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Fire Chief Kapler stated it would be replacing the 1989 steel water tanker with a new plastic <br />water tanker. <br />Councilmember Elvig arrived at 6:31 p.m. <br />Councilmember McGlone stated the City has equipment doing the job today and is not looking <br />to reduce capacity, whether keeping the old tanker or replacing it with a new one that is plastic. <br />He asked how much insurance rates will increase for residents if this truck is not replaced. <br />Fire Chief Kapler stated a lot of things go into that equation and the amount of hauled water is <br />important to maintain the insurance rate. He noted the Fire Department has been responsible <br />with budget monies and already delayed this purchase for several years. Fire Chief Kapler stated <br />there is equipment life and this truck is getting to the "red zone." <br />Councilmember McGlone asked what the City does with equipment that is at the end of its life. <br />Police Chief Way advised of a new internet-based service, like e-bay, where such equipment is <br />sold to the public. <br />Councilmember McGlone noted the truck cost $300,000. <br />Fire Chief Kapler estimated the City may get back $20,000 for this tanker. <br />Mayor Ramsey noted the levy is $100,000 more than last year. <br />Finance Director Lund explained the City would be levying less than last year because of the <br />decrease in taxable value of the homes. <br />City Administrator Ulrich stated Council's direction was to keep the tax capacity rate the same; <br />however, at this point some things remain in flux including personnel issues. He stated if it is the <br />Council's intent to keep it at 44.15%, staff will assure that rate. <br />Councilmember Wise stated there still needs to be more discussion on road reconstruction <br />funding. <br />Mayor Ramsey asked if this budget reduces taxes from what was paid last year. <br />Finance Director Lund advised the tax capacity rate is still higher than last year but the property <br />value has fallen. <br />Mayor Ramsey stated under this budget, residents will pay lower taxes. <br />Councilmember Tossey stated this budget would result in a 44.71% tax capacity and another <br />$100,000 would have to be cut to get down to 44.15%. <br />City Council Work Session / June 19, 2012 <br />Page 4 of 15 <br />