08/21/2006 Council Minutes - Laserfiche WebLink

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• • CITY COUNCIL WORK SESSION AUGUST 21, 2006 APPROVED 1 Finance Director Rolek stated he would outline the high points of each department as 2 well as revenue areas that have been adjusted. He stated he would also discuss the levy 3 impact and the levy as a whole. 4 5 Finance Director Rolek advised staffs' goal in preparing the budget were to maintain 6 current service levels to citizens, ensure each department has adequate resources to 7 perform their functions, provide resources for maintaining local streets and storm 8 drainage, provide for the replacement of work equipment, update the Comprehensive Plan 9 and City Vision and provide a small contingency for unforeseen circumstances that may 10 arise throughout the year, while maintaining a level tax rate. It is incumbent upon staff to 11 present a budget that represents the needs of the community and is fiscally responsible to 12 the taxpayers. 13 14 Finance Director Rolek advised the state is scheduled to resume funding of the Market 15 Value Homestead Credit (MVHC) in 2007. The estimated MVHC for next year is 16 $330,000 and has been included as a revenue source in the budget. The City must 17 remember that this credit was suspended in 2003 and again in 2005. While the state 18 continued to offer a credit on property tax bills during this period, the amount of which is 19 deducted directly from the City's certified levy, the amount was not paid back to the City 20 through the MVHC program. It is conceivable that if the state's budget again suffers a hit 21 in the current biennium that this aid could be suspended a third time. However, staff is 22 optimistic that this will not occur. In the unlikely event that this does happen staff will 23 develop a list of strategies to avoid potential fiscal problems that may result. 24 25 Finance Director Rolek stated several factors were considered and included in the 26 proposed budget. The Council set several goals during its goal setting session in May of 27 this year. Resources are provided in the proposed budget to work toward accomplishing 28 these goals, which the Council felt represented the greatest needs of the community. 29 30 Finance Director Rolek stated two new staff positions are included in the proposed 31 budget. A police captain is added to increase supervision of a larger complement of 32 officers as well as maintaining administrative functions. Greater need for street 33 maintenance and environmental issues has made it necessary to add a general 34 maintenance person in the public services area. 35 36 Finance Director Rolek advised the budget proposed for 2007 continues the capital 37 equipment replacement program and continues the phase out of the use of certificates of 38 indebtedness. The proposed budget also includes resources to fully implement the 39 maintenance portion of the adopted Pavement Management Plan in 2007. New federal 40 regulations, including NPDES and the clean water act, have made it necessary to include 41 a minimum of $100,000 for maintenance of the City's storm water drainage system. 42 Finance Director Rolek stated the Council awarded contracts for updating the 43 Comprehensive Plan and for a visioning process. Portions of the costs for those projects 44 have already been budgeted, but further significant amounts will be required to complete 45 these processes. Tax abatements have been included in the budget and levy for Target