11-23-09 Council Workshop Minutes

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MINUTES CITY COUNCIL NOVEMBER 23, 2009 use surpluses or reserves, but again cautioned that this is one-time money. The Administrator also pointed out the potential for eliminating the extra policing at Montreal Courts apartments. He further noted that should the market improve, the City will not be required to contribution additional dollars to the Fire Relief Fund in 20I 1. The Administrator also expressed concern about future building permit revenue as well as interest earnings. These are two areas that may result in increased revenues should market conditions improved. McGraw noted the potential that unallotments will continue given the State's budget situation. He was also concerned about future building permit revenues. McCn•aw stated that he did not support the use of reserve dollars to buy down the levy given these are one-time funds. McGraw agreed with the City's approach for slow and steady levy increases so that property owners are not Faced with substantial increases at one time. He also noted that the City has no control over limited market values which impact its tax rate. "The Council discussed whether or not the extra policing at Montreal Courts apartments should be retained. It was noted that there has been a 6% reduction in the total time spent on police calls at Montreal Courts, although the number of calls at a couple of the buildings have actually gone up. Blesener felt that the extra policing should be kept for at least one more year, noting that if additional LGA unallotments become a reality, the policing could be eliminated mid-year. It was also noted that Montreal Courts is conducting better tenant screening. There is also the potential that Vadnais Heights may wish to share in the extra policing by expanding the program to the apartments on County Road D. The consensus was to retain the extra policing at this time. The City Administrator asked the Council's position on the use of the $8,702. Keis stated that he supporCed using these dollars to reduce the gross levy increase to 3.41 Montour asked about the estimated surplus in the 2009 Budget. The Finance Director indicated that the surplus could be used for further levy reductions or as a contingency plan should additional unallotments occur. She pointed out that this is one-time money. McGraw asked for an explanation of the City's need for reserve funds. The Finance Director explained that the City retains 42% of its projected expenses in reserves. The State Auditor recommends that cities reserve between 35% and 50% of current expenses. Given the timing that the City receives tax collections from the County, reserve funds are used to finance the first six months of expenses. 4