Agenda Packets - 2005/01/10 - Laserfiche WebLink

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Mounds View City Council December 6, 2004 Regular Meeting Page 8 1 Council Member Gunn indicated Mr. Glidden talked about gas prices and medical services going 2 up. She stated the City has many, many vehicles, therefore whatever inflation affects the citizens 3 affects the City ten times as much. 4 5 Earwin Ives, 7790 Greenwood Drive stated inflation and miscellaneous operating changes are 6 shown as a $161,000 increase. He indicated that is a lot of money. 7 8 Finance Director Hansen stated he started with the largest budget items, and the charge 9 mentioned represents changes to everything else. He indicated there were several items with a 10 $5,000 or $10,000 change that were too numerous to list. He stated if you have 2½% inflation, it 11 represents a $120,000 change in and of itself. 12 13 Mayor Linke noted the problem with the State cuts is that the State did not reduce their taxes; 14 they only reduced how much they sent to the cities. Therefore the cities had to increase their 15 taxes, and the residents end up paying more. He added that as of a few years ago the City has to 16 pay sales tax just like everyone else. He stated another issue the City has is that the gas rebate 17 they receive can only be spent on MSA roads even though gas is used on all the roads. 18 19 Mayor Linke added that the City receives a lot of unfunded mandates from the State and Federal 20 governments, and noted the school district has a similar situation. He stated less than 5% of the 21 school districts budget is discretionary. 22 23 Mr. Suricks asked how much the City’s part time help in the summer costs them. He stated this 24 may be a way to cut the costs. 25 26 Mayor Linke indicated they could look at that, but he is not sure they have any excess there. 27 28 Mr. Suricks stated the City is cutting the grass in areas that residents have always maintained, 29 which is a waste of money. 30 31 Tom Flaag, 2714 Lake Court Drive asked what the City’s current bond rating is, and what the 32 City is doing to try to increase tax capacity. 33 34 Finance Director Hansen indicated the City was rated by Moody’s at A1 for last year’s bonds. 35 36 Mayor Linke commented that as for the tax capacity, they really only have the golf course. He 37 stated Mounds View is about 99% built out. He added that there has been talk about 38 redevelopment on Highway 10, and the City tries to help facilitate that wherever they can. He 39 stated the City will not use eminent domain at this time to buy out someone who does not want to 40 sell. He indicated the gas station is an example; there was a willing buyer and a willing seller. 41 The City determined it was better to keep it as a running establishment rather than over bid 42 against another buyer. 43 44