09-14-11 Council Workshop Minutes

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MINUTES CITY COUNCIL SEPTEMBER 14, 2011 time nature of these positions, there will be no health insurance costs associated with these positions. Blesener asked if dollars has been budgeted to address the emerald ash tree borer. The Director reported that the Shade Tree Fund had been increased from $8,500 to $15,000. She suggested if that funding level is not sufficient, the Infrastructure Fund may be another revenue source. Blesener asked about funding for the reopening of the Demont Rink. The Director pointed out that reopening the rink would decrease the surplus for 2011. She further noted that it would be possible 2012 Demont Rink costs and still keep the gross levy at a 0% increase. At this point, the Director reviewed the City's various capital project funds which include the Parks & Recreation Special Fund, Cable Fund, General Capital Improvement Fund, 10% Fund, and Infrastructure Fund. The Director indicated that another Budget workshop will be held with the Council this fall prior to final 2012 Budget adoption. She then noted that the Water, Sewer & Trash Fund are not included in this document, and any increase or decrease in water and sewer rates will be dependent on final rates from St. Paul Regional Water Services and Metropolitan Council Environmental Services. The Director reported that a recommendation on 2012 water and sewer rates will be presented to the Council after the first of the year. Blesener noted the 2010 and 2011 Budget surpluses, pointing out the City's policy to transfer these to the General Capital Improvement Fund. The Director noted that the transfer of these surpluses into this fund helps to address the City's equipment needs. The Director pointed out that there is some levy support for the General Capital Improvement Fund, but it has had the advantage of this surplus transfer support in years where building permit revenues, interest earnings, etc. have been higher than expected. Montour asked about the increase in revenues budgeted under the 3899 Miscellaneous category. The Director noted that while a drop in interest rates is anticipated, interest earnings are anticipated to decrease, but the City's earnings on Interfund Loans will provide a better rate of return. Montour asked where revenues from the electric franchise fee are allocated. The Director reported that these revenues go to the Infrastructure Fund. She noted that expenses to the Infrastructure Fund are expected to increase over the next few months as the cost of burying powerlines will be allocated to this fund. The Director then reviewed the elimination of the Market Value Homestead Credit (MVHC) and the conversion of this credit to a value exclusion that creates property tax relief for lower valued homes. She 3