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City Council Minutes <br />December 3, 2013 <br />Page 3 of 10 <br />----------------------------- <br />Mayor Adams explained that the City certified a preliminary levy of an <br />8.91 % increase from the 2013 levy. She stated that the levy has now been <br />further reduced to a 0.40% increase. <br />Nancy Malecha, Finance Director/Deputy City Clerk, gave a power point <br />presentation on the proposed 2014 budgets and levy. Key points in the <br />presentation included: <br />• City levy history from 2009 to present <br />• Review of the projected tax levy fund revenues and expenditures <br />• Review of the HRA levy history from 2009 to present <br />• Review of the special enterprise fund revenues and expenditures <br />• The amount of money the City paid in sales tax in 2012 and the <br />amount the City was able to reduce the budgets in 2014 due to the <br />sales tax exemption <br />• Review of the 2013 and 2014 City tax rates <br />• Review of possible factors contributing to property tax increases <br />Mayor Adams proposed to further reduce the general fund levy by $4,000 <br />by using fund balance to purchase computers. This reduction would result <br />in a 0.13% increase in the levy. <br />Mayor Adams opened the public hearing. <br />Michael Czech, 3816 Wildlife Trail questioned why there is a shortfall <br />between expenditures and revenues. The Mayor explained that the City <br />has used some of its general fund balance to cover the shortfall. <br />Council Member Pederson explained that the City has worked very hard at <br />keeping the tax levy as close as it was last year. <br />Sal Sposito, 32248 Rolling Meadows Lane, questioned the logic for <br />equalizing the urban and rural tax rates. Council Member Sjoblad stated <br />that the reason was because of the 50% difference in tax rates between <br />the township and the city. Council Member Pederson explained that there <br />is a need to reduce the City's tax rate to be more in line with surrounding <br />communities. <br />Michael Czech, 3816 Wildlife Trail, stated that the rural community tax rate <br />is going up by 35%. He suggested splitting the taxes by the number of <br />property owners in the city. <br />Jim Eder, 3011 White Oak Road questioned why the taxes were not <br />equalized over a longer period of time. Council Member Sjoblad explained <br />