CC PACKET 11041998 - Laserfiche WebLink

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City Council Worksession Meeting Minutes October 6, 1998 ' Page 2 1 should be a plan of action which is not cast in cement. Cavanaugh stated his main concern is to 2 ensure a 0%tax levy increase. He questioned the method used to arrive at a 3.15% levy increase. 3 Mr. Larson stated the levy limits for the City are regulated by the State. 4 Cavanaugh asked why funds are transferred from the City's reserves each year in the revenue 5 section of the budget. Mr. Larson stated a fund had been established in recent years to offset 6 revenue shortages caused by insufficient transfers from liquor operations. Cavanaugh stated the 7 City's reserve fund is the savings account of its citizens, adding revenues should equal expenses 8 without using funds in reserve. He added this process represents a shortfall in the budget. 9 Cavanaugh requested an estimate of revenue and expenses for 1998 for the December Council 10 meeting for comparison purposes. He asked whether any inflation assumptions had been made 11 by staff in this budget. Mr. Morrison stated the federal government's Consumer Price Index is 12 utilized, as well as increases within employment contracts. 13 Cavanaugh asked whether productivity improvement measures are given to staff to offset the 14 levy increase. He requested a total number of full-time staff employed by the City, as well as an 15 organization chart, be added to the budget. Thuesen added his support to this request. Mr. 16 Larson stated the data could be included on an addendum page. 17 Cavanaugh asked how the City arrived at a 3%salary increase for management staff. Mr. 18 Mornson stated the management salary increases are based on performance reviews. Cavanaugh 19 asked when the Council conducts Mr. Mornson's performance review. Mayor Ranallo stated a 20 notice had gone out to the Council with regard to Mr. Mornson's review. 21 Cavanaugh asked whether Mr. Mornson's management staff performance reviews are presented 22 to the Council for approval. Mayor Ranallo stated the performance reviews are not presented to 23 the Council. 24 Mr. Mornson stated the reviews are protected data, adding he would confirm this with the City 25 Attorney. Faust stated the management staff would be placed at political risk and the Council is 26 concerned that the staff be insulated. He added Mr. Morrison is solely responsible for the 27 performance of his staff. 28 Cavanaugh expressed concern that the budget doesn't include detailed financial information 29 regarding the parks improvements, flood mitigation efforts, and public works facilities. Mr. 30 Mornson stated the proposed budget is a general operating fund. He added the 1997 audit 31 outlines specialized funding. 32 Cavanaugh stressed the importance of quality money management to ensure that departments • 33 come in under budget. Marks stressed the necessity of reserve funds. Faust stated the function