#2 & #3 Continuation of public hearing and action on proposed 2012 City and Library budgets
ADMINISTRATIVE SERVICES MEMORANDUM
November 22, 2011
TO: City Council
FROM: Jacob J. Winzenz, Dir. of Admin. Services/Assistant City Manager
SUBJECT: Continuation of Public Hearing and Action on 2012 Proposed City and
Library Budgets
Executive Summary
The City Council has reviewed the 2012 budget at four (4) budget study sessions and
will hold two public hearings. The proposed 2012 Municipal Budget (General Fund and
Library), has a .46% increase in total expenditures, a 3.12% increase in the tax levy,
and a 5.58% decrease in the gross tax rate. The decrease in the tax rate is primarily a
result of the increase in assessed values resulting from the city-wide revaluation.
Recommendation
The Administrative Services department recommends the City Council approve the
proposed 2012 City and Library budgets.
Suggested Motion(s)
Move to approve the 2012 proposed City Budget as revised by the City Council
thru November 14, 2011, with a General Fund Budget in the amount of
$41,923,916 and a tax levy (without TIF) in the amount of $26,191,766, and
direct the Comptroller to include these amounts in the 2012 appropriation and
levy resolutions.
Move to approve the 2012 proposed Hedberg Public Library budget with a
tax levy (without TIF) in the amount of $3,201,921 for Library purposes,
and direct the Comptroller to include this amount in the 2012 levy
resolution.
City Manager Recommendation
There was a Council member question at the last Council meeting regarding 3 budget
items.
Item #1 – Golf Course -- $100,000 subsidy
We believe we could cut about $15,000 from expenses which would have minimal
impact on services. There would be an impact but it would not have a major impact.
The Council could also increase fees at Blackhawk by 50 cents per area and increase
revenues by about $4,000.
Item #2 – $10 Vehicle Registration Fee – Eliminate proposed fee
If this fee is not approved, the City Manager recommends that half of the fee $275,000
is made up through budget cuts over the next 60 days and that the other half $275,000
Public Hearing on 2012 Proposed Budgets
November 22, 2011
Page 2
be made up through budget cuts or use of the Fund Balance.
Item #3 – Eliminate Director of Utility – The City Manager has concerns with elimination
due to this position overseeing directly a $26 Million operation of the City. If the Council
wants to eliminate the position, I would recommend filling in over the next year by
contracting due to having several Utility specific issues coming up in the next year.
In conclusion, the City Manager recommends approval of the budget as amended
during the Study Sessions.
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:
2012 Proposed General Fund Budget
$ Amount$ Change% Change
Operating Expenditures$36,737,312$132,1520.36%
Debt Service$5,186,604$203,5204.08%
Total Expenditures$41,923,916$335,6720.81%
Less: Non-Property Tax Revenue$14,907,150($353,450)-2.32%
Less: Applied Fund Balance$825,000($65,000)-7.30%
Tax Levy without TIF$26,191,766$754,1222.96%
Tax Levy with TIF$27,109,015$909,9083.47%
Tax Rate with TIF$7.0453($0.3907)-5.25%
2012 Proposed Hedberg Public Library Budget
$ Amount $ Change % Change
Basic Operations $3,761,351 ($98,351) -2.55%
Debt Service $215,502 ($25,584) -10.61%
Subtotal $3,976,853 ($123,935) -3.02%
Less: Non-Property Tax Revenue $774,932 ($59,267) -7.10%
Less: Applied Fund Balance $0 ($58,670) -100.00%
Tax Levy without TIF $3,201,921 ($5,998) -0.19%
Tax Levy with TIF $3,314,054 $10,107 0.31%
Tax Rate with TIF $0.8613 ($0.0766) -8.17%
Public Hearing on 2012 Proposed Budgets
November 22, 2011
Page 3
If the City Council accepts the proposed amended budget, the typical Janesville home
assessed at $120,100 will pay $949.59 for Municipal (City and Library) services, or a
decrease of $5.32, or .6%. Based upon a projected all jurisdiction tax rate, the typical
Janesville home assessed at $120,100 would pay $3,001.34, or a decrease of $2.92, or
0.1% (without First Credit or Lottery Credit).
The proposed General Fund Budget for 2012 is $1,149,029 under the Expenditure
Restraint Program limits and $36,874 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)
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,
December 5 at 7:00 A.M. or Tuesday, December 6 at 7:00 A.M.
If the Council would like any additional information, please let me know.
Cc: Eric J. Levitt, City Manager