09-13-06 Council Workshop Minutes

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MINUTES CITY COUNCIL SEPTEMBER 13, 2006 radios will increase 180% Co $1,440 in 2007. This equates to 12 months of usage during 2007 compared to four months in 2006. Morelan reported that the Fire Department adopted additional training requirements for Fire Department officers in 2004 for implementation in 2007. Outside training costs are projected to exceed the 2006 budgeted amount by 26%, and the 2007 outside training budget is proposed to increase by 25.2%. Morelan indicated that Che initial 2007 Fire DepartmenC Budget represented a 17% increase over 2006. However, the Board of Directors worked hard to reduce that increase. Blesener noted that the Fire Department Budget represents 11% to ] 2% of Che City's levy. While this is a big number, Blesener acknowledged the service provided by the Fire Department. The City Administrator indicated that he discussed the Fire Deparhnent's obtaining a quote for insurance from the League of Minnesota Cities with the Fire Chief. The Fire Department agreed to obtain a quote in the hopes that the League can provided less expensive insurance coverage to the department. The Council thanked Morelan for his presentation. The Finance Director presented the proposed Preliminary 2007 Budget and began a detailed review of the document. The Director noted that the gross levy is projected to increase by 7.54% from 2006 to 2007 based on a gross levy amount of $2,350,207 compared to $2,185,498. The net levy is projected to increase by 7.92% based on a net levy amount of $2,104,387 in 2007 compared to $1,950,033 in 2006. The Director pointed out that the City's Fiscal Disparities distribution has increased by $10,355 while Little Canada's Tax Capacity has grown by over 7% based on the preliminary numbers submitted by the County. Little Canada's Tax Rate will increase from 21.373°Io to 22.283% in 2007 representing a 4.26% increase. The Director noted that staff has implemented the levy for the City's Infrastructure Fund based on the amount originally recommended by the Debt Levy Reduction Committee. That amount is $157,200. The levy for the General Capital improvement Fund represents the Debt Levy Reduction Committee's recommendation less additional estimated interesC earnings aCtributable to the new reserve policy. The Director also noted that Che General Fund levy is proposed to increase by 8.45% ($2,156,007 in 2007 versus $1,987,996 in 2006). 2