09-08-10 Council Minutes - Laserfiche WebLink

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MINUTES CITY COUNCIL SI;PTEMBI;R 8, 2010 Blesener noted that the Finance Director presented four levy scenarios, one fora 0% gross levy increase, one at a 3.94% increase, one at a 5.98% increase, and another at 13.80%. Blesener pointed out that the difficulty in setting the levy amount is that the City is unsure as to how much Local Government Aid (LGA) and Market Value Homestead Credit (MVHC) the State will unallof in order to solve their budget deficit. The City Administrator reported that if the State cut all its aid to the City, a 15% gross levy increase would be needed in order to retain the budget as proposed and replace the aid that was cut. Montour noted that the preliminary budget presented this evening proposed a .O1% increase in the General Fund or $333 more than the 2010 Budget after the adjustments that were made earlier this year. 1'he City Administrator pointed out that that proposed budget includes $109,000 as an annual budget item to provide for long-term funding for fire equipment replacement. Montour asked if the City can designate a special levy amount for this purpose. The Administrator replied that it could, but it will not make a difference on property tax statements. Blesener stated that he supported a 3.94% gross levy increase for the preliminary levy, which provides a cushion fora 42% reduction in State aids. Keis stated that he would support a gross levy increase for the preliminary budget in the neighborhood of 5% with the goal to reduce that amount over the next three months. Montour stated that he supported the scenario of a 5.98% gross levy increase at this time. Montour agreed that between now and the time that the fina12011 Budget is adopted in December, the Council would work toward reducing that increase. It was hoped that There would be more information available by December relative to the potential State actions with regard to aids to cities. McGraw indicated that the danger insetting the preliminary levy too low is that the City cannot exceed that amount in adopting its final budget. McGraw pointed out that this is an election year, and hoped that the City would have more information relative to State aids after the November election. McGraw also felt that the next three months should be used to review the proposed 2011 Budget to determine if there are areas that can be cut. Boss agreed that a cushiou should be provided in adopting the preliminary levy amount with the Council working to reduce the budget between now and December. Mr. Montour introduced the following resolution and moved its adoption: RESOLUTION NO. 2010-9-213 -CERTIFYING THE 2011 PRELIMINARYLEVYAT $2,712,646,A 5.98% GROSS LEVY INCREASE, AND $2,337,529, A 5.60 % NET LEVY INCREASE 13