4. Staff Report-Budget UpdatesSCANDIA
Staff Repovt
Date of Meeting: September 2, 2015
To: City Council
From: Kristina Handt, Administrator
Re: 2016 Budget Changes from 8/19 Meeting
Background:
At the budget meeting on August 19ti', the Council directed staff to increase expenses in the 2016 Local
Road Improvement Fund budget to allow for work to be done on Oldfield Ave.
Updates:
The change to the LRIF for Oldfield Ave has been incorporated into the budget documents. The impacted
spreadsheets are included in your packet. This does not impact the tax levy for 2016 which remains at
$2,257,817 or a 1.82% ($40,362) increase over 2015. The projected fund balance in the LRIF by 12/31/16
is $173, 067. This number may be refined before final adoption in December after all of the Quinnell
Ave costs have been paid.
No other changes have been made to the budget. Council member Hegland was going to research the
audio equipment for the Council Chambers but we have not yet received an update so it remains in the
budget for $8,000.
Fiscal Impact:
With the proposed 1.82% increase, the City's tax rate will increase 6% from 34.619% to 36.712%. This
assumes the 4.3% decrease in market value on residential homestead taxes as provided by Washington
County. A home valued at $287,200 for 2016 would see an increase in local taxes of $8.92. A home
valued at $400,000 for 2016 would see an increase in local taxes of $17. A home valued at $100,000 for
2016 would see a decrease of $1.94 in local taxes. All of these examples assume the property saw a
reduction in value from 2015 to 2016 of 4.3%
Next Steps:
Staff will prepare the resolution to certify the preliminary levy based upon direction from Council at this
meeting. Unless further changes are made by the Council, the preliminary levy would be certified at
$2,257,817. The resolution will appear on the Sept 15t1i Council agenda.