08/21/2006 Council Minutes - Laserfiche WebLink

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CITY COUNCIL WORK SESSION AUGUST 21, 2006 APPROVED • 1 and Kohl's. Since the City's commitment has been paid faster than expected, the final 2 year abatement in 2008 should be significantly less than in prior years. 3 4 Finance Director Rolek referred to the 2007 Budget Preparation Calendar noting the 5 Council will approve a proposed 2007 Budget and Tax Levy and set the Truth in Taxation 6 hearing dates on September 11, 2006. 7 8 Finance Director Rolek advised the budget as proposed for 2007 is $9,948,113, a 9 $1,340,887 (15.58%) increase from the amended budget for 2006. The City's tax base 10 over the last year grew by 11.37%. About 3.00% of the increase is from new 11 construction, and 8.37% is from market adjustments. The City's total levy is proposed to 12 increase by 11.08%. This percentage includes the MVHC from the state. The tax rate is 13 estimated to go from 41.362% to approximately 41.880% (This is an estimate based upon 14 a number of factors that were also estimated. Adequate information is not available at this 15 time to calculate a more accurate figure). Because much of the tax base increase is 16 market-driven, it is expected that the City portion of a property tax bill will increase 17 between 5 — 11%. Much of the increase pertains to needed capital outlay and to goal - 18 orientated expenditures. While the proposed budget results in a property tax increase, 19 staff feels the budget presented fulfills most needs of the community and is fiscally 20 responsible to the taxpayers. 21 22 The Council had the following suggestions regarding the proposed budget: • 23 24 1. Put a contingency plan in place if MVHC funds are not resumed in 2007. 25 2. Obtain information regarding out sourcing tree trimming. 26 3. Obtain information regarding the increase of fees for contracting police 27 officers. 28 4. Add an agenda item for the Fire Steering Committee Meeting regarding the 29 cost of contracted services. 30 5. The possibility of adding an additional $100,000 to the contracted Storm 31 Water Management Fund. 32 33 The Council also directed staff to amend the proposed budget reducing the General Fund 34 Levy by $100,000 to keep the tax rate the same as 2006. Staff will then prioritize cuts 35 from the amended budget in amounts of $200,000 and $300,000. Those draft budgets 36 will be presented to the Council at the next budget meeting. 37 38 The Council advised each Council Member would prioritize their cuts from the budget in 39 various amounts as well. Those cuts will also be presented at the next budget meeting. 40 41 The Council requested copies of the meeting minutes from the last Financial Retreat. 42 An additional budget meeting was scheduled for Monday, August 25, 2006 after the 43 regular City Council meeting. 44 • 45 The meeting was adjourned at 9:53 p.m.