09-11-2013 Council Workshop Minutes

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MINUTES CITY COUNCIL SEPTEMBER 11, 2013 has about $1 million in project costs planned each year, with a couple of years higher than that amount. He noted the need to plan for larger projects such as the Rice Street Phase II project. With regard to Water & Sewer Capital Replacement, the Administrator noted the impact of the Public Works Garage project on that account. The Administrator indicated that he would include an article in the next City newsletter regarding this project, and the City's preferences for financing this project. That article will be submitted to the Council for review prior to publication. The Administrator briefly reviewed 'Fax Increment Financing Funds, including TIF 6 -1 Pinetree Ponds and the need to create a TIF District for the Owasso /Woodlyn Redevelopment Project. The Administrator noted that at its regular meeting this evening, the Council is being asked to set the 2014 Preliminary Levy amount, with staff recommending a Gross Levy of 3 %. It was noted that once the Preliminary Levy is established, the Council can decrease the Final Levy amount but cannot increase it. Blesener pointed out that due to the impact of Fiscal Disparities, a 3% Gross Levy results in a 1.84% Net Levy. Montour stated that he supported the 3% Gross Levy for the Preliminary Budget. He noted that General Fund expenses are projected to increase by 3 %. Montour also pointed out the article in the newspaper that Ramsey County is proposing a 0% Gross Levy increase, but noted that the County is increasing its reliance on State Aids to achieve the 0% increase. Montour stated that his goal would be to try to decrease the final levy, if possible. Reis stated that he supported a 3% Gross Levy increase for the preliminary levy and agreed that the goal would be to try to achieve a decrease in that amount for the final levy. Boss also indicated support for the 3% Gross Levy increase for the Preliminary Budget. Blesener pointed that the City's goal has been to eliminate reliance on LGA. He indicated that in the future if it appears that this aid is more stable, perhaps that goal can be modified. He noted, however, that at times of State budget crises, the State has looked to LGA dollars to address its budget problems. Montour noted that while the City has increased the dollar amount of LGA reliance in the General Fund, the percentage that is being used is actually less. The Administrator pointed out that the majority of LGA dollars are used by the City for one -time capital expenditures. Therefore, these LGA dollars do provide tax relief for Little Canada property owners. The Administrator indicated that staff will continue to refine the proposed budget, and noted that there will be additional discussion this fall to review the budget in preparation for adoption in December. 7