1987-10-19 Called Meeting - Laserfiche WebLink

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• CITY OF LA PORTS INTER-OFFICE "1EMORANDUt-i T0: Mayor P~[alone & City Council FROP•1: Robert T. Herrera City ;9anage~T~~ DATE: July 20, 1987 SUBJECT: Recommended Budget Rate for FY 87-88 It is staff's recommendation that Council adopt a budget with a tax rate of 66 cents per 100 dollars valuation (.66/$100 valuation). This amount will smooth over the loss of $290,000 in Federal Revenue Sharing, assist in paying for operational needs to maintain new facilities generated by the City's Bond Programs and minimize the use of the General Fund to balance the budget. The adopted tax rate should be structured to protect the overall credit worthiness of the General Fund and to maintain stable and reliable City programs which deliver a service. The following factual conditions require serious considerations when adopting a tax rate for La Porte's future. 1. Loss in Revenue Sharing of $290,000 or .03 cents of tax rate used for operations and capital outlay. 2. 1/2 cent of tax rate is allocated to cover salaries of employees connected with capital irnprovement projects generated by our Bond Programs. This level is expected to increase to 1 cent for FY 88-84. 3. An additional $15,000 or 1/6 cent of tax rate is necessary in FY 88-8Q for funding a full year of tcao police officers added in FY 87-88 (g month operations budgeted). 4. Loss of $15,000 or 1/6 cent of tax rate in interest income is projected for FY 88-89. 5. A 2~ increase in operations is projected for 1988-89 to offset rising insurance premiums, follow through of Pay for Performance Plan, increases in utility costs (electrical, gas, telephone, water) in the amount of $198,000 or 2.25 cents.