Agenda Packets - 1998/08/31 - Laserfiche WebLink

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August 28, 1998 To: Honorable Mayor and City Council From: Chuck Whiting, City Administrator Re: August 31, 1998 City Council Budget Work Session Monday's meeting has been set to continue with work on the 1998 city budget. Council will recall being briefed on the initial draft budget several weeks ago and identifying some issues of interest to Council and staff for consideration in 1998. This should continue on Monday evening. First, a couple of objectives for the meeting should be set. The City will need to set a preliminary levy at its September 14 meeting. This will set the maximum levy the Council may consider as it continues with budget work during the fall prior to setting a final budget levy in December. This preliminary levy will sent to the county for their calculations in the Truth in Taxation notices to be sent to taxpayers in October notifying them of the City, school and county maximum levies and budget hearings. The state Department of Revenue sets a maximum levy the City may set. That amount has been adjusted since staff last reported. In this packet you will note the August 10 revised notice which for Mounds View set the maximum levy at $1,680,211 or an allowable increase of 5.02% over the 1998 levy. This is $24,605 more than the maximum levy presented to Council last month, so there is some more room to work with. The recommendation to Council at this point will be to set the preliminary levy at this maximum allowable amount September 14 with the understanding that it can be reduced as the budget gets more fully worked into the fall. The second objective for Monday night is to more fully explore the interests and priorities of the Council and delve into the purposes of some of the expenses and revenues. Council is advised to bring their July 17 Preliminary 1999 Budget packet for the discussion. I have asked department heads to again attend the meeting for answering questions. Bruce has figured that 1% of the levy equals about $16,000, so it may be possible to view items in the budget from that comparison standpoint. Three issues need further work to understand their impact on the budget. The City's direction in street reconstruction and assessment policies should be reviewed and will be put on the September 8 work session. The recent decisions on Spring Lake Road do not have immediate impacts on the 1999 budget, but depending on the approach to street reconstruction and assessment policies long term costs and cash flow will likely be effected. In payroll,the Hay evaluation and options can have an impact on the budget and will also be on that agenda for discussion as well. Right now, 3%has been added to existing payroll(pre-Hay) for a working number in the budget. This figure is general and has only three general reasons for being set at 3% ,being the amount established for the second year of the police contract, a percentage amount equal to 1998's increase and it seems in line with what other cities have been doing(not knowing what is being proposed generally by other cities for 1999). It is clear from discussions at the Council that payroll and comparable worth matters illicit various opinions, but the approach that should pertain for Monday night's discussion is simply overall payroll expense. Right now, no comparable worth adjustments are delineated in the budget.