HomeMy WebLinkAbout3.A. General Fund 2009 Budget r Wi
CITY- OF SHAKOPEE
Memorandum
TO: Mayor and Council
Mark McNeill, City Administrator
FROM: Gregg Voxland, Finance Director
SUBJ: General Fund 2009 Budget
DATE: January 31, 2008
Attached is a schedule showing a possible scenario for the General Fund
2009 budget. The city has relied on tax base growth to pay for
expanding services for many years. Recent market conditions present
the possibility of no increase in tax base for the 2009 budget.
The assumptions in the attached schedule are:
1. No change in General Fund tax levy for 2009.
2. MVHC is not included ($530,000).
3. Franchise tax not implemented.
4. No new fees or other revenue sources.
5. Other revenue sources almost unchanged.
6. Expenditure increases as shown in the lower box.
The deficit shown for 2008 ($892,410) is mostly covered by the
estimated under-spend of $682,000 (4%). Council should consider a
lower percentage for 2009.
Very preliminary market value numbers will be available in March when
the valuation notices go out with the 2008 tax statements. The County
Auditor will pull a sampling of data to get a very preliminary estimate
of what tax capacity may be. The next set of data will be in late July
after the Board of Review results are in. Final tax capacity numbers
would not be until February of 2009 when calculations are finalized for
generating the 2009 tax statements.
Based on the assumptions, the 2009 budget gap could be a million plus.
That is equivalent to 10 - 12 employee positions. It is recommended
that Council:
1. Evaluate any employee hiring and spending initiatives for 2008.
2. If there are staffing reductions, it should be done in 2008 to
avoid 2009 costs for unemployment and severance benefits.
3. Evaluate services/programs/committees implemented in recent years
to see if-they should be continued.
4. Prioritize all existing services and service levels to determine
funding levels.
5. Pursue energy efficient ideas for all city buildings and
activities.
6. Decide whether to replace the water slide of just remove it. Tax
support for the aquatics program over the past 4 years has ranged
from about 70% ($234,000) in 2004 to 54% ($298,000) in 2007.
7. What amount (if any), the operating levy should increase.
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