HomeMy WebLinkAbout08.18.99 Work Session Minutes
MINUTES
COUNCIL WORKSHOP
PROPOSED 2000 BUDGET
AUGUST 18, 1999
1. CALL TO ORDER
The meeting was called to order by Mayor Ristow at 7:00 p.m.
Members Present: Ristow, Cordes, Soderberg
Members Absent: Strachan, Verch
Also Present: City Administrator Erar, City Management Team
2. ADOPT WORKSHOP AGENDA
MOTION by Cordes, second by Soderberg to adopt the agenda as presented.
APIF, MOTION CARRIED.
3. PROPOSED 2000 TAX LEVY/TAX RATE
Finance Director Roland reviewed with Council how the tax rate is computed and
the estimated 2000 Tax Capacity Rate of 32.0%. It was indicated that the
proposed tax capacity rate marks the third consecutive tax rate decrease the City
will experience since 1998.
4. REVIEW OF GENERAL FUND REVENUES
Revenues projected to be approximately $4,250,095 for the year 2000 budget
were discussed. The City Administrator informed Council that funds remained in
the proposed budget for the continued ownership of the Dakota County Library
building, in the event the building is retained by the City. It was indicated that
should the transfer occur, adjustments would be made in the budget with the
difference in expenditures being applied to fund balance.
5. 2000 PROPERTY TAX IMPACT REVIEW
Four local properties have been studied since 1995 to determine changes in
market value and property taxes paid over time on differently valued properties.
The conclusion of this study indicates that even as property values increase, City
taxes paid have decreased. Staff indicated that one conclusion that can be drawn
from this analysis suggests that new development is paying for itself, and is not
proving to be a financial ~ burden on existing properties.
6. PROPOSED 2000 BUDGET PRESENTATION
The 2000 budget was developed in keeping with the Council budget guidelines:
. A commitment to maintain the 2000 Local Tax Capacity Rate at the same
level as in 1999 (33.1% in 1999 to 32.0% in 2000).
. A fiscal goal that works toward establishing the General Fund Balance at no
less than 25% (from 19.38% in 1999 to 22.35% in 2000).
. A commitment to maintain the 1999 Debt Service Levy at no more than 25%
(2000 budget is maintained at 20.9%).
. A comprehensive review of the condition of capital equipment to ensure the
most cost-effective and consistent replacement schedule (the 2000 budget
recommends approximately $1,031,292 in new or replacement equipment).
. A team approach that encourages strategic planning to meet immediate and
long-term operational infrastructure and facility needs.
. A management philosophy that actively supports the implementation of
Council policies and goals and recognizes the need to be responsive to
changing community conditions and concerns.
7. CITIZENS JURY ON PROPERTY TAX REFORM
City Administrator Erar informed Council of the Citizens Jury on Minnesota
Property Tax reform which is sponsored by the Department of Revenue and with
the support of Governor Ventura. Findings from the Citizen's Jury suggests that
local government shift their reliance from the property tax to user fees and _
charges for specific City services. Furthermore, the Citizen's Jury found that the
state tax system should continue to provide state aids to local government as
funding mechanism to help underwrite local government services.
8. COUNCIL REVIEW AND DISCUSSION
Council discussed the budget calendar, the pros and cons of a bi-annual budget,
proposed uses for the Ice Arena during the off-season and the retirement of bonds.
It was pointed out that resident's sewer rates will again be reduced in 2000.
Councilmember Cordes thanked staff for their diligence in following Council
guidelines, keeping taxes down while insuring that services are maintained. The
City's budget information presented to the Council can be found on the City's web
site at www.ci.farmington.mn.us.
Council concluded that the budget as presented was thoughtfully considered and
adhered to Council budge~ guidelines and policies. Finance Director Roland
indicated that the preliminary tax levy would be presented to Council at their
September 7, 1999 Council meeting.
9. ACTION ITEMS
None.
10. ADJOURN
MOTION by Cordes, second by Soderberg to adjourn at 8:30 p.m. APIF,
MOTION CARRIED.
Respectfully submitted,
"~F~
Karen Finstuen
Administrative Services Manager