Laserfiche WebLink
Mounds View City Council December 7, 2009 <br />Truth in Taxation Meeting Page 7 <br /> <br />can happen in better times, so he supports directing staff to reduce the 2010 budget by $39,000 to 1 <br />have a 0% levy. 2 <br /> 3 <br />Council Member Gunn noted the City can take $39,000 from the Levy Reduction Fund. 4 <br /> 5 <br />Council Member Mueller questioned the impact to the City’s bond rating should the Council 6 <br />determine to bond to get the streets done. She also asked how quickly the offsetting of the bond 7 <br />rating would wipe out the $39,000 being contemplated from the Levy Reduction Fund. Finance 8 <br />Director Beer explained that the last bond rate increase went from A1 to AA3 and the difference 9 <br />in issuance costs for an interest rate of .5% to .75% is a fairly significant jump from AA to A, 10 <br />which would be a large amount on a street project. However, he does not anticipate the City will 11 <br />need to issue bonds for streets. 12 <br /> 13 <br />Clerk-Administrator Ericson noted the majority of the Council wants a 0% levy increase so staff 14 <br />will bring forward some ideas. He stated it will be a difficult decision because it will impact 15 <br />staff. Mayor Flaherty stated staff has done a terrific job in coming up with budget cuts and while 16 <br />Councils find budgets difficult to work with, at best, staff has done a terrific job. 17 <br /> 18 <br />Finance Director Beer pointed out the 2010 budget anticipates a Police Chief at Step 5 for all of 19 <br />2010. However, it is highly unlikely that will occur so that will save more than the $39,000. 20 <br /> 21 <br />Council Member Gunn asked if the City can deduct from the Levy Reduction Fund at any time. 22 <br />Finance Director Beer answered in the affirmative and advised of upcoming fund transfers that 23 <br />will be determined in February of 2010. 24 <br /> 25 <br />Council Member Mueller thanked Finance Director Beer for his suggestion and asked if doing so 26 <br />would it prevent replacing the Police Chief. Finance Director Beer stated it is a matter of timing 27 <br />and is in the Council’s hands. 28 <br /> 29 <br />Unanimous Council consensus was reached to direct staff to come back with a zero percent levy 30 <br />increase. Finance Director Beer advised that there would be $39,000 less in revenue and would 31 <br />show, on paper, that it is coming from fund balance. 32 <br /> 33 <br />8. Next Council Work Session: Monday, December 7, 2009, at 7 p.m. 34 <br />Next Council Meeting: Monday, December 14, 2009, at 7 p.m. 35 <br /> 36 <br />9. ADJOURNMENT 37 <br /> 38 <br />The meeting was adjourned at 7:31 p.m. 39 <br /> 40 <br />Transcribed by: 41 <br /> 42 <br />Carla Wirth 43 <br />TimeSaver Off Site Secretarial, Inc. 44