09-08-2004 Council Workshop Minutes

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MINUTES CITY COUNCIL SEPTEMBER 8, 2004 of $3 ],642 from the 2004 ]evy). The franchise fee on the electric utility is also going to this fund. The levy for the Genera( Capital Lnprovement Fund is unchanged from 2003 and is consistent with the DLRC recommendation. ($87,000) The General Fund levy is up by 793% ($1,862,277 vs. $1, 827,038). The Accounting Supervisor tlien reviewed the General Fund Revenues, noting the following: The State has restored the Market Value Homestead Credit for 2005. The Credit is a payment by the State on behalf of lower valued homeowners to lower their property tax burden, and is really a part of levied property taxes. • License and Permit Revenues are projected at a 9.71% decrease over 2004 levels. The Supervisor noted that the City has had record highs in building permit revenues over the past few years, and she anticipates that those levels will return to a more typical level during 2005. • Local Government Aid remains at $0 for 2005. The County has increased the amount of its recycling grant that is available to the City. Reimbursement for the Falcon Heights Building Official was increased over 2004 Budget levels to recognize the additional billing associated with Fire Marshal services. The shared position arrangement is working well and has resulted in a savings to the City. I3owever, given that building activity is trending down, the City may revisit the Falcon Heights contract prior to presentation of the final budget. Fines and Forfeits Revenues have remained flat, while False Alarm Revenues have increased. • h~terest revenues are projected as flat even though rates may be on the rise given the City's investments are generally not expected to turn over during 2005. The Accounting Supervisor then reviewed highlights of General Fund Expenses, noting the following changes on a Depardnent-by-Department basis, and pointing out that total General Fund Expenses at'e projected to increase by 2.2%: