AGENDA #7a

MEMORANDUM

TO:                  Mayor and Town Council

FROM:            W. Calvin Horton, Town Manager

SUBJECT:      Consideration of Final Budget and Related Items

DATE:            June 26, 2006

Adoption of the attached resolution would establish the budget for 2006-07 and authorize a variety of related actions.  The resolution establishing the budget for 2006-07 would set a tax rate of 47.4 cents per $100 assessed value for the General Fund and 4.8 cents per $100 assessed value for the Transportation Fund for a combined tax rate of 52.2 cents per $100 assessed value, the same level as in 2005-06.  The resolution would set the tax rate for the Downtown Service District at 9.0 cents per $100 assessed value.

The Council may choose to vote on each item separately or may choose to make adjustments in any of the separate items before voting on the comprehensive resolution.

Separate items follow that:

• Summarize the final budget decisions made by the Council and offer a Budget Ordinance for action by the Council.
• Establish fees for a variety of Town services.
• Amend the position classification and pay ordinance to reflect position changes recommended by the Manager and considered in the Council’s budget discussions along with pay changes to be effective September 26, 2006.
• Authorize projects for construction through the Council’s 15-Year Capital Improvements Program.
• Establish a project ordinance for the 2006-07 Community Development Program.
• Authorize the Manager to negotiate and execute performance agreements with agencies as recommended by the Human Services Advisory Board.
• Authorize the acceptance of a Transportation Grant for 2006-07 Budget (R-20).

DISCUSSION

We are pleased to bring to you the package of items that upon adoption would constitute the annual budget for 2006-07.  The final budget proposal continues basic services, provides a fare free transit system as in past years, provides pay adjustments to hire and retain a high-quality work force necessary for high-quality service, increases fire services, increases police service in the Downtown and includes allowance for the increased costs of fuel.  The Council’s discussions of downtown improvements also are reflected in the 2006-07 budget with the addition of a groundskeeper and a reserve for parking paid for by the Downtown Service District Fund.

At the same time, the budget includes funds to continue the work approved by voters in the November 2003 bond referendum for additional sidewalks, parks, energy efficient projects and design work for a major library expansion.  Capital programs continue to provide necessary maintenance of current Town facilities.

RECOMMENDATION

We recommend that Council adopt the attached resolution to establish a budget and authorize related work for 2006-07.