12/03/2007 Council Packet - Laserfiche WebLink

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CITY COUNCIL WORK SESSION November 5, 2007 DRAFT 179 Finance Director Rolek indicated that the reserve is put forward as a possibility mainly 180 because the budget is pretty much bare bones already. 181 In looking at the 2008 budget further, a council member recognized that the changes in 182 valuations and base budget and how the city will address and meet those challenges 183 should be a part of strategic planning in the coming year. 184 Finance Director Rolek indicated that he will proceed with the budget amendment 185 previously proposed by staff if the council did not wish to approve the in -house 186 engineering proposal. 187 The council concurred that deleting the second clean-up day should be revisited in time to 188 possibly add the fall event next year. 189 2008 -2012 Five -Year Plan - Finance Director Rolek reviewed the plan, as presented. He 190 noted that the plan is truly a compilation of city department directors presenting their 191 forecasts with consideration of city goals and obligation for services considered. 192 The plan anticipates an overall increase in expenditures of 45.72% over five years. 193 Anticipated growth in the tax base related to real estate value has been revised downward 194 reflective of that market. The net overall growth in tax base included in plan is 25.29 %. 195 Therefore the plan does forecast a tax rate increase. There is a general inflation factor 196 included but also specific consideration given in some areas such as energy and insurance 197 costs. Anticipated increased staffing needs, including police that will hopefully be 198 covered by grant funds, are included. The plan is considered a guideline and it does not 199 constitute authorization for future spending. 200 The cost drivers are personnel and capital costs. 201 One council member noted the change in the personnel requirements of the previous plan 202 (last year's approval) versus this plan. He'd like more time to review the details. 203 Director Rolek noted that the growth rate is really the driving factor since the previous 204 plan estimated a growth trend. The personnel costs are really not that much different. 205 The council has a resolution in place requiring a public hearing and approval of a plan in 206 December. 207 A council member suggested that more time for analysis is needed. The tax rate increase 208 will certainly be an item of discussion. 209 A member suggested that the name of the document be changed from a "plan" to a 210 "guideline ". It was clarified that the City Charter calls for the plan by name. 211 Another member suggested that "tackling" the assumptions and how the council will deal 212 with them should be a certain item on the first strategic planning session in 2008. 213 It may be appropriate for the council to consider a different schedule of consideration 214 since the circumstances that determine plan details have changes quite drastically. 215 The estimate of valuation is a big factor; can that information be gained any sooner in the 216 regular process? 217 Director Rolek indicated that that receipt of that information is completely reliant upon 218 when it is available from the County.