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City Council Regular Meeting Minutes September 9, 2003 • Page 10 placing the sod. Mr. Hubmer responded the soil preparation was complete and the first phase of 2 laying the sod was commencing. He added additional black dirt was being provided to make 3 clean connections and because the first delivery of black dirt was unacceptable due to debris. 4 5 Councilmember Thuesen agreed the dirt being used was"pretty disgusting." Mr. Hubmer noted 6 the black dirt must be replaced if it did not meet performance specifications. 7 8 Mr. Hubmer indicated a construction bulletin was being sent out advising residents regarding 9 how to take care of their sod. He added the contractor was watering; however, any supplemental 10 watering would be a plus. 11 12 Councilmember Horst indicated the concern from the residents was that it was going to take a lot 13 of work to get that sod to grow with the soil that had been used. He stated residents felt it would 14 take years. 15 16 Councilmember Horst asked about the performance guarantee that indicated this sod would take 17 and the yards would come back to normal. Mr. Hubmer responded there was a two-year 18 warranty on the project and contractors had been brought back to do replacements on sod-related 19 and topsoil-related issues. He added there had been very few problems in the past. 20 21 VII. REPORTS FROM COMMISSIONS AND STAFF. 22 A. Resolution 03-075, re: Proposed 2004 tax levy and budget in compliance with the Truth- in-Taxation Act. City Manager Mornson noted Resolution 03-075 was prepared by the City's Finance Director 25 setting the City's 2004 levy. He added the levy was impacted this year by changes made at the 26 State level which affected revenue the City received in the LGA program. 27 28 Mr. Morrison explained the City would receive $267,348 less in State Aid in 2004 than the City 29 was to receive in 2003. He noted the State was allowing cities to make up 60%of the loss in 30 revenue by authorizing levy increases. He indicated this would provide the City with $160,409 31 of the $267,348 reduction; however, there was no other authority given to cities to adjust for 32 inflation increases, cost of living increases, etc. 33 34 Mr. Morrison stated reductions would be implemented in budget line items, staff and the capital 35 equipment budget, along with a proposed 0% increase in salaries. 36 37 Mr. Morrison indicated the property tax levy was $2.3 million, along with other special levies. 38 He added there was also an additional levy for the certificate of indebtedness for the fire 39 equipment certificate and lease revenue bonds for the public facilities projects approved earlier. 40 41 Finance Director Larson and Mr. Morrison also presented summaries of the general operating 42 fund budget. 43 44 Mr. Morrison stated staff recommended adoption of Resolution 03-075, which set the levy for 2004 as well as set the Truth-in-Taxation date for December 8, 2003, which could be the last meeting of 2004. He added, if a second meeting were needed, it would be set for Monday, 47 December 15, 2003.