09-13-06 Council Workshop Minutes

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MINUTES CITY COUNCIL SEPTEMBER 13, 2006 The Director then reviewed General Fund revenues in detail. The highlights of Chat review include a projected increase in revenue from liquor licenses based on the Council's decision to Cie license fee increases to the City's net levy percentage. Anticipated revenue increase is $1,333. The Director pointed out that the practice of conservatively budgeting building permit and plan check fee revenue in the BudgeC has continued with this document. Anticipated revenue increase is $10,500. The Director explained the history of the State's reduction to the City's Market Value Homestead Credit and Little Canada's decision to implement an electric franchise fee to offset this cut. She noted that, as of this time, the State will not cut the 2007 Market Value Homestead Credit. Therefore, anticipated revenue is $98,311. The Director anticipated an increase in Fines and Forfeits Revenues of $500. The Director noted that subsequent to adopting the 2006 Budget, the City adopted a new reserve policy that shifted substantial fund balances from the General Fund to the General Capital Improvement Fund. This has impacted interest earnings in these two funds. The impact on the General Fund is estimated at $32,500 for 2006 and $27,500 for 2007. The reserves transferred from the General. Fund in 2005 and 2006 to the General Capital Improvement Fund exceed $1,000,000. The earnings shift is estimated at $50,000 for 2007. Therefore, the 2007 General Capital Improvement Fund levy was reduced by $50,000. Net impact to revenues is estimated at ($27,500) for 2007. The Director also noted that the reimbursement for 2007 Building Official services is anticipated to be $38,884 resulting in increased 2007 revenues of $1,513. The Director next highlighted General Fund Expense considerations. She noted a modest increase in League of Minnesota Cities dues of $501. The Director noted thaC there will be no Federal, State, or Local elections during 2007, therefore, impact to the 2007 Budget is ($1,326). This is partially offset by the $5,000 budgeted for the City's clean-up day event which has now been planned for odd years Co balance these two evenCS for budgeting purposes. The Director noted that Legal Fees are projected Yo increase by 4.48%. The Civil Retainer is proposed to remain at the 20061eve1. The Prosecution Retainer is proposed to increase by $200 per month. Gross Misdemeanor Prosecutions, Forfeitures, and advanced costs are proposed to increase by $4,250. Impact to Legal expenditures is an increase of $6,650.