08/30/2005 Council Minutes - Laserfiche WebLink

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• • • SPECIAL COUNCIL WORK SESSION AUGUST 30, 2005 APPROVED 1 potential adjustments have been identified in both the revenue and expenditure areas. 2 These have been divided into additional "tiers". Tier II adjustments bring the budget to a 3 level that maintains a level tax rate. Tier III adjustments bring the total adjustments to the 4 Council directed $500,000 level. 5 6 Finance Director Rolek advised the intention in identifying potential adjustments is to 7 avoid "quick fix" measures such as shifting expenditures from one period to the next, and 8 to prioritize cuts to preserve the highest service levels possible. Some services will be 9 impacted in the near and, potentially, longer term as a result of the adjustments. Some 10 initiatives and acquisitions have been put off indefinitely due to these adjustments. 11 12 Finance Director Rolek stated the handout holds the potential adjustments identified by 13 staff, including amounts and service level impacts. As stated earlier, they are prioritized 14 by "tier". No cuts to existing staff level have been affected. 15 16 Finance Director Rolek reviewed the revenue potion of the handout noting they are only 17 projections. Staff does not know if the revenues will increase or decrease in 2006. 18 Revenues will have to be monitored closely throughout the year. 19 20 Council determined the projected revenues would stay as proposed within the 2006 21 Budget. 22 23 Finance Director Rolek reviewed the expenditure portion of the handout, including Tier I 24 and Tier II, noting staff is really perceiving the cuts as permanent cuts. The cuts would 25 continue into the future unless the state takes a different approach with funding. 26 27 Finance Director Rolek also advised that the City's tax rate has gone down in the past few 28 years. Because of a shift in state aid funding, the City has to make budget reductions or 29 increase the levy. Staff believes the City will not see the market value credit come back 30 to the City. 31 32 Council determined the proposed $35,000 for professional services and the $18,870 for 33 contractual services should not be cut from the 2006 budget. 34 35 After much discussion, the Council agreed the Economical Development Professional 36 Services in the amount of $5,000 and $12,000 would be cut from the budget. Note this 37 was included in the prior number. 38 39 The majority of the Council indicated strong support for keeping $50,000 for Park Capital 40 Outlay (trail extensions) within the 2006 budget. 41 42 Staff identified the proposed cuts that the Council wanted to remain in the budget, which 43 totaled approximately $104,000. Finance Director Rolek reviewed possible budget cuts 44 from the Tier III list noting it is possible for the City to reach cuts in the amount of 45 $104,000 from that list.