Agenda Packets - 2010/01/11 - Laserfiche WebLink

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Mounds View City Council December 14, 2009 Regular Meeting Page 3 Finance Director Beer stated at the December 7, 2009, Truth in Taxation meeting, Council 1 direction was given to eliminate the 1% general fund increase and maintain the 7.9% increase for 2 the Street Improvement Fund. 3 4 MOTION/SECOND: Gunn/Mueller. To Waive the Reading and Adopt Resolution 7534, 5 Adopting the 2010 Tax Levy. 6 7 Mayor Flaherty noted the 2010 tax levy is $4,099,393 and $300,000 will go to the Street 8 Improvement Fund so we maintained a zero percent increase in the General Fund. 9 10 Council Member Stigney thanked Finance Director Beer for coming up with a method to do 11 away with the levy increase by using money that was set aside for a Police Chief. However, he 12 did not think the Council should “pat itself on the back” because this budget includes hiring 13 personnel that he did not think should be hired at this time. Council Member Stigney stated that 14 the cost for not filling a vacancy is negligible but hiring now and then laying off results in 15 additional costs. Because of those reasons, he does not support the budget. 16 17 Mayor Flaherty noted that Mr. Mueller had commented earlier this evening that the City still 18 needs to provide services, which this budget does, and he is proud of the process used to come up 19 with this budget. 20 21 Council Member Mueller stated she does not always agree with her husband’s position but 22 believed he well stated the residents’ position. With regard to Council Member Stigney’s 23 position, she noted the 2010 general levy and budget has been restored to the same levels as in 24 2008. She felt staff had done a terrific job by cutting expenditures, postponing expenditures and 25 equipment replacement, and worked with “bare bones” without reducing critical services to 26 residents. Also, for years the City has put money into repairing streets because it did not have 27 community support to move forward with street projects. However, residents have now come 28 forward and through guidance from the Finance Director and Street and Utilities Task Force, 29 streets are being rebuilt and utilities rehabilitated. Council Member Mueller noted that the 7.9% 30 levy increase in this budget calculates to less than $70 per household. She felt this community is 31 getting an outstanding accomplishment from this Mayor, Council, and staff by presenting a 0% 32 base levy increase without reduction in services, having an on-going street program, and the 33 lowest taxes per capita of any city in the north metro community. Council Member Mueller 34 thanked all who worked on the budget and stated she is proud of the services this community is 35 providing, making Mounds View the best value in the Metro area. 36 37 Council Member Stigney stated he has nothing against the street program or 0% increase in the 38 tax levy. However, the money is coming from reserves in the Levy Reduction Fund, not 39 taxpayers directly. He noted the Charter limits the budget increase to 1% and with the loss of 40 LGA he believed the Council needed to start dealing with costs now. Council Member Stigney 41 stated that this is not the time to hire more staff but the time to “tighten belts” and do equally 42 well or better with less. 43 44 Ayes – 4 Nays – 1 (Stigney) Motion carried. 45