CC WORKSESSION 08032009 - Laserfiche WebLink

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philosophies regarding the direction the Council should go with the 2010 budget. Discussion. Recessed at 5:30PM; reconvened at 6:OOPM Mike reported that the Public Works Director, Police Chief and the Fire Chief will be doing a budget presentation for their respective Department. Mike reported that because of the State of Minnesota's budget deficit, the City of St. Anthony is anticipating a loss in Market Credit /Homestead Value of $133,200. He also reported that nothing would be lost in Local Government Aid because the City has not received LGA since 2002. He went on to explain that in 2008, the City lost $67,000 to the State in December, which is at the end of the City's budget year. The City was also advised at that time the State would withhold $133,200 in Market Value /Homestead Credit for both 2009 and 2010. This will be money that will be permanently lost to the City. Mike indicated as such, Staff sees the 2009 budget goals are to reduce operating and capital costs by $135,000 while at the same time maintaining the current level of services; continue to improve efficiencies; and anticipate and define the risks associated with the proposed cuts, reductions and deferrals. Mike reported that Staff is proposing to reduce the General Operating Budget by $52,000 and reduce capital expenditures by $82,300, which equals $135,000. Review of the power point presentation and discussion of the proposed line item reductions, cuts and deferrals for each department. Tiered Water & Sewer Rates. Roger Larson, Finance Director, presented information regarding the tiered water rates that the State has mandated for cities to implement in 2010, in which higher fees are charged for excessive water use. MN Statute §103G.291 also gives the Minnesota DNR authority to oversee and enforce these regulations to insure that cities develop a plan for the conservation of water. Roger stated that the purpose for this report is to advise Council of impending legislative requirements that are to be implemented but also to receive direction from City Council regarding the goal for the 20% increased revenue that could result from the tiered rates. Roger indicated that based on the City's current rate per gallon, the City's tiered rate could resemble the following plan: Tier 1 $2.60 per 1000 Gallons Tier 2 $3.25 per 1000 Gallons — 25% Increase Tier 3 $4.06 per 1000 Gallons — 25% Increase Tier 4 $6.09 per 1000 Gallons — 50% Increase The percentage increase based on the recommendations from the DNR. Under this scenario, Roger reported that the City could see increased revenues of about $150,000 annually. Roger also reported that this tiered plan would significantly impact high users of water in the community, the two highest being the School District at 1,000,000 gallons of water a year and Happy's Potato Chips at 5,000,000 gallons of water annually. Discussion. Council asked Roger to provide more information for the August 3,d work session. In the meantime, he will provide an article for the Z: \Council Meetings\2009 \Worksessions \06012009 \MINUTES Council Staff worksession 06012009.doc