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franchise fee, dollar amount of franchise fee, and tax levy target. City Administrator Ulrich <br />noted the road construction discussion had been tabled pending the budget discussion and that is <br />being held up by the road reconstruction projects. He summarized past discussion and strategic <br />planning that identified efforts for 2012 and 2013 and noted a full road reconstruction program <br />with no assessments will cost $3 million per year and a modified reconstruction program will <br />cost $1.5 million per year. The Council had previously debated the option of funding road <br />projects using savings from budget cuts and a franchise fee at some point in the next two years to <br />provide a sustained effort of raising $1.5 million per year. <br />Finance Officer Lund reviewed the staff report and indicated that since the last budget <br />discussion, a management analyst position has been added. <br />City Administrator Ulrich proposed making an intern position a full -time position to help with <br />various administration projects. <br />Finance Officer Lund noted the following changes have been made. employee buyout/early <br />retirements are now listed separately, the Receptionist and Code Enforcement positions were <br />removed from the reduction list, the Deputy Administrator position was indicated as leaving, and <br />a building maintenance part-time position and police officer were added. <br />City Administrator Ulrich explained both the Police Department and Maintenance positions are <br />anticipated early retirement and programmed to not be refilled. <br />Finance Officer Lund stated the current policy to distribute excess revenue ($129,000 at the end <br />of 2011) will instead be distributed 80% towards road reconstruction and 20% to the three other <br />funds. She presented the Street Maintenance Program and anticipated budget needs. <br />Councilmember Wise asked what type of tax base growth was being projected for future years, <br />from 2014 on. <br />Finance Officer Lund stated the projections hold the tax base growth constant. She then <br />reviewed tax capacity rates, percentage of budget related to personnel and all other expenditures, <br />noting in 2009, personnel costs were 72.20% of the budget and it is estimated that by 2016 it will <br />be 57.52 %. <br />Councilmember Strommen asked what is the goal for the budget and how the Council intends to <br />measure when that goal is reached. She felt it was hard to say which of the reductions were <br />necessary and to understand the ramifications of decisions needed to be made. Councilmember <br />Strommen noted when the Council started this process, it considered a list of reductions that <br />were possible but now a completely new slate of reductions is being presented. Staff has <br />indicated the presented reductions are sustainable in the short term, but she would ask what that <br />teen is. Councilmember Strommen stated she is very concerned about this and future years and <br />what it means in terms of services to residents. She is also concerned the City is not filling the <br />economic development positions when two strategic goals relate to economic development. <br />Councilmember Strommen recommended the Council first set targets so there is some context. <br />City Council Work Session / March 20, 2012 <br />Page 2 of 12 <br />