HomeMy WebLinkAbout11.02.89 Special Council Minutes
MINUTES
COUNCIL MEETING
SPECIAL
NOVEMBER 2, 1989
1. Mayor Kuchera called the meeting to order at 7:00 P.M.
Members Present: Kuchera, McKnight, Sprute, Galler.
Members Absent: Mayer.
Also Present: Administrator Thompson.
2. The purpose of the meeting was to discuss the 1990 Operating Budget.
3. Finance Director Henneke presented a memo dated November 2, 1989 updating
the Council on the impacts of the 1989 tax law. Administrator Thompson noted
that while all of the information had not been received or analyzed, it appeared
that because the school levy was being cut, the average tax payer should see a
tax decrease. It was difficult to determine however, because of the major changes
in tax capacity ratios and elimination of Homestead Credit. Mr. Thompson also
noted that since 1984 the City's portion of the tax bill had either decreased or
remained relatively stable depending on the type of property. Finance Director
Henneke noted that with the additions made by the Council and changes in the tax
law the City was now approximately $39,000 over levy limits. Mr. Henneke added
that due to the dramatic changes in property tax legislation, it was\nO. longer
meaningful to discuss property taxes in terms of "mills" but instead would have
to look at "tax capacity rates".
4. Councilmember Mayer arrived about 7:25 P.M.
5. It was clarified that the $7,000 for Star Cities would be transferred into
next years budget. Councilmember Sprute stated that he still was not in favor
of levying up to the levy limits and suggested the following cuts.
a. Moratorium on purchase of uniforms in all Departments except for
new employees.
b. Eliminate the police squad.
c. Reduce schools and conferences in Engineering.
d. Eliminate sign replacement in Streets.
e. Reduce diseased tree removal by $4,000.
f. Reduce tree planting by $3,000.
g. Eliminate the Council chairs.
h. Eliminate the voting machines.
i. Eliminate Office Furniture
j. Eliminate Office Furniture
Administration.
Fire.
6. Councilmember Galler suggested the Council take a close look at the Liquor
Store to see if profits could be increased or if the Council should consider
getting out of the liquor business.
7. Mayor Kuchera stated that the Council had added Pine Knoll Park improvements
before it knew about the levy restrictions and it should now be reduced or
eliminated.
8. Councilmember Mayer raised the following points.
a. Clarification of contingency.
b. Clarification of increase in Senior Center transfer.
c. Examine all office furnishing purchases.
d. High cost of telephone system.
e. Eliminate the MSA computer.
f. Review the tractor/flail mower, mini crane and router.
g. Possibly cut the rink lights and 1 ton truck.
h. Eliminate the glass replacement in the Arena.
9. Administrator Thompson stated that he would review the recommendations with
staff and report back at the next meeting.
10. MOTION by Sprute, second by Mayer to adjourn at 9:30 P.M. APIF, MOTION
CARRIED.
Respectfully submitted,
/7~
Larry Thompson
City Administrator
Approved
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