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MINUTES <br />CITY COUNCIL <br />SEPTEt4BER 9, 1996 <br />The Administrator felt the logical time to buy down the <br />$24,775 is when the debt levy drops. Fahey agreed <br />pointing out that if the City waits until 2000 when <br />bonds are paid off, the effect will be nil. <br />The City Administrator recommended the $24,775 be <br />carried over for the 1997 budget. <br />The Administrator pointed out that the budget as <br />submitted results in a 3.78% net levy increase. It <br />will take approximately $12,000 in budget cuts or <br />revenue increases to drop the levy by each 1%. To <br />reduce the net levy increase to 3.5% would require <br />$3,200 in expense cuts or revenue increases, 3.0% would <br />be $9,200, and 2.5% would be $15,000. <br />Pedersen suggested that money from the Parks & <br />Recreation Special Fund could be used toward general <br />fund expenses, such as field maintenance. Morelan <br />suggested these funds, or perhaps the Cable TV Fund, <br />could be used to subsidize the Day Camp Program, for <br />example. <br />The Administrator indicated that he would like to see <br />Parks & Recreation Special Funds used for a one-time <br />cost, otherwise the City would be using surplus funds <br />toward an on-going expense. The City Administrator <br />also reported revenue accrued in the Cable TV fund for <br />one year is not received until the following year. <br />Therefore, the fund is not in a good cash-flow <br />position. <br />Scalze pointed out that some other cities fund <br />community services from their Cable TV budgets. Scalze <br />suggested perhaps some of these funds could be used to <br />support the City's newsletter. <br />The Administrative Assistant reported that the Cable <br />Commission has questioned the practice of various <br />cities' use of Cable TV franchise fees for purposes <br />other than Cable TV-related business. Applications for <br />grant monies have been scrutinized with these practices <br />in mind. <br />Fahey asked the Administrator his recommendation for <br />the preliminary net levy amount. <br />The City Administrator felt there were some things that <br />could be done to reduce expenses or increase revenues. <br />The Administrator indicated that while 2.5% would make <br />him nervous, he felt 3.5% or 3.0% would be possible. <br />8 <br />