12-08-93 Council Minutes - Laserfiche WebLink

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MINUTES CITY COUNCIL DECEMBER 8, 1993 The Administrator reviewed the graph pointing out that the City paid off and restructured some of its debt to level off its debt service levy at approximately $664,000 through the year 1999. After that point, debt service falls off dramatically, and in the year 2003 there is no City debt. Recently a couple of bond issues were refunded because of lower interest rates resulting in about $84,000 reduction in debt service costs in 1994-1997. We are proposing this money continue to be levied for capital improvements for that period of time. This money is available for the next four years. In the years 1998 and 1999 the levy is again needed for debt service due to past debt structuring. It was noted that the City has not been budgeting for capital improvement items, such as truck and equipment replacement, and this is an opportunity to make dollars available for this purpose without increasing the tax levy prior to debt refunding over what had been planned for. The Administrator presented a graph comparing the City's 1993 tax and 1994 tax on various valued homes in the City. The average home value in the City is $90,600. The 1993 City tax for a$90,600 valued home was $220.08, and for 1994 is projected at $225.43. The Administrator pointed out that even though the City is levying a zero percent increase, there will be a 2.43% increase due to the reduction in property values on a City-wide basis. The next graph was a comparison of the City's tax on commercial/industrial properties. The Administrator pointed out that the State changed the class rates for commercial/industrial properties and increases in taxes for these properties range from 2.43% on a property valued at $100,000 to .32% on a property valued at $2 million. The Administrator reported that a requirement of Truth In Taxation is to review compensation for both full-time and part-time employees. The Administrator reported that in 1992 220 of the General Fund Budget was due to salary expense, it is estimated that for 1993 that amount will be 21.2%, and 21.8% for 1994. With regard to the Cable TV budget, which is supported by franchise fees not property taxes, that expense was 23.6% for 1992, 28.1% for 1993, and 29.2o for 1994. Salaries associated with the Water Budget were 15.9% for 1992, 15.3% for 1993, and estimated at 15.7% for 1994. For the Sewer Budget salaries in 1992 were 20.3% of that budget, 19.3% estimated for 1993, and 17.7% for 1994. Total salary percentages are 10.2% for 1992, estimated at 12.1% for 1993, and 8.5% for 1994. The Administrator then reviewed number of employees by classification reporting that there were 11 full-time employees in 1992 and 94 part-time. In 1993 there were 11 full-time employees and 75 part-time, and estimated Page 5