Minutes - Council Work Session - 11/26/2013

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Mayor Strommen asked the Council to discuss their position on the options presented by staff. Councilmember Johns stated her agreement with Councilmember Kuzma for Option A, the 2013 tax capacity rate. However, in looking at the priorities and what can be cut, that discussion needs to be held. Councilmember Riley stated his preference is Option B. Councilmember LeTourneau noted the Council had agreed that the adopted preliminary levy was needed to complete the work found to be appropriate and as the tax capacity rate from Anoka County impacted the ratios, it is now at 45 %, which is a placeholder number. Councilmember LeTourneau asked why the City would want to do less work when it has the ability to do more work, even if the rate is at 45 %. Mayor Strommen stated she would like to be closer to the 2013 rate and agrees with Councilmember Riley that the top three items listed can be considered as reductions. She stated there is value to the Communications line but she does not know if it has been discussed what the plan would be. In addition, "Communications" is not a person but how all communicate as a City so it may be possible to address that in ways other than hiring a consultant. Mayor Strommen stated she does not want to arbitrarily make cuts to get to a "magic number" because, as stated by Councilmember LeTourneau, it is about the work the Council wants to accomplish. Councilmember LeTourneau stated the first three items are a given for cuts. He asked what the tax capacity rate would be if the Council agrees to cut Communications. Finance Director Lund stated it would go down to 44.6 %. Councilmember LeTourneau asked whether 44.6% is more palatable for the Council. Councilmember Kuzma stated the City already advertised the 43.37 %. Mayor Strommen stated the amount the Council sets is the amount to be levied, that is what the Council has control over. Finance Director Lund stated she often indicated that it was an estimate and the numbers may come in differently. Councilmember Johns stated she would like to get as close as possible to the 2013 dollars discussed but it depends on priorities that the Council has to agree upon as a group. Mayor Strommen asked if there are any items on the Strategic Plan list that are not a priority to any Councilmembers. She stated there has already been consensus voiced to cut the Communications item. City Administrator Ulrich noted if the estimates had been too high, the Council would not have automatically increased everything but would have wanted the levy as low as practical while City Council Work Session / November 26, 2013 Page of