Minutes - Council - 09/08/2008 - Laserfiche WebLink

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Case #5: Report from Finance Committee: 1. Adopt Resolution Approving Proposed 2009 EDA Levy; 2. Adopt Resolution Approving Proposed 2009 Payable Tax Levy; 3. Review and Adopt Proposed 2009 General Fund Budget Mayor Gamec noted that the Council has been working on these things all year. He noted that the Council will continue to work on the budget which must be finalized by December. He stated that the Council is trying to keep the levy equal to last years or with just a slight increase. He stated that right now, for a $200,000 home, there would be a $16.00 increase in the levy. He asked Finance Chairperson/Councilmember Strommen and Finance Officer Lund to review the discussion from tonight's Finance Committee meeting. Finance Officer Lund stated that the EDA levy for 2009 is proposed at $291,705, which for a home valued at $200,000 would mean $24.54. She noted that the EDA levy for 2008 was $393,375, so this means a decrease of about $10.00 for residents. Councilmember Dehen stated that the EDA levy is down about $102,000 from last year and expressed his concern that the City is locking itself into this commitment even if the Council finds other services or areas in the budget that can be cut. He asked if this cut got the Council down to the same level as last year. Finance Officer Lund stated that to get it down to the same level as last year, the City would need to cut an additional $200,000. She stated that the final budget needs to be adopted by December 28, 2008. She noted that the general levy cannot be increased, but it can be decreased. City Administrator Ulrich noted that most of the discussion of the Council has been, from this point forward, to further reduce the budget. He stated that the EDA agreed. that this amount could be cut from their budget, with the understanding that the cut may need to go even further. Councilmember Strommen stated that this was discussed at a Council W orkSession and it was determined that because the EDA fund balance was healthy, that there was less of an impact to make a cut here, but also that the Council would continue to take a look at other areas that could be cut. Finance Officer Lund stated that the proposed tax levy for 2009 is $9,554,086, which would mean an increase in taxes on a $200,000 home of $16.62. She stated that Truth in Taxation hearings will need to be held and staff is recommending that these be scheduled for Monday, December 1,2008 at 6:00 p.m. and Monday, December 8, 2008 at 6:00 p.m. She stated that the levy is used to fund the General Budget which is proposed to be $10,137,130 which is $87,894 over the 2008 General Budget. She noted that the budget will be discussed over the next few months before the final version is adopted. Motion by Councilmember Strommen, seconded by Councilmember Look, to ratify the recommendations of the Finance Committee to Adopt Resolution #08-09-174 approving the recommendation of the EDA and approve the Proposed EDA Levy for Payable 2009 in the amount of $291,705; Adopt Resolution #08-09-175 approving the City of Ramsey's payable City Council! September 8, 2008 Page 8 of 10