CC MINUTES 09132005 - Laserfiche WebLink

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City Council Regular Meeting Minutes September 13, 2005 Page 2 2 IV. PUBLIC HEARINGS. 3 None. 5 V. REPORTS FROM PLANNING COMMISSION. 6 None. 7 8 VI. GENERAL POLICY BUSINESS OF THE COUNCIL. 9 A. Consider Resolution 05 -0072, re: Proposed 2005 tax levy and budget in compliance with 10 the Truth -m- Taxation Act 11 Mr. Momson reviewed the Resolution with the Council and indicated that Resolutions have been 12 prepared resolutions to set the 2006 tax levy. He noted Mr. Larson, Finance Director, and he had 13 prepared a PowerPoint presentation. 14 15 Mr. Morrison explained the Council had asked staff to develop a financial plan to review 16 alternatives to offset the impact of the 2006 tax levy. He said they have proposed a budget of 17 $4,177,500, which is an increase over last year's budget. He noted they have proposed changes 18 in the budget. Some funding has been restructured. At Council's direction, he stated they are 19 proposing a 0% increase in the General Fund levy. However, there will be an increase to the 20 Road Improvement Levy. 21 22 Mr. Momson stated it was learned that the City does not have to hold the Truth -in- Taxation meetings. The meetings can be held, however, if preferred. If the Truth -in- Taxation meetings are not held, the Council still has to adopt a levy at a December meeting. He asked the Council 25 to consider whether these meetings should be held as he reviewed the budget proposal. 26 27 Mr. Momson explained there is a $208,500 increase in the General Fund Budget over the 2005 28 budget. Employee pensions are going up due to the PERA law being changed. The levy will be 29 kept the same. He summarized how the levies impact property taxes. He stated the City is in its 30 eleventh year of road improvement projects. This portion of the budget has increased $124,180. 31 This increase for road improvement is the primary reason for the levy increasing. 32 33 Mr. Morrison pointed out that there have been no new staff positions; however personnel costs 34 have increased due to health insurance and PERA laws. Motor fuel costs are up which is an 35 impact to the General Fund. 36 37 He explained that the City receives money from the Fiscal Disparities Pool. This gets distributed 38 to cities in the metro area. St. Anthony will receive $395,820 this year. He also highlighted 39 changes in Limited Market Value Credit. This program has been extended two years until 2010. 40 This limits the amount of taxable value a property can be increased in one year. 41 42 Councilmember Thuesen asked in regard to the fuel costs rising whether the City has a contract 43 with any providers for discounts on gas if a certain amount was purchased. Mr. Momson 44 explained the City does have their own pumps, and less is paid for gas than at the gas stations. 4� Councilmember Stille asked when the Fiscal Disparities will be known for 2006. Mr. Larson 47 answered the end of October.