AGENDA #7a

MEMORANDUM

TO:	Mayor and Town Council
FROM:	Roger L. Stancil, Town Manager Kenneth C. Pennoyer, Director of Business Management
SUBJECT:	Consideration of Final Budget and Related Items
DATE:	June 9, 2008

Adoption of the attached resolution would establish the budget for 2008-09 and authorize a variety of related actions.  The resolution establishing the budget for 2008-09 would set a tax rate of 42.3 cents per $100 assessed value for the General Fund, 11.0 cents per $100 assessed value for Debt Service and 4.8 cents per $100 assessed value for the Transportation Fund for a combined tax rate of 58.1 cents per $100 assessed value, an increase of 5.9 cents over the 2007-08 budget. The resolution would set the tax rate for the Downtown Service District at 9.0 cents per $100 assessed value, the same level as in 2007-08 and 2006-07.

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.
• Authorize projects for construction through the Council’s 15-Year Capital Improvements Program.

DISCUSSION

We are pleased to bring to you the package of items that upon adoption would constitute the annual budget for 2008-09.  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,
• Establishes a separate property tax rate for debt service obligations,
• Provides for priority capital projects, and
• Continues contributions to Human Services, Arts, Affordable Housing and Economic Development agencies.

RECOMMENDATION

We recommend that Council adopt the attached resolution to establish a budget and authorize related work for 2008-09.