12/12/1990 Council Minutes - Laserfiche WebLink

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5l RECONVENED 1991 COUNCIL DECEMBER 12, 1990 BUDGET PUBLIC HEARING the 1991 Budget and asked where those dollars went? She asked why the City needs additional dollars. Mr. Schumacher explained the reduction in several areas of the 1991 Budget and noted that some reserve had been set aside for additional personnel. Although some areas of the 1991 Budget were reduced, reserves were maintained making the total 1991 Budget nearly the same as the one last considered. Council Member Reinert noted that the impact to tax payers would be minimal and suggested that additional cuts be made in the 1991 Budget. Mayor Bisel noted that once the levy is set the 1991 Budget can be further reduced. Council Member Reinert explained that he was not opposed to using some of the Reserves because of uncertainties facing this Council. He said he felt Reserves were for times of uncertainty. Mayor Bisel explained that the amount of money taken from Reserves can be any amount agreed upon by the Council. The figure stated in the handout in Option No. 2 can be adjusted. Council Member Kuether said she agreed with Council Member Reinert and said she was hopeful that taxes would go down. She said she was uncomfortable taking the entire increase in levy from Reserves. Mayor Bisel noted that the State is looking at "dipping" into their "rainy day" fund. He noted that this City must maintain its Reserves to continue the current quality of services. Mr. Schumacher noted that the City portion of the tax levy was the lowest it had been in the past six (6) years. Council Member Bohjanen asked what the current Reserve balance is and Mr. Schumacher explained approximately $1,030,000.00. Mayor Bisel reminded the Council that they must maintain one half (1/2) of a years operating budget in Reserve because the City does not have any income until June. Mr. Schumacher explained that it appears state aid may be further reduced and this will not help tax payers or the City offices. Mayor Bisel noted the trend to push the tax burden down to the local level to take pressure off the legislators. He noted that there appears to be a movement to keep money in the local area. Ms. Schloer explained that she had used her best guess when preparing the projected tax affect on homeowners. She noted that final captured value for Tax Increment and HACA figures are not available from the county and state. Mr. Andre noted that the Council is talking about a 16% or 18% PAGE 3 1 1 1