09-13-2017 Council Minutes - Laserfiche WebLink

Home Browse Search

MINUTES CITY COUNCIL SEPTEMBER 13, 2017 ANNOUNCEMENTS Keis announced that he and the City Administrator attended the Saint Paul Area Chamber of Commerce's political leadership luncheon, and the City of Little Canada was presented an award in the Public Works Category for the collaboration with Ramsey County on the reconstruction of Centerville Road. PRESENTATION — The City Administrator stated that the initial draft of the preliminary 2018 2018 budget is being presented. He explained that the initial proposal has a PRELIMINARY 7.22% gross levy increase and a 7.57% net levy increase, which is higher BUDGET than desired. He reported that the largest increase is the Sheriff's contract increase of $107,000, but that could be reduced by $38,000 if Falcon Heights joins the contract group which would lower the gross levy to 5.93% and the net levy to 6.07%. He explained that a positive impact is the decertification of TIF District 3-2. He stated that staff recommends using the $150,000 of new money from the decertification to soften the impact of this year's levy increase. The decertification essentially allows the $150,000 levy to translate to a zero percent levy increase given the increase in the City's tax capacity available for general taxation of $475,000. A $150,000 levy increase with the decertification has the same impact on the tax rate as a 0% levy without the decertification. The City Administrator reported that on the expense side of things, staff does not know health insurance costs yet but are projecting a 15% increase, election costs return since 2018 is an election year, and he is proposing a bigger cost of living increase for employees since he feels some key positions are lagging. He noted that the Council will discuss salary increases later. He stated that staff recommends waiting to certify the levy until the next Council meeting in order to hopefully hear what Falcon Heights votes to do with their police services, and then he will know what the sheriff's costs will be. Montour agrees that decertifying the TIF district is a good idea. McGraw stated this is a good idea and he does not see a downside. The City Administrator stated that putting the TIF district property back on the ad valorem tax rolls will be a benefit forever. He noted that the Parks & Recreation Commission will finish working on their list of capital improvement project priorities, and then the Council will review to determine budget amounts and what should be done in 2018. Keis requested the new social media costs and Parks & Recreation/ Community Services Manager salary to be separated out of the parks and recreation fund in order to better show what we are doing and where the money is being spent. 2