09-13-06 Council Workshop Minutes

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MINUTi/S CITY COUNCIL SI/PTI;MBIrR 13, 2006 seal coating. Street sweeping costs are also anticipated Co be $2,000 higher than in 2006. The Director noted that street lighting cost is up due to fuel adjustments, the City's electrical franchise fee, as well as some additional street lights. Recycling expenditures are up given the City will conduct a clean up day during 2007. The Finance Director again noted that clean up day expenses and election expenses will be balanced between the odd and even budget years. The Director finished her review of General Fund expenditures, reviewing City Garage, Parks & Recreation, Community Services and Shade Tree expenses. The Finance Director then reviewed options and opportunities for reducing the City's levy as outlined in her September 9, 2006 report. She noted that staff reviewed the cuts it would take to reduce the levy to 4.5°l0, 4.0%, and 3.5%. In addition to the options identified in the budget memo, some additional options would be increase the anticipated tax collection rate from 97.5% to 98.5%, reduce the City Engineer expense to zero, reallocate of the cost of a sheet employee to the Water & Sewer Fund, and implementation of an administrative fine program. The City Administrator reported that the contracting cities are currently discussing the administrative fine program with the Sheriff's Deparhnent. This program would implement administrative fines for parking violations and minor moving violations rather than processing such violations through the courC system. Fines would be lower than the typical court fines, and cities would be able to keep a greater percentage of the fine revenue. The City of Mounds View has implemented such a program and, while controversial, it is generating revenue for Che city. The Administrator indicated that this matter will be brought back to the Council for consideration once discussions with the contracting cities and Sheriff's Department are completed. The Administrator noted that the Sheriff's Department supports the implementation of administrative fines, and the program results in Cougher enforcement. The Finance Director indicated thaC the four options listed above would cut $44,350 from the City's levy, and a reduction of $43,950 would bring the levy increase to 4.5%. An additional. $9,650 reduction would be needed to lower the levy each''/z%. Another option would be to allocate the cost of the Lino Lakes crew to capital funds. Blesener noted that the Council will have to set the preliminary 2007 Budget levy this evening, and the level that is set is the maximum that the City will be allowed to levy. Blesener stated that he was supportive of a