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