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MINU7'~S <br />CITY COUNCIL <br />SGPT~MQGI2 2, t998 <br />no insw'~nce dividend this ye~r due to the storm damage that occurred <br />over the s~~mmer months. <br />F~hey pointed out~ t~h~t in the year 2000 the City's tlebt levy decreases by <br />$256,000 and s~ig~ested th~~t for 1999 it would be besY to minimize any <br />inerease in tl~e net levy. P~~ihey supported the two of the options for a buy- <br />down out~lined in the Administrator's men~io - tl~e use of 1998 surplus <br />ftinds and the use of'1VISf~ fiinds. "I'hese two options provide $50,000 <br />towlyd the $63,000 ChaY is needed to achieve 2 zero percentage change in <br />the net levy. Fahey stated that he would Iil<e to avoid a 5% increase for <br />1999 ~nd Chen ~ drop in the levy for the year 2000. <br />Scalze agreed. Morelan agreed it wo~ild not be wise to hlve an increase in <br />the net IEVy for 1999 and then a reduction Por the ycar 2000. Morelan <br />agreed th1C ~ zero perceiitl~e chan~e sho~ild be the Cow~ciPs goal, but <br />indicated thtit he was not sin'e that usins~ the 1998 btiid~et s~u~plus or MSA <br />ftuids was the w~ty t~o go. Morelan felt that first a close (ool< should be <br />tal<en at revenues and expendit~ues. After that review iPthere are <br />aclditional dollars needed to buy down tl~e levy, the debt levy red~icYion <br />should be used. <br />Morelan indicaCed that he was conceri~ed 2bout allocating al( the MSA <br />dollars into the General Fund fi~orn a policy standpoi~~t. These dollars ~re <br />intended to maintlin existing infi astructure and for reconstruction <br />expenses. Currently hialfthe MSA funds <u~e alloc~Ced toward the day-to- <br />d~y mainten~nce ol'inli~astructure, and the other hali~goes tow~rd the <br />In1'r~str~icture Replacement P~md. Morelan felY t~his was a good mix, and <br />did not agree with ~Ilocatin~ all the MSA dolilis toward day-to-day <br />^1EUt1tEI1111CC. <br />Fahey felY th~t this <~Ilocation oi'MSA dolllrs to the Gener2l Tund could <br />be done for one ye~u in order to buy down the (evy to a zero percentage <br />ch~n~e. Fahey again pointed ouf that in t~he year 2000 the City's debt levy <br />dea~e~se~ by $256,000 and some of these doll~rs co~ild then be reallocated <br />to the General Pund. <br />Scaize pointed out that buying down Yhe debC levy is essentially borrowing <br />fiom tlie debt levy reduction th~t will occur in the year 2000. Scalze felt <br />this made less sense from a fiscal stantlpoint. <br />Morelln poinYed out ChaC the Infi~astruct~n~e Replacement Fund needs a <br />revenue so~u'ce and iPihat source is not MSA fwids the funds will lil<ely <br />come fi~om the debt levy reduction. <br />~ <br />