HomeMy WebLinkAbout6.A. & B. Taxy Levy 2009 Pay 2010
0.A. ~B.
CITY OF SHAKO PEE
Memorandum
TO: Mayor and Council
Mark McNeill, City Administrator
FROM: Gregg Voxland, Finance Director
SUBJ: Tax Levy 2009 pay 2010
DATE: August 7, 2009
Introduction & Background
The determination of the pay 2010 tax levy will presented at the
meeting. Two things Council should consider are:
1. The EDA levy by the City has been $60,000 for numerous years. This
is for the economic development activities of the EDA. There is
also a levy of $20,000 by the EDA for redevelopment activities.
The fund balance of the EDA is around $500,000, with a budget of
about $40,000 for 2010.
The EDA has done only one project with its own funds in the past
30+ years, aside from the fa9ade improvement loans. Council and
the EDA should consider whether to levy any taxes for pay 2010.
2. There is no debt service levy included for 2009 projects. The bond
issue for 2009 would be very small and therefore it is planned to
combine 2009 and 2010 projects for a bond issue in 2010. The levy
for the 2010 bond issue would then be around $240,000 based on
projections.
If council wants to maintain the same or reduced total levy for pay
2010 and 2011, this reduces the amount available for the general
fund operating levy.
Decision points following the presentation and discussioni
1. Amount of city levy for the EDA.
2. Amount of city levy.
The Council meeting of September 1, 2009 is scheduled for the adoption
of the maximum tax levy and proposed budget. The budget amount can
change anytime - the tax levy, with few exceptions, can only be
reduced. With a number of uncertainties at this point, Council should
consider allowing a ucushion" in the maximum tax levy adopted in
September.
Gregg Voxland
Finance Director
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