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MINUTES <br />CITY COUNCIL <br />SEPTEMBER 2, 1992 <br />The City Administrator reviewed taxable valuations, <br />levies and rates, noting that the City's taxable base <br />is declining. Part of the reason for this is shifting <br />tax burdens between different classes of property. <br />The Administrator reported that the 1993 proposed <br />General Fund levy is $1,205,471 which represents a <br />7.68% increase over 1992, and proposed Bonded <br />Indebtedness levy is $664,542 for a.01% increase. <br />This represents a total levy of $1,870,013, or a 4.82% <br />increase over 1992. <br />The Administrator reported that he is fairly <br />comfortable with the routine items in the budget, and <br />felt there was not much room for play in those areas. <br />There is latitude for changes in areas such as salaries <br />and health insurance benefits. The Administrator <br />reported that he has provided for 3.5% salary <br />adjustment plus step increases in the budget. The <br />Administrator also noted that the 1992 cap in City <br />participation in health insurance costs was $34,600, <br />and he has provided for a 15% increase in this cap. <br />These areas are open for discussion and will take <br />another workshop to finalize. <br />The Administrator reviewed the General Fund Revenue <br />portion of the budget, pointing out declining revenues <br />in the area of licenses and permits due to an <br />anticipated decline in building permits. The <br />Administrator also explained that $66,068 is being <br />budgeted for Local Government Aid in 1993, however, it <br />is likely that this amount could be reduced by the <br />Legislature due to an anticipated State deficit. <br />Homestead Credits are budgeted at $253,716 for 1993, <br />and this could be another area reduced by the State. <br />The impact on these funds will not be known until after <br />the 1993 Legislative Session. The Administrator felt <br />that the City needed a plan in the event that cuts are <br />made in funds due from the State. The Administrator <br />reported that there may be surpluses in the 1992 budget <br />that can be used to hedge against these kinds of cuts. <br />The Administrator pointed out that the City's revenue <br />in the area of Fines & Forfeits appears to be flat or <br />declining. The Administrator had concern that the <br />courts may be reducing fines. The Administrator also <br />noted that interest on investments has been budgeted <br />conservatively due to low interest rates. <br />Page 2 <br />