HomeMy WebLinkAbout08.19.97 Special Council Minutes
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COUNCIL MINUTES
SPECIAL
AUGUST 19, 1997
1. The meeting was called to order by Mayor Ristow at 7:00 P.M.
Members Present: Ristow, Cordes, Fitch, Gamer, Strachan.
Also Present: City Administrator Erar, staff members Roland, Olson, Siebenaler, Bell,
Mann and Finstuen.
2. The purpose of the meeting was to review the proposed 1998 General Fund Budget which had been
distributed to the City Council on August 4, 1997. City Administrator Erar gave a brief overview. The
proposed 1998 General Fund expenditures total $3,542,640, including operating transfers out. This is a
decrease in operating funds of ($76,756) over last year, and represents a 2.1 percent decrease of the 1997
adopted budget. This decrease is a partial result of both a structural budget change which recognizes
engineering and administrative revenues on only those projects which are ordered and approved by
Council.
One very important consideration in the budget process was to also work towards a reduction in the
City's local tax capacity rate. The 1998 proposed budget provides for a rate reduction from 34.9% to
33.75% and contained within this reduction is a supplemental debt levy to ensure adequate revenues for
debt repayment, with deficit reduction in the debt service funds a high priority.
Under the proposed 1998 budget, the City will have less revenues than in 1997 for general operations and
services, with a net reduction in operating expenditures of $5,184. These reductions, however, still
provide for the adequate provision of local government services in all departments.
Finance Director Roland reviewed the proposed 1998 budget summary revenues, by type, for all funds
and the general fund revenues. Council discussed the need to build a 'rainy day fund'and that the budget
was based on a certain level of growth. A comparison of city taxes on an average priced home was
made.
Councilmember Fitch commended Administrator Erar for the positive changes which had been made in
staff and in procedures since his arrival at the City. The Mayor and Council also thanked the
Administrator and Finance Director for the manner in which financial practices by past administration
are being corrected. The Mayor and Council expressed their appreciation for the excellent presentation
by Administrator Erar and Finance Director Roland. Administrator Erar commended the management
team for their participation and cooperation in making the process productive.
3. Motion by Fitch, second by Gamer to adjourn at 8:20 p.m.
Respectfully submitted,
J!U-u- J~u-
Karen Finstuen
Administrative Service Manager