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Mounds View City Council July 24, 2006 Regular Meeting Page 4 Councilmember Flaherty asked about the spike in 1999 with the operation expenses related to the 1 water fund on page 10. Mayor Marty stated he does not recall why there was the spike. 2 Councilmember Flaherty pointed out it went from $700K to nearly $1 million. 3 4 Director Lee stated it was a water-meter change-out program. 5 6 MOTION/SECOND: GUNN/STIGNEY. To waive the reading and adopt Resolution 6868 7 Accepting the Comprehensive Annual Financial Report for the year ended December 31, 2005. 8 9 Ayes – 5 Nays – 0 Motion carried. 10 11 7. COUNCIL BUSINESS 12 13 A. 7:05 pm - Public Hearing to Consider the First Reading and Introduction of 14 Ordinance 776, an Ordinance adopting the Five Year Financial Plan. 15 16 Finance Director Beer stated at the last work session the 5-year financial plan was presented for 17 review and discussion. He recommended opening the public hearing. 18 19 Mayor Marty opened the public hearing at 7:24 p.m. 20 21 Ken Glidden, 5240 Edgewood Drive, commented that it bothered him to hear that there is a shift 22 of the revenue source toward property taxes as reported in the budget report. He stated that even 23 if the shift is the same as what is happening in other Cities, the shift should concern residents. 24 25 Mayor Marty responded that it is due basically to the reduction and elimination of LGA, Local 26 Government Assistance. He stated the City used to receive close to $1 a year in LGA and when 27 that was cut there were the same expenses in the City. He stated in order to keep the City 28 running, they had to raise taxes. He stated the state property taxes were cut, but the City had to 29 raise taxes in order to keep the City running. He noted the shift from the State funding to City 30 funding. 31 32 Councilmember Thomas stated the point in the report was a shift to property taxes from the City 33 doing business. She stated the City has stopped doing business and that is the reason for the 34 shift. She stated the major reason was the sale of the Golf Course. 35 36 Mr. Glidden stated the City has very few other sources of income. He asked if there will be 37 increases or decreases to the assumptions about estimated market and assessed property value. 38 Finance Director Beer stated assessed values are not considered, but that there is a 3% levy 39 increase estimate. 40 41 Mr. Glidden asked about the overall increase in expenditures. Mayor Marty replied that the 42 Council’s goal is to have a 0% increase. Finance Director Beer stated that for 2007, he 43 calculated 0%, but for the subsequent years he factored 3%. 44 45