HomeMy WebLinkAbout08.29.00 Work Session Minutes
MINUTES
COUNCIL WORKSHOP
PROPOSED 2001 BUDGET
AUGUST 29, 2000
1. CALL TO ORDER
The meeting was called to order by Mayor Ristow at 7:00 p.m.
Members Present: Ristow, Soderberg, Strachan
Members Absent: Cordes, Verch
Also Present: City Administrator Erar; City Management Team
2. ADOPT WORKSHOP AGENDA
MOTION by Strachan, second by Soderberg to adopt the agenda as presented. APIF,
MOTION CARRIED.
3. PROPOSED 2001 TAX LEVYITAX RATE
Finance Director Roland reviewed with Council how the tax rate is computed, and
explained the assumptions used to arrive at the estimated 2001 Tax Capacity Rate of
30.0%. The Total 2001 Levy to Collect was proposed to be established at $2,095,967.
Discussion revolved around the increase to the City's Tax Capacity Value and the
resulting effect of the growing tax base on the Tax Capacity Rate. It was noted that the
projected Tax Capacity Rate for 2001 would be the fourth consecutive decrease since
1998.
4. REVIEW OF GENERAL FUND REVENUES
General Fund revenues projected for the year 2001 Budget were discussed. The
$4,655,929 included increases in the areas of Property Taxes, Building Permits,
Intergovernmental Revenues, Fines and Other Revenues (including Interest Revenue
and Transfers in from other funds). The only area projected to decrease was the area of
Charges for Services due to the change in accounting practice which moved the
Swimming Pool and Senior Center operations to the Special Revenue Fund. It was also
indicated that the proposed budget assumed funding of a police officer from a COPS
grant which the City does not yet have approval for. If the grant application is not
approved, the grant revenue and new police officer position expense for 2001 would be
removed from the final adopted budget.
It was further identified that the proposed expenditures for 2001 exceeded the revenues
by $22,839 and that a slight draw down of the General Fund Balance would be required
to fund all budget expenditures in 2001. However, the Fund Balance will still exceed the
Council guideline of 25% (at 28% at 12/31/01).
5. 2001 PROPERTY TAX IMPACT REVIEW
Four local properties have been studied since 1996 to determine changes to their market
values and property taxes over time. For 2001, significant increases in each of the
property's market value results in increases in taxes payable, despite the decrease in the
City's tax rate.
6. PROPOSED 2001 BUDGET
The 2001 budget was developed in keeping with Council budget guidelines:
· A commitment to maintain the 2001 Local Tax Capacity Rate at the same level as in
2000 (30.6 % in 2000 to 30.0% in 2001).
· A fiscal goal that works toward establishing the General Fund Balance at no less than
25% (from 26.8% in 2000 to 28.3% in 2001).
. A commitment to maintain the 2001 Debt Service Levy at no more than 25% of the
Levy to Collect (2001 budget is maintained at 18.8%).
. A comprehensive review of the condition of capital equipment to ensure the most
cost effective and consistent replacement schedule (the 2001 budget recommends
$635,699 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.
The proposed budget calls for General Fund Revenues of $4,655,929 and Expenditures
of $4,678,768. These amounts include transfers, and as mentioned during the
presentation on revenues, the proposed budget would require a draw on the fund
balance of $22,839.
7. COUNCIL REVIEW AND DISCUSSION
During a brief discussion on the City Administrator's Budget message, Council re-
affirmed their support of the repeal of the State Sales Tax on municipal purchases.
Council concluded that the budget, as presented, met their established guidelines and
policies. Council agreed to consider the budget, including the preliminary 2001 tax levy,
to the City Council meeting on September 5, 2000.
8. ACTION ITEMS
None
9. ADJOURN
MOTION by Strachan, second by Soderberg to adjourn at 8:26 p.m. APIF, MOTION
CARRIED.
Respectfully submitted,
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Robin Roland
Finance Director