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7. Staff Report-2015 Draft Budget Staff Report Date of Meeting: October 1, 2014 To: City Council From: Kristina Handt, Administrator Re: 2015 Draft Budget Background: At the September work session, the Council certified the maximum preliminary levy at $2,217,509 which is a 2.14% (or $46,435) increase over 2014. Issue: Are any further changes needed to the budget prior to the public hearing on December 3rd? Proposal Details: The draft budget has been updated to reflect the preliminary levy amount. In your packet are copies of the budget pages (admin, Public Works, Capital Improvement) that have changed since the Sept work session and updated summary pages. Changes include the reduction of the Capital Improvement Fund from $50,000 to $30,000 levy contribution in 2015. Also, the new health insurance rates have been included. The $11,000 mentioned at the last work session was a rough estimate. Once staff did the calculations, the total amount was within the $10,000 the Council shifted from the Capital Improvement Fund for this purpose. Fiscal Impact: The charts below show the impact of a 2.1% levy increase for a number of different home values. The first chart shows the 2014 values and taxes. The second chart assumes a 19.8% increase in market value and shows the tax impact of a 2.1% levy increase. Actual Pay 2014 Pay 2014 76,000 @40% 500,000@1.0% (A7 x G) + MV - rem @ 9% (D) - (E) rem @ 1.25% (A12 X D) 224,500 17,000 207,500 2,075 $850.25 83,500 29,700 53,800 538 $220.45 125,200 26,000 99,200 992 $406.48 208,700 18,500 190,200 1,902 $779.36 333,900 7,200 326,700 3,267 $1,338.69 Proposed Pay 2015 Pay 2015 MV 76,000 @40% 500,000@1.0% (B7 x G) + X 1.198 - rem @ 9% (D) - (E) rem @ 1.25% (B12 x D) 268,900 13,000 255,900 2,559 $885.23 100,000 28,200 71,800 718 $248.38 150,000 23,700 126,300 1,263 $436.91 250,000 14,700 235,300 2,353 $813.97 400,000 1,200 398,800 3,988 $1,379.57 Options: 1) Provide direction to staff on additional changes to make to the draft before the public hearing 2) Do not make any additional changes at this time