09/28/2009 Council Packet - Laserfiche WebLink

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SPECIAL WORK SESSION August 31, 2009 DRAFT 47 hard times most likely lay ahead in 2011. That two -year view should include all the 48 pieces, and hard decisions in the area of employees should be made up front and perhaps 49 revenue options such as storm water utility and franchise fees left for next year. 50 51 Finance Director Rolek discussed the interfund loan proposed to handle the 2010 debt 52 service on the Legacy bonds. Staff is still assuming that approximately one -half of that 53 debt service will be handled through such a loan, thereby leaving some flexibility for 54 2011. 55 56 Regarding the maximum tax rate that will be approved by the council on September 14 57 and forwarded, the council concurred they would go with 38.616 (a reduction). Having 58 that number in place, Mr. Rolek suggested that the council can have more discussion at 59 the September 8 work session on how to budget to represent that figure. The council 60 concurred that the figure is a maximum and the goal is a reduction from that point. 61 62 There was a discussion of fund balance and Mr. Rolek asked for clarification that the 63 originally proposed use of $93,377 is on the table. One council member suggested that 64 the maximum rate discussion leaves the fund balance at a different figure. Another 65 member said he believes that fund balance represents levied but unused tax funds that 66 should be returned to the taxpayers (or to use the funds as part of a future budget). A 67 third council member suggested that he doesn't support use of fund balance at all — it 68 isn't a prudent budgeting tool. A majority of the council agreed to leave the $93,377 on 69 the table but with further discussion and review of fund balance. 70 71 Regarding implementation of revenue options, staff remarked that they could begin the 72 review process but wouldn't recommend planning on any revenue for 2010 — 2011 would 73 be more realistic. 74 75 On Mr. Rolek's question about presenting options for (partial or fully) funding internally 76 the debt service on the Legacy bonds, the council requested that staff report back on the 77 status of the project and options to get things moving. 78 79 The meeting was adjourned at 6:40 p.m. so 81 These minutes were considered and approved at the regular Council meeting held on September 82 28, 2009. 83 84 85 86 87 City Clerk, Julianne Bartell John Bergeson, Mayor •