Minutes - Council Work Session - 08/28/2012

Home

Councilmember Backous agreed and stated what is good for HRA is good for EDA. He stated if the Council is talking about what it needs to do with HRA, it should do the same with the EDA before it cuts their levy. Councilmember Strommen stated that was her point. The Council needs to start with a work plan of activities, the same as it does with the General Fund. Councilmember Strommen stated she thought the Council had agreed to reduce the HRA levy, noting it needs to be based on activities. She stated she wants to assure we have access to the Anoka County HRA levy before setting the maximum and only having $92,000 to work with. Councilmember Strommen agreed the Council needs to look at the plan for the year and anticipated projects. Councilmember Elvig concurred, noting there is majority Council consensus to reduce the HRA levy. Councilmember McGlone stated he has no problem with reducing the HRA levy but if you use one -time funds, the levy will have to be raised when they run out. The consensus of the Council was to direct staff to schedule an HRA Work Session on September 4, 2012. Finance Director Lund presented the School District levy and described the impact to the property taxpayer based only on the tax rate. Based on this proposed levy (not including HRA), a $150,000 house would realize an increase of $8.15. She noted Anoka County is decreasing residential homes by 7.8% so a $150,000 home would be valued at $139,000 and the City portion of taxes would go down $40.39 if all other numbers remain constant. Mayor Ramsey asked what the Engineering Technician III will do during the winter months. City Administrator Ulrich stated the City would primarily be gaining the ability to develop plans and CAD drawings for up- coming projects, but a more detailed analysis is needed. Councilmember Elvig noted with the reconstruction worked planned, this position can work during winter months on road reconstruction plans. Mayor Ramsey stated only Leonard Linton currently has that ability on staff so it will depend on the skill set of the new Engineering Technician III. Finance Director Lund explained this position originated when the former City Engineer said this salary would generate revenues of $750,000 from the three reconstruction projects. Councilmember Strommen questioned the revenue projection and how it relates to that position. She noted someone will be coming on board as the City Engineer so there will be a training period. She asked whether that revenue projection is realistic. Finance Director Lund stated it was conservatively based using 15% of those three project costs. City Council Work Session / August 28, 2012 Page 7of10