 CITY BUDGET AND TAX LEVY TRUTH IN TAXATION PUBLIC HEARING WHEREAS, the City Finance Committee members of the City Council and individual departments have met and reviewed the proposed budget for 2008, and WHEREAS, provisions of the Minnesota Truth and Taxation Law require Cities to select dates (that do not conflict with County, School or Special Taxing Districts public hearing dates) for a public hearing to receive public comment on the proposed 2008 City Budget and Tax Levy; NOW, THEREFORE BE IT RESOLVED, that the Hastings City Council will conduct a public hearing on the proposed 2007 City Budget and Tax Levy at 7:00 p.m. on Monday, December 3, 2007 in the Council Chambers of the Hastings City Hall; and BE IT FURTHER RESOLVED, that should a continuation public hearing on the proposed 2008 City Budget and 2008 Tax Levy need to be conducted, it shall be held at 7:00 p.m. on Monday, December 17,2007 in the Council Chambers of the Hastings City Hall. ADOPTED BY THE CITY COUNCIL OF THE CITY OF HASTINGS THIS 17th DAY OF SEPTEMBER, 2007. Ayes: Nays: Paul Hicks, Mayor ATTEST: Melanie Mesko Lee, City Clerk