09-08-10 Council Workshop Minutes

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MINUTES CITY COUNCIL SEPTT;MBER 8, 2010 expenditures to increase by 2.86%, and Insurance costs to decrease by 11.57%. The costs of operation for the City Center are projected to decrease by 2.06% and the Old Fire Hall to decrease by .92%. Police expenses are projected to increase by 3.73%. The Director noted that adjustments were made relative to the Sheriff's Contract in early 2010 in response to additional aid unallotments at that time. Those adjustments are reflected in the 2011 Police expenditures. Keis noted that the City has no control over the cost of dispatch, and asked what could be done to reduce this expense. The City Administrator reported that a reduction in calls for service would result in the City's share of the cost of police protection allocated between the contracting cities being reduced. The Director continued her review of General Fund expenditures noting that Fire Marshal expenses are projected to decrease by 11.06% given the adjustment that was made in early 2010 to a contracted service basis. Protective Inspection costs are projected to decrease by 2.50%, Emergency Services cost to decrease by 7.73%, and Animal Control costs to increase by 16.07%. This increase is attributable to continued goose control efforts. The Director noted that the Streets expenditures are projected to decrease by 8.77% given a reduction in sweeping and seal coating costs. Storm Sewer expenses are projected to decrease by 15.96%, Street Lighting to decrease by 2.38%, Recycling/Sanitation to decrease by 3.26%, and City Garage expenses to increase by 1.57% The Parks & Recreation expenditures are projected to increase by 1.19%, Community Service to decrease by 1.38%, and Shade free expenses to remain the same. The Director indicated that overall General Fund expenditures are projected to increase by .O1 Based on Ueneral Fund revenue and expenditure projections, the Director pointed out that a $179,778 surplus is projected. That amount provides the City a 42% cushion to absorb 2011 LGA and MVHC unallotments. The Finance Director then reviewed in detail four levy scenarios which include a 0% Gross Levy increase, a 3.94% Gross Levy increase, a 5.98% Gross Levy increase, and a 13.89% Gross Levy increase. The Director noted that if State aids were cut completely, a 14.75% Gross Levy increase would be necessary to maintain the budget as proposed without additional cuts. The issue before the Cowicil is what to certify the 2011 preliminary levy. Once the preliminary amount is established, the City cannot exceed that amount in adopting the final levy amount. "I hat will occur in December of this year. The City Adminish•ator pointed out that the State is facing a $6 billion deficit, so it is fairly certain that aid unallotments will be used by the State to balance their budget. "the Administrator reported that the League has 3