Agenda Packets - 2005/09/12 - Laserfiche WebLink

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Mounds View City Council August 8, 2005 Regular Meeting Page 13 scheduled for August 15, 2005. He noted that Staff is projecting an 8-percent increase in the 1 base levy based on expenditure increases of approximately the same percentage. He explained 2 that the goal Staff had in developing this budget, in terms of the impact to the general levy, is to 3 keep it at less than 10-percent. He stated that this is also consistent with past Council comments 4 and citizen surveys where it was indicated that the desire was to keep the levy low. He stated 5 that this is a starting point, open for discussion adding that the LGA cuts of $122, 217.00 brings 6 the City down to a zero amount received for local government aid from the State of Minnesota. 7 He stated that in order to make up that amount it would mean a 3-percent increase in the base 8 levy if the City were to choose to levy for it. He noted that there are no levy limits in place for 9 2006. 10 11 City Administrator Ulrich stated that there are two major personnel changes proposed, the first 12 involves upgrading the Administrative Assistant to an Assistant to the City Administrator and 13 adding communications coordination duties to the City Receptionist position; and the second 14 involves adding Code Enforcement personnel and staff in the Community Development 15 Department. He referenced the wages stating that 3-percent across the board was used to 16 determine the increase in wages; he indicated that the health insurance would be an issue this 17 year noting that the contract, approved last year, was capped in the second year, by the provider, 18 at 18-percent and the City’s portion of that is an increase in the family insurance of 13.6-percent. 19 He stated that at this point the preliminary budget has to be to the County by September 15, 2005. 20 He explained that it generally follows a budget process time for the City Council where a 21 preliminary levy is established and that means that the City Council can levy no more than that 22 amount, but the levy can be reduced between that time and December when a final levy has to be 23 certified to the County. He further explained that the preliminary levy is establishing the ceiling 24 for the levy by September 15, 2005. 25 26 City Administrator Ulrich stated that it is important to note on the proposed budget that a lot of 27 the base levy impact was reduced by placing a fair burden on the vehicle and equipment fund 28 adding that the fund would have to be reviewed in detail to determine how the fund would be 29 replenished. He stated that $259,000 was spent out of this fund last year noting that the current 30 balance is $1.5 million and $622,000.00 of that balance is currently proposed for this year’s 31 vehicle and equipment expenditures. He indicated that the City budgets an annual contribution 32 of $90,000.00 to this fund and Staff plans to review the details of this fund as a part of this 33 process. He stated that if they have questions or would like to see modifications made prior to 34 the meeting on the 15th that could be done based on tonight’s discussion. 35 36 Council Member Stigney referenced the $122,217.00 LGA loss and asked what the percentage 37 increase would be to the current 8-percent base levy if the City were to levy that amount to offset 38 the loss. 39 40 City Administrator Ulrich explained that the 8-percent includes the increase to make up for the 41 LGA loss. He further explained that the LGA alone is 3-percent, which is included in the 8-42 percent base levy. 43 44 Mayor Marty clarified that they are only considering a preliminary levy at this time of 8-percent. 45