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MINUTES <br />CITY COUNCIL <br />NOVEMBER 13, 2008 <br />noted that the schedule is aggressive to take advantage of lower <br />construction costs anticipated due to lower demands for these services. <br />The Finance Director also pointed out that the City's franchise fee on <br />electrical service is one revenue source for this fund. <br />The City Administrator indicated that should the State look to reducing <br />local government aids to solve its budget crisis, the franchise fee can be <br />used to offset State LGA cuts. He indicated that it is anticipated that the <br />State will have a budget deficit, so there is the very real possibility that <br />LGA and/or Market Value Homestead Credit will be reduced. <br />Blesener asked about the results of the first neighborhood meetings held <br />earlier this week. The City Administrator reported that the Eli <br />Road/DeSoto Street and the Thunder Bay Road neighborhoods appear to <br />support moving forward with the improvements. The Lakeside Court <br />neighborhood requested that the City mail a survey to property owners to <br />gauge their support. <br />The Finance Director then reviewed the Water/Sewer Capital Replacement <br />Fund, noting that the fund balance is being sustained at reasonable levels <br />to allow for future capital replacement needs and new acquisitions. <br />The Finance Director next reviewed the Parkland Acquisition Fund noting <br />that the goal of this fund is to purchase the remaining Round Lake <br />properties along Little Canada Road as they become available. The funds <br />on hand are considered sufficient to accomplish this goal. <br />Next reviewed was the Water Fund, with the Finance Director estimating a <br />net loss in 2009 of $17,070. This loss includes a 10% increase in the St. <br />Paul Regional Water Services rate being charged to the City. While it is <br />likely necessary to increase water rates in 2009, no increase would be <br />proposed to the water service fee. The anticipated water rate increase <br />would result in an additional $3.90 per quarter on an account averaging <br />20,000 gallons in usage. <br />The Finance Director reviewed the Sewer Fund noting that the 2009 <br />budgeted operations are expected to produce a loss of $65,159. The 2009 <br />revenues do not include a rate increase and project a negative growth rate <br />of 2%. A survey of 2009 sewer fees will be performed in March, and a <br />recommendation on the sewer rate will be made at that time. <br />The Finance Director then reviewed in detail the General Fund Levy <br />information, noting that a 5.00% gross levy increase as adopted as part of <br />the 2009 Preliminary Levy adopted in September, which results in a <br />3.93% net levy increase. The Finance Director noted that staff has <br />continued to pursue ways to lower that preliminary levy amount and <br />