Agenda - Council - 01/24/2012 - Laserfiche WebLink

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$1,513,215 attributed to the total Municipal Center debt. She talked briefly about the one time funding transfer from the fund balance in 2010. Ms. Lund continued that the City Council has mentioned they would like to keep the levy constant. With TIF, it brings it down to about $32,000. She presented some examples of the effect of the levy on taxpayers - on varying priced homes, and noted that it also depended upon the school district they are in. Ms Lund explained that for 2013, the City will need additional one -time funding of $417,807 to cover the $603,000 internal borrowing or one -time transfer from an undesignated fund — such as the Landfill Trust Fund. For 2014, TIF 2 and TIF 10 are decertified, which will add back approximately $605,000 to City taxes. The Street Maintenance Program was mentioned as well. Ms. Lund disseminated a handout of a graph showing the one -time transfers as well as the funds balance analysis. Mayor Ramsey stated he would like to hear how we are going to fix this in the future. City Administrator Ulrich stated that if you look at two years out, there's an issue of about $600,000. Two years out, these funds will disappear. The PIR Fund is replenished but the budget is so tight. He noted we have to find a way to reduce costs. The City Council needs to be made aware of the balances of these funds, etc. Mayor Ramsey stated that even if you subtract out the road reconstruction, we still have a hole. Ms. Lund reiterated that TIF 2 and 10 will generate about $605,000. We have to levy about a million and a half for debt service on this building. She added that 2013 is a gap year. Mr. Ulrich added so one gap year — one time money would be something we could do. Finance Officer Lund noted that the majority of the general fund is attributable to street maintenance Councilmember Strommen stated this is good information for Council to have and we need to discuss this very seriously. She stated that last week the rest of the Council learned that Mayor Ramsey had some recommendations for change but she feels she and the rest are disadvantaged as to what to do because they do not have all the information relating to this recommendation. Mayor Ramsey stated that with regard to his recommendations, we have not talked about that yet — so we should not be worrying about that It will not happen this year. Mr. Ulrich stated that this was not specifically asked for by the Mayor. It's never a good policy to take one -time fixes. We wanted to show you what could be done plus a long -term plan. Director of Public Works Olson reported that from engineering, it's a pretty conservative estimate on the revenue provided. In 2010, there was a 93% increase with fees associated with work that was done. In 2011 — 126% - with conservative projects in the CIP - we are at about 96% for next year. City Council Work Session / November 1, 2011 Page 7 of 10