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

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Mayor Ramsey stated that with regard to the budget for next year — the concern was previously we did not want to levy any more money than what was levied last year. The trouble we will run into with the new way things are calculated, it will look like we raised taxes. Finance Officer Lund responded that the direction was to keep taxes the same. With two school districts, it will be a little more difficult. If the direction is that Council would like to see the levy kept the same — the reduction is $32,000. Mayor Ramsey stated we need to be at least there. Councilmember Strommen stated she agrees with that goal but we also should have that entered as part of the conversation. The dollars we invest in the streets and neighborhoods — that' s a value to residents too. $50 to $100 is worth it. There are two sides to this — one is to keep the levy the same and the other is we need to invest in our City. Mayor Ramsey stated that we need to keep the streets up but we do not want to have foreclosures either. Will $50 to $100 cause foreclosures — he thought it could. Councilmember Strommen reiterated it' s about investment into our community. Councilmember Tossey expressed concern about declining home values and added he does not want to raise the levy. Councilmember Elvig commented that we are trying to add in The Draw for example — but then we are trying to cut other things We will have several million dollars coming on with street reconstruction — there will be a lot of complexities in the next couple of years. Councilmember McGlone stated that in the good years, we built up fund balances for one time money for bad times. Everything we build costs money. Mayor Ramsey stated he would be interested in losing that $30,000 and keeping it the same. Councilmember Strommen asked what we are giving up to lower it that $30,000 — and is it worth it. When is what we are giving up not worth it. She views it as a range. Mayor Ramsey stated he wants to be able to say he did not raise taxes. City Administrator Ulrich stated he is confident we can come back with a budget to reduce that $30,000, without significant impacts. We will work on that and bring it back to the City Council and have the levy slightly lower than last years. Ms. Lund reported in 2008 it was $10 million, in 09 it was $9,978 million, in 2010 it was $9,639 million, in 2011 it was $9,449 million and in 2012 the proposed amount is $9,689 million and having TIF 1 come back to help absorb that. We have been decreasing for the last five years. City Council Work Session / November 1, 2011 Page 8 of 10