04/22/08 - Laserfiche WebLink

Home

Councilmember Elvig asked what the overall budget amount is. Finance Officer Lund stated that for 2007 is was $10.3 million. Motion by Counci1member Elvig, seconded by Counci1member Look, to recommend that the City Council adopt the resolution authorizing the transfer of the General Fund Excess Revenues to the Equipment Revolving Fund, the Facility Construction Fund, the Public Improvement Revolving Fund, the Park Trust Fund and retain $60,000 in General Fund. Motion carried. V oting Yes: Chairperson Strommen, Councilmembers Elvig and Look. Voting No: None. Case #2: Discussion Regarding Hiring Freeze Finance Officer Lund stated that this case is a follow up to a discussion held by the .l?ersonnel Committee. She stated that the Personnel Committee had requested that the budget be looked at as part of the analysis of whether a hiring freeze is warranted. She distributed copies of a very preliminary 2009 budget. She stated that the estimated tax growth from the County is at 1.5%, but it is just an estimate, so she put together 3 scenarios with 1 % growth, No growth and -1 % growth. She stated that this preliminary budget includes no additional personnel or capital and a 3% cost of living increase as part of the union contracts. She reviewed the 3 scenarios and stated that the City would need to levy $8,224,079 as opposed to the $7,610,338 amount that it did last year. She showed a graph of the tax capacity rates since 2002 and noted that the preliminary budget shows that the tax capacity rate, with the 3 scenarios, will be anywhere from 41.9152% up to 42.7491 %. She reviewed the information regarding revenue sources for the City. Councilmember E1vig asked if Investment Earnings have risen. Finance Officer Lund stated that they have not, she was just very conservative in 2008 because the City was unsure. what would happen in 2007. She noted that building permits for last year at this time were at $181,000 and for this year, to date, is $163,000, which also includes the medical examiners building. She stated that building permits are starting to pick up as the weather has gotten nicer, but it is too early to see what will happen by year end. Community Development Director Miller stated that there have been more building permits processed lately and noted that last year's weather was warmer a lot sooner than it has been this year. Finance Officer Lund reviewed the residential tax estimates that homeowners receive and noted that there is an increase of about $192 between 2007 and 2008 taxes. She stated that the possible hiring freeze and 2009 budget information is scheduled for discussion at the May 6, 2008 work session meeting. City Administrator Ulrich stated that recognizing that next year will be a tough budget year, the Personnel. Committee discussed a practical hiring freeze with some exceptions for certain Finance Committee I April 22, 2008 Page 2 of 4