09-10-2012 Council Workshop Minutes

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MINUTES CITY COUNCIL SEPTEMBER 10, 2012 works noting that the City is a contributor to the pool and would have a larger tax value to work with if it did not have to participate in Fiscal Disparities. The Administrator also pointed out that it is the Gross Levy percentage that is referenced in the media in comparing taxing jurisdictions. The City Administrator reported that the preliminary 2013 Budget document before the Council this evening proposes a .75% Gross Levy increase and after factoring out the decrease in the City's Fiscal Disparities allocation, the result is a 2.02% Net Levy increase. The Administrator then reviewed the General Fund Revenue summary, noting that revenues are projected to be up by .01% ($344). He proceeded to review in detail the specific Revenue categories. Property Tax revenue is projected to increase by .59 %. Licenses & Permits to decrease by 1.01% with the Administrator noting that revenue from Rental Housing Licensing is budgeted at $0 given the City's intention to re- evaluate this program in its fourth year. Intergovernmental Revenue is projected to increase by .86 %, while the County Recycling Grant Revenue decrease by 2.56 %. Charges for Service Revenue is projected to decrease by 16.35 %, while Fine Revenue increases by 1.46 %. Miscellaneous Revenue is projected to increase by 3.43 %. Thus the total General Fund Revenue increase projected at .01%. The Administrator then reviewed the General Fund Expenditure summary, noting an estimated increase in expenditures of 2.35% ($70,379). He reviewed the detail of the specific Expenditure categories. He noted that expenditures allocated to Mayor & Council are projected to increase by 3.72 %, Election expenditures to decrease by 79.21% given there is no General Election in 2013, Administration expenditures to increase by 6.68 %. With regard to personnel costs, the Administrator noted that a 2% salary scale increase has been budgeted for 2013, and also noted that 2013 wages were reallocated back to the General Fund from the Recycling & Disposal Fund. Health insurance costs will also increase by 8.5 %. The Administrator indicated that 2012 Budget expenses may not reflect payment for interim finance director services. He indicated that he would modify 2012 Budget expenses accordingly, if necessary. The Administrator pointed out that Attorney expenditures are estimated to decrease by 3.09 %, Engineer expenses to increase by 4.81 %, Planning expenses to increase by 3.74 %, and Insurance expenses by 23.86 %. The Administrator explained that a LMCIT rate increase for liability insurance is anticipated to be $9,691 due to a new rating formula. The Administrator explained this rating formula and indicated that, in his opinion, the new formula was more equitable. The Administrator reported that City Center expenditures are projected to increase by 21.26% with the majority of this increase due to utility expenses. Expenses at the Old Fire 2