Agenda Packets - 2006/09/25 - Laserfiche WebLink

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Mounds View City Council August 28, 2006 Regular Meeting Page 12 current recommendation is much more clear and concise. He stated that if it looks like the budget 1 will exceed the projected income, that in order for the City to do this without incurring an 2 additional $10,000 for a special election, the City needs to work on the budget earlier in the year 3 to ensure that the a ballot question will be ready for the election and a special election will not be 4 needed. 5 6 Mayor Marty stated he does not anticipate the problem arising in the near future, but possibly 10-7 15 years down the road, the cap on spending could be an issue. He stated his second concern is if 8 inflation increases significantly and if the inflation is up to or great than 10%, and if the City is 9 capped at 5% or the rate of inflation +2%, the city could be in a quandary. 10 11 William Werner, 2765 Sherwood Road, stated Mayor Marty’s concerns could be discussed ahead 12 of time. He stated the Council needs to be frugal if inflation rises. 13 14 Councilmember Thomas stated that if the Council does what it needs to do, the numbers would 15 be in place in time for the City to react properly. She stated that if the inflation rate rises, the 16 City should consider cutting the budget before calling a special election. She stated that the City 17 would need some serious discussions if there is large inflation and that is the point of the Charter 18 language. 19 20 Mr. Werner stated he is disturbed that funds can be used to reduce the budget deficit. He stated 21 such action should take place after the City meets the goal of the low percentage. He stated work 22 needs to be done to ensure that the inflation rate and potential shortfalls should be considered in 23 the initial budget, rather than using the general fund instead 24 25 Mayor Marty stated he would like the levy limit at 0% as long as possible. He stated that he 26 would like to guard the levy reduction fund to make it last as long as possible without having to 27 use it. He stated he would only like to use the levy reduction fund if it is absolutely necessary. 28 29 Mr. Werner stated that the Council should insist that the budget meets the criteria of 5% of 30 inflation +2% initially. Councilmember Flaherty responded that that is exactly what the Council 31 would like to do and is committed to such a plan. He stated the only item the City would use the 32 levy reduction fund if absolutely necessary. Councilmember Flaherty started that the budget is 33 prepared with that in place. 34 35 Councilmember Stigney asked which CPI would be used and asked if it should be identified or 36 footnoted. He also asked for clarification regarding the language “set limits, with any increases” 37 and stated he would like it to be singular, reading “increase.” Councilmember Thomas stated 38 there are several funding sources and there are multiple issues. Councilmember Stigney clarified 39 that there is only one increase – 5% or the CPI + 2%. City Attorney Riggs stated that the word 40 increase is acceptable. 41 42 City Attorney Riggs responded that it is incumbent for people to look at the published change of 43 the Charter. He noted the CPI is set out in the first chapter of the Charter. He stated the 44 proposed question is the best summation of the changes and that he is recommending approval. 45