Adopt Resolution #15-09-218 Adopting Proposed 2016 Payable Tax Levies (General, EDA & Debt Service) and Schedule Public Meeting for Dec 8, 2015

Purpose/Background:

Purpose:  Each taxing authority must certify its proposed preliminary property tax levies for payable 2016 to the County Auditor by September  30, 2015. Background:  The levy as presented reflects the recommendation of the majority of the City Council at the final preliminary budget/levy work session on September 8, 2015.  Proposed 2016 Payable Tax Levy: Proposed Tax Levies: General Fund Levy:                                                                                                        $  8,491,463 EDA Levy (Included in General Levy)                                                                                   75,618 (EDA presented 8-13-15) Debt Service Levy – CIP Bond-(Fire Station #1) (Being Requested)                                  147,420 Debt Service Levy – CIP Bond(Municipal Center) (Being Requested)                            1,072,013 Debt Service Levy - 2013 Equipment Certificate                                                                   74,505 Debt Service Levy - 2014 Equipment Certificates                                                                103,441  Debt Service Levy -CIP Bond-(Fire Station #2) (Being Requested)                                    109,213 Reconstruction Debt - Garnet Street & Overlays (Being Requested)                                   103,144      TOTAL PROPOSED LEVY – 2016                                                                         $10,176,817 The attached resolution, as it is presented, reflects a levy of $10,176,817. The proposed levy for 2016 reflects a $768,996 (8.17% increase) over the adopted levy in 2015 of $9,407,821. The levy increase of $768,996 is mostly attributed to two areas: Personnel Funding - $552,323 increase over 2015 adopted budget.  The increase is attributed to a cost of living (COLA) adjustment for approximately 75 employees; step increases; market rate adjustments (per union contracts); 2%-9.99% health insurance increases (based on plan), Election Judges (election year); Leap year (Full-time employees paid at 2088 hours instead of 2080); Police Holiday buy back option (per Union contract); increase in hours for two positions and three new positions:  Full-time Code Enforcement/License Coordinator, Full-time Drug Task Force Officer, and a Full-time Public Works Maintenance Worker.(begin April 1, 2016). Debt Service Levy - Approximately $240,000 of levy increase.  $103,144 of this levy is attributed to funding the Garnet Street & Overlay projects.  These were the first road projects that were undertaken as part of the long-term road reconstruction plan.  $109,213 of this levy is attributed to the construction of the new fire station #2 that is currently under construction to replace the current fire station #2. . As noted, the EDA levy is included in the overall levy amount of $10,176,817. While the proposed levy can always be reduced, it cannot be increased without "higher" level approval through an appeals process.   As noted, the amount of the levy was determined by the majority of the council at the work session of September 8, 2015.  After much discussion, the city council elected to authorize a higher preliminary levy increase at this time with the understanding that all avenues for levy reductions will be perused during the months leading up to final levy adoption in December.      The proposed levy must be certified to Anoka County by Wednesday, September 30, 2015. Therefore, the Council must make a decision at tonight's meeting as to the amount of this levy, or schedule a special meeting prior to the 30th. Schedule Budget Public Hearing Date: The Truth-in-Taxation law was changed in 2009. The City is no longer required to hold a special TNT hearing or to publish a notice of the TNT hearing. In lieu of the eliminated formal TNT hearing, the City is required to hold a regularly scheduled meeting at which the budget and levy will be discussed. The City may adopt the budget and levy immediately following. The public meeting must be held between November 25 and December 29 and held after 6:00 P.M. Staff is recommending that the public meeting be held at its regularly scheduled meeting of December 8, 2015, with adoption of the 2016 General Fund Budget and levy to immediately follow. The public meeting date must be certified to Anoka County by Wednesday, September 30, 2015; therefore, the City Council must make a decision as to the date selected for the 2016 payable public meeting at tonight's meeting.

As this is the adoption of a preliminary levy that can be amended (only lowered) no alternatives are being listed.  Budget worksessions until final adoption in December will allow for alternations if needed.

None required.

Based on the recommendation of the City Council at its work session of September 8, 2015, recommend authorization of preliminary levy in the amount of $10,176,817 with the possibility of reduction prior to City Council adoption of the final levy on December 8, 2015 and to schedule the city of Ramsey's budget/levy public meeting on Tuesday, December 8, 2015 at 7:00 P.M.

Motion to recommend Council adopt Resolution #15-09-218 Approving the Proposed 2015, Payable 2016 Tax Levy

and

Motion to schedule Budget/Levy public meeting date on Tuesday, December 8, 2015 at 7:00 P.M.