09-14-11 Council Workshop Minutes

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MINUTES CITY COUNCIL SEPTEMBER 14, 2011 The Administrator felt a 0% gross levy increase was prudent, and he cautioned the Council on making deeper cuts. Blesener pointed out that any budget surpluses the City has go to the Infrastructure Fund which is used to purchase equipment and other capital items that the City needs foregoing the City need to bond for these items. The Administrator agreed. He noted that there is a small tax levy that supports the Infrastructure Fund, and the amount of that levy has stayed constant. Any surpluses from the General Fund go to support the Infrastructure Fund. Blesener pointed out the three 2012 Budget scenarios before the Council, one proposing total reliance on LGA resulting in a 2.26% decrease in the gross levy, one proposing partial reliance on LGA resulting in a 0% gross levy increase, and one proposing no reliance on LGA resulting in a 5.29% increase in the gross levy. The City Administrator noted that once the preliminary levy amount is set, the City cannot go any higher for the final levy which would be adopted in December. Keis asked what further impacts the State could have on the City's LGA. The Administrator pointed out that the State could eliminate the $195,843 in LGA it has certified for 2012. The Administrator noted the changes in MVHC resulted in a negative impact to the City of $109,000. The Administrator felt that the 2012 Budget put together by the Finance Director did a good job of anticipating State impacts, and felt that the 0% gross levy proposed resulted in a manageable budget for the City. The Finance Director reported that the Fire Department has proposed a decrease in their 2012 Budget due to a decrease in anticipated repair work as well as the fact that some capital items have been transferred to the City's General Capital Improvement Budget. The Director noted that this takes out some of the volatility in the Fire Department budget and stabilized the City's General Fund. The City Council expressed their appreciation for the work the Fire Department did on their budget. The Administrator noted the increase in animal control costs is the result of the Sheriff's Department taking over this function, and includes start -up costs that should not carry forward in future budget years. He also noted that the County's parks will be included in the Sheriffs Department animal control coverage, thus spreading costs over a larger base. The Sheriff's Department expects to hire an experienced animal control officer on a full -time basis and supplement staffing with CSO's. This change is primarily the result of the current animal control provider changing career direction. There was also some discussion about the cost of fuel for City Parks and Public Works vehicles, and efforts to keep these costs down. City staff is 5