Minutes - Council Work Session - 06/29/2010

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Mayor Ramsey stated he did not want anyone paying more for taxes than they paid last year. Ms. Lund stated that the County is saying the overall average is 10% so that's the riumber she used. She explained the tax capacity calculations. We are levying $7 million -the EDA is included in that. That's what we have levied for the past three years - $844,877 represents outstanding debt. The tax rate is 40.28 - it was 37.68 last year. The taxable value went down 10% in Ramsey. Mayor Ramsey inquired if Ms. Lund is confident in these numbers to which she replied these are strictly estimates - we have not received anything from the County. Ms. Lund described fiscal disparities -the City would be receiving about 39.5% on the dollar -about 38% for 2010. Councilmember Look inquired what does about one percent represent to which Ms. Lund estimated about $200,000. Councilmember Look asked Mr. Ulrich what we have cut from the budget to which Mr. Ulrich replied about $150,000. Councilmember Dehen asked what happens to the property tax payer. Finance Officer Lund stated that the average 10% decrease means a $200,000 house goes to $180,000 so we are looking at a $31 decrease. Councilmember Look commented that the HRA budget is about $400,000 and that he would like to get that down to the 39%. He talked about taking the difference from the HRA and EDA and that we are seeing a lot of possibilities coming into the City with no legs. We spend a lot of staff time and if nothing happens, the EDA tries to come to the rescue with money. He did not know if these are businesses that could have along-term life even if we put packages together for them. If we get a viable product in here -good. If we pull $200,000 out, he suggested it be pulled out of these two budgets. Ms. Lund stated there are restrictions on the HRA dollars. Councilmember Look stated that either way, they will pay for it one way or another -the HRA under Special Districts and the EDA under the City. Councilmember McGlone suggested there may be an easier way to find $200,000 -such as not staffing the fire station when there are no incidences. -referencing last week's weather. Mayor Ramsey disagreed with Councilmember McGlone and stated he wants the .fire station to be staffed in instances such as last week. Fire Chief Kapler stated that he felt he made the right call -the response time in an emergency would have been a lot longer if we had not staffed the fire station. He felt that was "cheap insurance". City Council Work Session -June 29, 2010 Page 2 of 10