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APPROVED COUNCIL MINUTES DECEMBER 9, 2002 1 departmental budgets were prepared and on August 28, 2002 the Council reviewed the proposed 2 budget. The Council approved the preliminary tax levy and budget and set public hearing dates on 3 September 9, 2002. On September 15, 2002 the preliminary tax levy, budget, and public hearing was 4 held and certified to the County Auditor. By November 24, the County mails notice of the proposed 5 property tax and the Council is holding the Truth in Taxation hearing on the 2003 budget and tax levy 6 tonight. Finance Director Rolek explained that the Council is scheduled to adopt the final 2003 7 budget and tax levy at the December 16, 2002 meeting. The City will certify the final 2003 tax levy 8 and budget to the County Auditor by December 30, 2002. 9 10 Finance Director Rolek stated the 2003 budget will continue to implement the Vehicle Replacement 11 Fund, which allows the City to replace vehicles with current dollars rather than debt dollars. The 12 budget also includes amounts for other capital needs and continued implementation of the 13 Comprehensive Plan. Salary and wage adjustments and a contingency for unknown events or 14 emergencies is also included. 15 16 Finance Director Rolek stated the General Fund Budget for 2003 contains a slightly over 4% increase 17 from the 2002 budget. He presented information on the proposed 2003 revenues as follows: Property 18 tax 75%, license and permits 11%, Intergovernmental 6%, Fines 2%, Charges for Services 3%, 19 Interest 1% and Tire and Miscellaneous 2%. 20 21 Finance Director Rolek presented the proposed expenditures for 2003 as follows: Administration 22 4.68% increase, Community Development 3.94% decrease, Public Safety 6.34% increase, Public • 23 Services 4.44% increase, and Other 7.11% decrease, resulting in a 4.04% increase. 24 25 Finance Director Rolek noted the water budget is slightly lower. The phone -read meter replacement 26 program will be continued but many meters have been changed out so that program will be closing. 27 He noted that debt services are decreased slightly in 2003 and it is anticipated the water rates will 28 remain the same as in 2002. He explained that a balance is accumulating in the Water Fund which 29 can be used when replacement expenses occur in the future. 30 31 Finance Director Rolek presented the proposed sewer budget, which will continue the manhole 32 replacement program and allow for increased treatment costs. The sewer rates will increase $1 per 33 quarter in 2003. 34 35 Finance Director Rolek advised that the annual cost for services for a $200,000 home is $308 for 36 police protection, $59 for fire protection, $129 for street maintenance and snow plowing, $105 for 37 parks and recreation, and $248 for sanitary sewer service. 38 39 Councilmember Carlson asked for an explanation of how the State aid applies to the City's budget. 40 Finance Director Rolek stated the City receives a number of State aids with the main State aid being 41 Local Government Aid. That is a direct revenue to the General Fund and helps fund the General Fund 42 budget. The City receives about $158,000 per year for that. Finance Director Rolek explained that 43 another State aid is the Market Value Homestead Credit, which buys down the cost of the property tax •44 bill for homes under $400,000 in value. The City receives about $400,000 from that credit. The City 45 also receives MSA for maintenance and reconstruction of State Aid Roads. The maintenance portion 2