08/31/2000 Council Minutes - Laserfiche WebLink

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• The proposed budget would increase the City's tax capacity rate from 35.920% in 2000 to 36.482% in 2001. Rolek observed that except for 1999 when tax rate compression skewed the numbers, the City's tax capacity rate has been fairly level. The proposed increase for 2001 would increase the City's share of residential property taxes $6.49 per year for a house valued at $100,000; $11.12 per year for a house valued at $150,000; and $20.39 per year for a house valued at $250,000. Rolek briefly reviewed the capital items that would be purchased through Certificates of Indebtedness or internal, interest incurring loans from the Area and Unit Fund. He explained the impact the three-year repayment schedule will have on future budgets. He then referred to the list of capital requests that had been eliminated by staff while finalizing the draft budget. He explained the importance of establishing a revolving fund for equipment replacement. Such a fund would save approximately $42,000 in interest on 2001 certificates of indebtedness. The proposed budget does not include money to establish a revolving fund. • • Rolek then moved on to an explanation of anticipated revenues for 2001. Property taxes account for 64% of revenues. He reviewed the revenue sources by category and noted the estimates are based on historical experience. He explained that the proposed budget includes funding drawn from reserves, leaving reserves at a level just above 50% of expected General Fund expenditures. He noted this is a healthy level of reserves but if the City continues to use reserves for operating expenditures, the level could be impacted negatively. He then provided a brief overview of proposed expenditures and referred to a list of adjustments made to revenue and expenditure requests in fmalizing the draft budget. Community Development Department Community Development Director Brian Wessel presented the proposed budget for divisions in his department. A new cost center containing the Community Development Director and Community Development Secretary has been created by moving those positions out of Economic Development. Wessel reviewed the proposed Economic Development budget and noted that it assumes that until he retires in September 2001, he will be the temporary Economic Development Director and a new Community Development Director will assume responsibility for the Community Development Department. Wessel then reviewed the proposed budget for the Planning & Zoning Division. He explained that $20,000 for planning consultants to assist with new zoning ordinances was not spent in 2000 and will be carried over to 2001. City Engineer John Powell explained the proposed 2001 contract with his firm, TKDA, does not include a cost increase for 2001. The firm is committed to keeping Powell in the City even though he has been promoted to a department head position in the firm He has