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MINUTES <br />CITY COUNCIL <br />NOVEMBER 14, 2007 <br />be determined and budgeted for within the General Capital Improvement <br />Fund. <br />Blesener also noted the need for a new Public Works Garage, pointing out <br />that this would be another use of surplus funds. <br />The Director continued her review of the Capital Improvement Budget, <br />reviewing the 10% Fund, Infrashucture Fund, Water/Sewer Capital <br />Replacement Fund, and Parkland Acquisition Fund. <br />The Director reviewed Exhibit A which depicted possible levy scenarios, <br />highlighting the 4% net levy increase that was utilized for the preliminary <br />2008 Budget adopted in September. The Director again pointed out that a <br />4% net levy increase is a 6.03% gross levy increase. The Director <br />reminded the Council that the preliminary levy factored in a usage rate of <br />32% of 2008 LGA which results in an anticipated surplus of $153,078. <br />She indicated that with some adjustments made to the General Fund since <br />the preliminary Budget adoption, the revised surplus is at $409,000. <br />Blesener again noted that these are one-time monies, therefore, should not <br />be used to buy down the levy. The Director noted that the 2007 Budget <br />surplus is anticipated at $94,000, and based on the City's Fiscal Policy <br />would be utilized for Capital Improvement items. <br />Allan stated that she supported the net levy increase remaining at 4% as <br />was certified for the preliminary levy. <br />McGraw asked if the Council decided to allocate surpluses toward the <br />purchase of a future fire truck or construction of a new Public Works <br />Garage, if future Councils could change that decision. The City <br />Administrator replied that future Councils could use the money in another <br />fashion. <br />Blesener pointed out that factoring out one-time money that was used to <br />buy down the levy, the City is anticipated to have a $29,000 surplus on a <br />$2 million levy. He felt that these was very close budgeting. <br />The City Administrator again pointed out that when one-time money is <br />used to buy down the levy, that practice has to continue or else the City <br />would have to make up the difference additional levy dollars. The <br />Director also noted that not becoming dependent on one-time dollars <br />avoids significant levy fluctuations. She noted that Little Canada's levy <br />has been pretty stable. <br />6 <br />