09-14-2016 Council Minutes - Laserfiche WebLink

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MINUTES CITY COUNCIL SEPTEMBER 14, 2016 Director stated that the General Capital Improvement Fund will need direction from the City Council to finalize this budget. She noted the Water & Sewer Fund has a very healthy fund balance. She stated the Council can certify a levy tonight if they choose, or discuss further at the next Council meeting, but the City has to certify the preliminary levy by September 30tH The Finance Director state there will be a General Fund surplus in 2016, which she is planning to transfer into the General Capital Improvement Fund. Montour asked about the project deficit in the General Capital Improvement Fund. The City Administrator stated if the City continues to get Local Government Aid, the deficit will go away, but projects seem to often get added in that were not planned. He stated that he does not want to become reliant on the Local Government Aid because of how instable it has been over the years. The City Administrator stated that one of the Council goals for 2016 was a community survey which would cost about $25k and it was not budgeted. He explained that the Comprehensive Plan Update costs will be at least $15,000 in 20t7 and 2018. He explained that the City's tax base is going up about 5 percent. The Finance Director stated the Council has to set a preliminary levy amount which can be lowered, but not raised when deciding on a final number in December. Montour stated he would support a 3% levy increase, and noted the Council has the mindset of keeping levy increases relatively even instead of high one year and low other years. McGraw agrees that he prefers to keep the levy amounts consistent from year to year. Fischer stated that it makes sense to keep the levy level even and maybe be able to get a few extra projects done. Torkelson stated that he would support 3.5% which is still below the average in the metro area. McGraw stated he is also comfortable choosing 3.5% right now. Keis stated he is comfortable with 3.5% now with the understanding that Staff is aware the Council would like it lower. He stated that there will be additional discussion before the final budget is adopted in December. Keis introduced the following resolution and moved its adoption: RESOL UTION NO. 2016-9-145 — APPROVING THE PRELIMINARY 2017 TAX LEVYAS FOLLOWS WHICH REPRESENTS 3.5% GROSS LEVY INCREASE: TAX LEVY FOR CERTIFICATION $3,049,698 GENERAL FUND $2,749,471 DEBT LEVY $0 INFRASTRUCTURE FUND $157,200 FIRE EQUIPMENT FUND $143,027 2