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#2 & #3 Continued public hearing and action on FY2011 City and Library budgets ADMINISTRATIVE SERVICES MEMORANDUM November 15, 2010 TO: City Council FROM: Jacob J. Winzenz, Dir. of Administrative Services/Assistant City Manager SUBJECT: Continuation of Public Hearing and Action on 2011 Proposed City and Library Budgets Executive Summary The City Council has reviewed the 2011 budget at three budget study sessions and will hold two public hearings. The proposed 2011 Municipal Budget (General Fund and Library), has a .46% increase in total expenditures, a 2.30% increase in the tax levy, and a 1.64% increase in the gross tax rate. Recommendation The Administrative Services department recommends the City Council approve the proposed 2011 budgets. Suggested Motion(s)  Move to approve the 2011 proposed City Budget as revised by the City Council thru November 8, 2010, with a General Fund Budget in the amount of $41,598,244 and a tax levy (without TIF) in the amount of $25,437,644, and direct the Comptroller to include these amounts in the 2011 appropriation and levy resolutions.  Move to approve the 2011 proposed Hedberg Public Library budget with a tax levy (without TIF) in the amount of $3,207,919 for Library purposes, and direct the Comptroller to include this amount in the 2011 levy resolution.  Move to approve the 2011 Proposed Rent Assistance Budget. City Manager Recommendation The City Manager recommends approval. The General Fund Budget reflects a total budget that is $58,000 less than the 2009 budget. Although it was accomplished through the reduction or deferral of certain staff positions that will create more pressure on existing staff. Background The City General Fund budget incorporating the $0 of levy reductions made by the City Council during budget study sessions and council meetings and the Hedberg Public Library budget follows: Public Hearing on 2011 Proposed Budgets November 15, 2010 Page 2 2011 Proposed General Fund Budget $ Amount $Change % Change Operating Expenditures $36,615,160 $565,804 1.57% Debt Service 4,983,084 -385,559 % -7.18 Total Expenditures 41,598,244 180,245 0.44% Less: Non-Property Tax Revenue 15,260,600 -393,650 -2.51% Less: Applied Fund Balance 900,000 50,000 5.88% Tax Levy without TIF $25,437,644 $523,895 -2.10% Tax Levy with TIF $26,199,107 $587,882 2.30% Tax Rate with TIF $7.4358 $0.1201 1.64% 2011 Proposed Hedberg Public Library Budget $ Amount $ Change % Change Basic Operations $3,859,702 $20,657 0.54% Debt Service 241,086 7,934 3.40% Subtotal $4,100,788 $28,591 0.70% Less: Non-Property Tax Revenue 834,199 -46,186 -5.25% Less: Applied Fund Balance 58,670 8,670 17.34% Tax Levy without TIF $3,207,919 66,107 2.10% Tax Levy with TIF $3,303,946 $74,178 2.30% Tax Rate with TIF $0.9378 $0.0152 1.65% If the City Council accepts the proposed amended budget, the typical Janesville home assessed at $114,000 will pay $955 for Municipal (City and Library) services, or an increase of $16, or 1.7%. Based upon a projected all jurisdiction tax rate, the typical Janesville home assessed at $114,000 would pay $3,003, or an increase of $33, or 1.1% (without First Credit or Lottery Credit). The proposed General Fund Budget for 2011 is $623,825 under the Expenditure Restraint Program limits and $1,123,877 under state levy limits. Additional Information The following supporting documents are attached:  City Council Budget Adjustments (Attachment #1)  Assessment Value of Taxable Property (Attachment #2)  Ten-Month 2010 Revenue Summary (Attachment #3)  Estimated Distribution of Total Tax Rate Comparison (Attachment #4) Public Hearing on 2011 Proposed Budgets November 15, 2010 Page 3  Estimated Comparison of Gross Taxes Paid (Attachment #5)  Municipal Levy Assessed Tax Rate Analysis (Attachment #6)  Ten-Month 2010 Expenditure Summary (Attachment #7) The formal adoption of the appropriation/tax levy ordinance will occur at a special meeting to be scheduled by the Council President when we have the final school, lottery, and first credits. Staff suggests that this meeting be scheduled for Monday, November 29 at 7:00 A.M. or Tuesday, November 30 at 7:00 A.M. If the Council would like any additional information, please let me know. Cc: Eric J. Levitt, City Manager