Minutes - Council Work Session - 11/22/2011

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Councilmember Tossey asked if there would be a budget shortfall if no building permits were issued. Finance Officer Lund answered in the affirmative, noting the budget includes $300,000 from building permit revenue, plan check fees, urban septic permits, etc. Councilmember Tossey stated his impression that if there are no building permits, there are no expenditures for processing those permits. He pointed out that from January through July only nine building permits were drawn for new single family. Finance Officer Lund advised the City is currently $150,000 under budget. Public Works Director Olson advised that engineering is $200,000 over budget. Finance Officer Lund explained if the Council reduces fees it will need a corresponding reduction on the expenditure side. Councilmember Elvig noted that communities with few building permits then reduce staff for providing those services. Councilmember McGlone agreed with Finance Officer Lund about having to reduce on both sides of the budget. He stated he has been advocating for reducing the number of parks because more roads means more money and more maintenance. Councilmember McGlone stated the City has five parks in the master plan but has not done much to move in that direction. He felt that the top fee developers and builders will say is too high is the $2,400 per unit park dedication fee. He stated he does not want another new park in Ramsey and wants to bring down the number of parks to five good parks that will cost less to maintain and require fewer staff. In addition, the City could then reduce the park dedication fee. Finance Officer Lund stated this fee schedule is on tonight's Council consent agenda for introduction and scheduling the public hearing on December 13, 2011. If given second reading on that date, it would be effective on January 16, 2012. Councilmember Elvig asked if the Council can adjust fees at a later date. Finance Officer Lund answered in the affirmative, noting that action would require holding another public hearing and following the same procedure. Councilmember Tossey asked if the Finance Committee will be looking at the fee schedule. Councilmember Elvig stated if the Council so directs, the Finance Committee can review the fee schedule; however, the members who are driving that agenda (lower fees) need to be involved so they understand the ripple effect. Councilmember Strommen stated she feels this is a bit like trying to hit a moving target and suggested that if Members have issues with certain fees, they identify the fees so the Council can City Council Work Session / November 22, 2011 Page 8of10