11-20-2017 Council Minutes - Laserfiche WebLink

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MINUTES CITY COUNCIL NOVEMBER 20, 2017 McGraw asked if these changes will fix the deficit next year. The City Administrator stated that if we only use one-time fixes, that deficit will still be there, but there will be fiends available from other places over the next few budget cycles that should allow us to eliminate the deficit permanently. He explained that we need on-going revenue increases or budget deductions to erase this. The additional 2% of the levy for 2018 is strictly to reduce the dependence on LGA. Fischer proposed the following to cover the budget deficit: $30 increase in the employee health insurance costs, $5,000 from the cable fund, $15,000 from the recycling fund, and the remainder of the deficit balance would come from the 2017 surplus. Torkelson clarified that Fischer is suggesting withdrawing from the recycling fund again next year if necessary. Fischer stated that he sees no specific purpose in maintaining that much in that fund. Montour introduced the following resolution and moved its adoption: RESOLUTION 2017-11-217 APPROVE THE FOLLOWING TO ELIMINATE THE BUDGET DEFICIT. 1. INCREASE EMPLOYEE'S SHARE OF DEPENDENT HEALTH INSURANCE COSTS BY $30 PER MONTH 2. TRANSFER $5,000 FROM THE CABLE TV FUND 3. TRANSFER $15,000 FROM THE REFUSE/RECYCLING FUND 4. COVER THE REMAINING DEFICIT BALANCE WITH 2017 SURPLUS FUNDS The foregoing resolution was duly seconded by Fischer. Aye (5). Nays (0). Resolution declared adopted. The City Administrator stated that he is aware of the Council's concern regarding the additional 2% levy increase. He explained that this is a unique year in that with retiring TIF District 3-2, it provides the City with a great opportunity for the 2018 budget cycle given that a 4.95% levy increase is effectively a zero impact due to the growth in the tax based resulting from the decertification. He stated that Local Government Aid has been an unstable line of funding from the state, and the Council has long wanted to remove the General Fund's dependence on LGA. Levying an additional 2% (to 6.95) will still result in Little Canada having the lowest municipal impact in 2018 and help achieve our goal of reduced reliance on LGA in the General Fund. The City Administrator reviewed the City's levy rates, the impacts for next year, and the school district levy impact.