12/12/2005 Council Packet - Laserfiche WebLink

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SPECIAL COUNCIL WORK SESSION DRAFT SEPTEMBER 8, 2005 1 probably an unrealistic goal as the Comprehensive Plan was written in the late 1990's and 2 adopted by the City Council in 2001. The tax rate at the time the Comprehensive Plan 3 was adopted was approximately 35.9 %. The next year the state legislature shifted class 4 rates and state aid payments and assumed funding responsibility for general education. 5 As a result, the school district tax rate was reduced significantly and the City tax rate 6 increased to 53.1 %. The result on property owners was a tax reduction for that tax year. 7 8 Councilmember Stoltz inquired about a comparable rate for the Comprehensive Plan, 9 given the shift of funds by the legislature. Finance Director Rolek advised that under the 10 funding and class rate shifts, a tax rate of about 36% would be comparable to the 20% 11 stated in the Comprehensive Plan. Under the new scenario, the City would need to 12 decrease the tax rate about 1% per year to achieve a 36% tax rate in 2020 (53% - 36% = 13 17 %, over an 18 year period). 14 15 Finance Director Rolek noted the City's tax rate for 2005 was 42.223 %, which was well 16 below the projected rate of 49% to achieve a 36% rate by 2020 (2005 -2001 = 4 years. 17 53 %- 4 % =49 %). 18 19 Council discussed the differences in the three recommendations further resulting in a 20 compromised budget plan. Councilmember Dahl proposed an alternative budget plan that 21 reached an agreement for approval. Major differences in the two plans including the 22 funding levels for contracted secretarial services, street maintenance and the construction 23 of new trails. A detailed discussion was held on spending approximately $20,000 per 24 year for contracted meeting minutes and the need for detailed or verbatim minutes. 25 26 Council determined that the costs for contracted minutes for advisory boards would be 27 eliminated, as existing staff will record the minutes. Council meeting minutes would 28 continue to be contracted out. The minutes taken by staff would be in detail for public 29 hearings and if any Councilmember is not satisfied with the detail of public hearing 30 minutes it would be discussed by the Council. 31 32 After further discussion, a compromised budget from the two alternative budget plans 33 was proposed. This proposal consisted of the following cuts: 34 35 Roads $ 47,500 36 Secretarial Services $ 7,200 37 Tier III Parks $ 24,000 38 Contingency Fund $ 14,000 39 Capital Equipment $ 27,000 40 Trails $ 20,000 41 Total Additional Adjustment $139,700 42 First Adjustments $285,388 43 44 TOTAL ADJUSTMENTS $425,088 45 3