12-19-2012 Council Minutes - Laserfiche WebLink

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MINUTES CITY COUNCIL DECEMBER 19, 2012 regard to the Water Budget, St. Paul Regional Water is increasing its water rates by 6.66 %. As part of a preliminary review of the Water Budget, it appears the City will have to pass on this rate increase to customers. The Administrator noted that it does not appear the City will have to increase sewer rates given the City's cost of treatment has dropped as our percentage of flows has dropped. The Administrator noted that the Water & Sewer Capital Improvement Budget includes $2 million for a new Public Works facility. This has been a longstanding goal of the City, and the Administrator pointed out that the right sight for this facility is being explored. The Administrator reported that the City will likely bond for this project given the low interest rates. I- Iowever, the bond would not create a levy, as it would be paid by annual depreciation from the water and sewer funds. The Administrator pointed out that another issue that will be explored in more depth during 2013 is that of excess Tax Increment Financing (TIF) dollars that are being generated. It is projected that the City will accumulate over $30,000 in excess TIF dollars during 2013, and staff is proposing that these dollars be tracked separately from typical property tax collections. Staff is currently directing these dollars to the General Capital Improvement Fund, based on the City's financial policies that are in place. The Administrator indicated that ultimately these dollars will go away; therefore, he did not recommend utilizing them as General Fund revenues. The Administrator reported that City staff has developed a new baseline by which to project building permit revenue. He noted that the City has always budgeted this revenue conservatively, but given the fact that the City is fully developed, it is apparent that an even more conservative approach is needed. Blesener pointed out that the proposed 2013 Gross Tax Levy is $2,712,964 which represents an increase of $52,000 over 2012, or a 1.97% increase. There was no one from the general public present wishing to comment on this matter. McGraw pointed out the City's efforts to eliminate reliance on Local Government Aid (LGA), and pointed out that for a number of years the Council and City staff has reviewed each budget line item to make cost saving adjustments. McGraw did not feel it was possible to make any more cuts in the budget, and felt that for the coming year the focus should be a general review of how the City runs. McGraw felt that the Council and Staff should look at possible ways to reallocate resources or reorganize how City employees are utilized. This should include a review 7