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HomeMy WebLinkAboutMinutes - 1973/10/01PROCEEDINGS OF THE VILLAGE COUNCIL VILLAGE OF MOUNDS VIEW COUNTY OF RAMSEY A Special Meeting of the Mounds View Village Council to consider the 1974 budget was called to order by acting Mayor Hodges at 8:00 P.M. on October 1, 1973. Present: Also Present: Mayor Neisen Councilman Hodges Councilman Baumgartner Councilman Johnson Councilman Picker Clerk- Administrator Zylla Councilman Hodges announced that Mayor Neisen would be a little late because he was in attendance at another meeting. Clerk Zylla distributed copies of the 1974 Budget plus a Revenue and Expense Comparison for the years 1968 -74. He explained that discussion this evening would be limited primarily to the General Fund, the Utility Fund, and the Bond Fund. He outlined the steps that are followed in the preparation of a Village Budget. The expenses of the General Fund for 1974 were reviewed. The following services accounted for the largest budget increases: Administrative Assistant beginning July 1, 1974 (tentative) 7,000.00 Two (2) policemen, one January 1, 1974, one about July 1, 1974 20,000.00 Continuation of the part -time building inspector (not budgeted in 1973) 5,500.00 Added snow removal and sweeping costs Additional street lighting Addition of a Recreation Director 3,000.00 2,300.00 12,000.00 Clerk Zylla said that assuming a 7% inflation rate, about $28,000.00 worth of new revenue is necessary to maintain the current level of services. Inflation plus additional services amount to approximately $78,000.00. If one takes the 1974 anticipated General Fund disbursements of $499,655.00 less the contingency of $14,000.00, the increase over the 1973 budget can be accounted for by inflation and the increased services enumerated above. Clerk Zylla said that the State Legislature provided no new revenue for municipalities and that any increase in the budget must be funded through a tax increase. The General Fund tax levy for 1974 is $192 compared to $136,787.00 for 1973. The budget receipts amount to $474,464.00 which is $25,191.00 less than necessary to balance the budget. However, with 1973 receipts expected to exceed 1973 disbursements. no budgetary problems are expected to develop. The 1974 General Fund mill rate will be 9.57 mills compared to 7.489 mills for 1973. -2- In the Utility Funds, a minor increase is expected in the water utility but a substantial increase is expected in the sewer utility due to the loss of a $35,000.00 one time sewer bill credit in 1973, and the addition of one new Public Works employee. Total net income for the Utility Funds is estimated at $86,450.00 of which $42,846.00 will be used for debt bonds and interest which amounts to $148,535.00 in 1974. ($213,700 before the Ehler's report reduction). The balance of the net income will be used to build up the utility fund balance from its dangerously low level of about $79,000.00. The utility fund balance will be increased to provide for emergencies and to pay for the addition of filtration facilities at Well No. 4, and the purchase of land and one additional well at a later date. The total debt levy will be 5.25 mills compared to 5.279 mills in 1973. The anticipated tax increase on a $20,000.00 home will be $2.53 a year; on a $25,000.00 home, $3.53 per year. The Clerk agreed with the Council that the Village was presently in good financial shape. However, he sounded a word of warning that unless the Legislature provides new tax sources and relaxes the Levy Limitation Law, problems may develop in funding anticipated 1975 disbursements. Receipts General Fund 1973 1974 419,083 474,464 Net Receipts Water Utility 1973 1974 114,900 123,900 Net Receipts Sewer Utility 1973 1974 145,200 211,700 1 1. Sewer use charges to increase January 1, 1974 from $9.00 to $12.00 per quarter. MSP (Neisen- Hodges) To adopt Resolution No. 611 certifying a General tax levy for 1973/74 of $192,620.00. 5 Ayes (Johnson Baumgartner) To adopt Resolution No. 612 certifying a bond and interest tax levy for 1973/74 of $105,689.00. MSP (Picker- Neisen) To adjourn at 8:50 P.M. c es Disbursements 1973 1974 407,967 499,655 Net Disbursements 1973 1974 86,303 94,975 Net Disbursements 1973 1974 154,175 103,000 ectfully Submitted, if ennis S. Zy Clerk- Administrator 5 Ayes 5 Ayes