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MINUTES <br />CITY COUNCIL <br />SEPTENiBER 7, 1995 <br />$5,000. <br />The Administrator pointed out that another option is <br />changing the assumed collection percentage for the <br />General Fund from 97~ to 97.5%. This would reduce the <br />levy by $6,308. <br />Fahey felt it was more consistent with conservative <br />accounting practices to keep the collection rate at <br />97%. <br />Morelan pointed out that the City has experienced a <br />budget surplus the past few years, and an increase in <br />the collection rate would temper that surplus amount. <br />Fahey did not feel a$14,000 surplus was large given <br />the total size of the budqet. <br />The Administrator stated that he hopes the surplus is <br />higher and pointed out that he has not received <br />information from the League of Minnesota Cities <br />Insurance Trust on the amount of dividend that the City <br />will collect in 1995. This information is not <br />available until December, therefore, is not included in <br />the budget. <br />Fahey pointed out that the City can certify the <br />preliminary levy at 4.59% and then decrease the final <br />Budget amount. However, this might unnecessarily upset <br />some property owners. <br />Morelan indicated that he was not comfortable with the <br />4.59% figure, and would rather see a maximum of 3.5%. <br />Morelan pointed out that the 3.5% figure is closer to <br />the CPI increase, therefore, purchasing power of <br />residents should not be affected by the increase. <br />The Administrator pointed out that another option would <br />be to increase some license fees. The Administrator <br />presented information on fees associated with on-sale <br />liquor and wine licenses, noting that the on-sale <br />liquor license fee has not been increased since 1982. <br />The Administrator pointed out that from the survey on <br />on-sale liquor fees, a fee of $4,000 appears to be more <br />representative. Given this would be a dramatic <br />increase over the current fee, staff is recommending <br />that the increase be phased in in $500 increments over <br />the next three years. A public hearing would be <br />necessary to increase liquor fees. <br />Scalze did not believe the increase was large given <br />that there has been no increase over the past 13 or 14 <br />3 <br />