09-08-2010 Council Minutes - Laserfiche WebLink

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CITY COUNCIL WORK SESSION September 8, 2010 APPROVED 89 There was discussion of the status of the city's fund reserve; Mr. Rolek suggested that the 90 reserve is at about 57%. He also anticipates some savings under projections for this 91 year's budget. 92 93 The council requested that staff be open to discussing realistically capital and other 94 expenditures at this time; if certain things don't need to be replaced in the coming year, 95 the best effort should be made to decide that now. Mr. Rolek distributed the proposed 96 capital improvement budget as included in the draft(not adopted)Five Year Plan and 97 then explained that the proposed budget for capital replacement is up from $150,000 to 98 $200,000. The council discussed an increase to the Centennial Fire District budget and 99 the city's requirement to contribute to that budget at a higher level than the other two 100 cities in the district; the fire district equipment has a replacement schedule also. The 101 mayor noted his strong feeling about fully funding the street maintenance budget but 102 added that perhaps he sees some flexibility in the equipment replacement area as long it 103 doesn't disrupt the savings that come with properly investing in equipment. Mr. Rolek 104 noted that financing costs are low now so that remains an option for equipment other than 105 including it in the operating budget. The council recalled plans to purchase a street 106 sweeper and questioned the possibility of contracting for sweeping services. Public 107 Services Director DeGardner explained the logistics of sweeping operations and 108 presented information supporting the financial sense of keeping that service in-house 109 even if it is with just one sweeper. 110 111 Discussion returned to how the council will set the tax capacity rate, a decision that must 112 be made for the upcoming council meeting. Administrator Karlson recommended that 113 the council not use the tax capacity rate as a gauge because it isn't a good indicator in 114 times of deceasing values; looking at actual numbers is recommended. In looking at 115 numbers, one council member suggested that the council consider cuts of$900,000 to 116 represent the $400,000 that wasn't cut last year and the $500,000 increase proposed by 117 staff for 2011. That was recognized as an aggressive number by some council members. 118 Mr. Rolek also pointed out again that the figure established for the preliminary budget 119 will be the maximum so the council can reduce after that. 120 121 The council discussed the possibility of debt financing having heard that interest rates are 122 in the area of one percent. Mr. Rolek noted that the budget includes about$400,000 in 123 expenditures in that area with about $100,000 of that amount proposed to be debt 124 financed. There is the ability to finance an additional $200,000. 125 126 A council member noted that he is continuing to do research on health care, getting some 127 comparison information from other cities. 128 129 The council then discussed how they would set the figure to be approved for the 130 maximum budget and one council member presented reductions in the area of$500,000 131 (health care, capital replacement, attrition, 2010 budget saving all included) and 132 suggested that would make the budget flat with last year;that could be a starting point 133 and one that the council could approve as preliminary. Another council expressed some 3