09-09-09 Council Workshop Minutes

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MINUTES CITY COUNCIL SEPTEMBER 9, 2009 tax base, increase in fiscal. disparities, and decline in tax increment, the impact to the City's taxable valuation is a decrease of 3.51 The Director also pointed out that Local Govermnent Aid unallotments, LGA formula loss, levy limits and the effect of the recession on City revenues are factors impacting both the 2009 Budget and 2010 Budget. The Finance Director began with a review of General Fund Revenue. She noted that revenues other than taxes are down by 14.12%. She pointed out that for 2010 there is new revenue of $20,000 for multi-family housing licensing fees. The Director then reviewed Intergovernmental Revenue, noting that while Market Value Homestead Credit is up, Local Government Aid is down. Municipal State Aid is also up due to the gas tax increase. All eligible MSA maintenance dollars will be placed in the General Fund. "I'he net result of estimated Intergovernmental Revenue is a decrease of 38.59%. With regard to Local Government Aid, the Finance Director presented information on recent LGA history for 2008, 2009, and 2010, noting the significant unallotments by the State each of these years. The Director then reviewed Charges for Service revenue pointing out that staff is proposing a more aggressive approach in charging for Tax Increment Financing administration. Charges for Service revenue is projected to increase by 37.08%. The Director noted that Fine revenue remains the same as in 2009. With regard to Miscellaneous revenues, the Finance Director noted that interest earnings are projected lower in 2010. However, total revenues in this category are project to increase by 3.25%. The Finance Director noted that total 2010 General Fund Revenues a~•e projected to decrease in 2010 by -0.67%. General Fund Expenditures were reviewed next. "the Finance Director began by reviewing Mayor & Council expenditures, which are projected to increase by 0.28%. She noted that the City has implemented a wage freeze for 2010. Only employees who are due to receive step increases will see salary increases. F.,lection expenditures were next reviewed, with a substantial increase given 2010 is an election year. In reviewing Administration expenses, the Finance Director noted an increase of .28%. She pointed out that the increase for employee health insurance came in lower than expected at 3%. In continuing on with a review of General Fund Expenditures, the Finance Director noted that Attorney expenses are projected to remain constant 3