11-09-11 Council Workshop Minutes

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MINUTES CITY COUNCIL NOVEMBER 9, 2011 results. The first modification is net increase of $39,144 in estimated gross revenues to $3,045,961. Improved interest earnings, building permit revenues, and billing services added revenues, while estimated revenues for fines and administrative charges were decreased. General Fund estimated expenses were increased by $7,697 to $2,915,331 due to a number of factors, the largest of which was an increase in parks grounds maintenance due to repairs needed to correct damage to the Pioneer Park warning track because of heavy rains. The Director reported that based on these modifications, the anticipated surplus for 2011 increases from $97,733 to $125,180. The Director reported that based on the City's policy, if this surplus is not used within the General Fund, it will be transferred to the General Capital Replacement Fund. She noted that the City is slated to receive $195,843 in Local Government Aid (LGA). If those funds are not received, surpluses will make up the difference the resulting loss of revenue to the General Fund. The Director next reviewed the 2012 General Fund proposed budget. Since the September meeting at which the Council adopted the preliminary 2012 Budget, projected gross revenues are projected to drop by $4,047, which includes an increase in projected interest earnings, a reduction in anticipated find revenue, a reduction in reimbursable Building Official costs, and other minor adjustments. Expenses are anticipated to decrease by $14,395. Most expense adjustments are minor in nature with the once exception being a reduction in sealcoating costs of $13,800 given modifications to be made in the City's sealcoating program. The Director indicated that based on these actions, the anticipated 2012 surplus increases from $58,823 to $69,171. Combined with 2011, the available surplus is projected at $196,151, which can then be used to lessen any impact to LGA. The Director noted that the City will certify its 2012 levy prior to receiving LGA. Therefore, any surpluses the City has will be needed to offset any reductions that the State may make to LGA. Blesener noted that if the State does not reduce the amount of LGA it has indicated that Little Canada will receive, any budget surpluses will go to the Capital Improvement Fund. The Director replied that this is correct. McGraw noted that the State has indicated that it will give Little Canada $195,843 in LGA. The Director pointed out that at one point the City was slated to receive $324,000 in 2011, but that number was reduced to $195,843. That State has indicated that 2012 LGA will remain at the 2011 number. The Director then reviewed in detail the City's capital funds. She began with a review of the Infrastructure Fund and the streets being considered for improvement in 2012. In addition to those streets, the Director pointed out other 2012 projects being considered which include parking lot and trail improvements, burying of powerlines on Rice Street from County Road B -2 to Little Canada Road, and Little Canada Road improvements from Edgerton to 2