09/06/2006 Council Minutes - Laserfiche WebLink

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i 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 • 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 • 44 45 CITY COUNCIL WORK SESSION APPROVED DATE TIME STARTED TIME ENDED MEMBERS PRESENT MEMBERS ABSENT CITY OF LINO LAKES MINUTES SEPTEMBER 6, 2006 : September 6, 2006 . 4:39 p.m. . 8:50 p.m. : Councilmember Carlson, O'Donnell, Reinert, Stoltz and Mayor Bergeson : None Staff members present: City Administrator, Gordon Heitke; Finance Director, Al Rolek (part); Community Development Director, Mike Grochala; Director of Administration, Dan Tesch (part); Public Services Director, Rick DeGardner (part); Chief of Police, Dave Pecchia (part); City Planner, Jeff Smyser (part); and City Clerk, Julie Bartell (part) 2007 PROPOSED BUDGET AND TAX LEVY Finance Director Rolek referred to a listing of the collective City Council adjustments to the 2007 proposed budget that was agreed upon on August 28. The adjustments would reduce the budget and levy by $339,872. An additional levy reduction estimated at $30,000 would be realized upon the refunding of the EDA Lease Revenue Bonds, for a total levy reduction of $369,872. This lowers the increase in the budget from 15.58% to 11.98%. Finally, the tax rate would be reduced from the presently proposed 41.880% to 39.965% down from the 2006 tax rate of 41.362%. Finance Director Rolek referred to a listing of the resulting tax impacts on various market value levels of homestead property and a comparative page for 2006 tax impacts. As shown on the listing, City property taxes for all levels of property would decrease by 3.38% if the property value remained the same from 2006 to 2007. This compares with a decrease of 2.04% under the same scenario from 2005 to 2006. Considering an 8% increase in property value for 2007, City taxes would increase by 4.35% for all property value levels. This compares with an increase of 5.80% under the same scenario from 2005 to 2006. Finance Director Rolek noted the City can still refinance the EDA Lease Revenue bonds but in a different manner resulting in a levy reduction of approximately $18,000, as opposed to the $30,000 listed in the above figures. City Administrator Heitke stated that included in the original proposed budget was the creation of a captain's position in the Police Department. The Council previously indicated support for cutting that line item from $108,000 to $18,000. The Department has no use for the $18,000 if that position is not created.