12/09/1998 Council Minutes - Laserfiche WebLink

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• • • COUNCIL WORK SESSION DECEMBER 9,1998 Staff was asked if they were absolutely certain that building permits would look this good in 1999? Daryl said that between the additional building permit fees and recaptured costs, he was sure this is an attainable goal. It was noted that the City needs a six (6) month operating surplus. Staff was asked what would happen if the State decided to cut their aids to the City. Daryl explained that the City would have to use other revenue reserves. Staff was asked what their levy recommendation would be. Dave explained that a 37% rate would meet the current needs and then plan for the future and solidify the recovery process. However, he noted that staff is committed to making the 36% rate work. He felt if the Council went with the "middle of the road" approach, it demonstrates that the Council dealt with the issue. Staff was asked about the cost of moving into the new buildings. There is no budget for moving. Chris referred to the proposed tax levy and asked what happened to "sweat equity" or "sacrifice"? He suggested that the tax rate could be reduced to 34% if cuts were make in the Travel and Tuition line items and another $100,000 added to revenues. Dave explained that to get to 34%, staff would have to be cut. Caroline said that she was under the impression that the 38% had been cut to 36% after the August budget meeting at Wargo Nature Center. Kim explained that it was at 36% and then the City found out that how much tax compression was affecting the levy. Dave stated that between tax compression and the bonds, staff did what they could. He said that other than staff additions, there is nothing to cut without cutting services. Caroline suggested that if the City Council is going to begin to show that they are making cuts in the budget, a good move would be to show that everyone including Council is tightening their belts. She suggested that for the next year, Council members pay their travel and tuition expenses. John suggested cutting Council salaries. It lets residents know that Council is willing to do their part. However, he noted that Council should not loose sight of the fact that there has been cut-backs from what was originally requested. He also noted that the budget can be tied to inflation if all additional items were removed. The Council got to the 36% tax rate by conscientiously preparing this proposed budget. Caroline said that she is in favor of the 36% rate or lower if possible. John said that he favored the 36% rate, however, he had been considering the 37% rate. Andy said that he is looking at what services the Council wants to give the citizens and said he favored the 38% rate. Page 13