Minutes - Council Work Session - 07/08/2014

Home

Finance Director Lund explained that the large property value increase of 15.4% has resulted in keeping down the levy rate. She stated if the Council wants to hold the tax rate constant and not add road debt, the proposed budget would have to be cut by $375,000. Mayor Pro Tem Backous stated he would support that level of cuts. Finance Director Lund reviewed options for issuing debt and explained this is the last year of Fire Station #1 debt but capitalized interest for Fire Station #2 will be coming on line. She also reviewed a chart depicting different level of taxes for a median house and resulting tax rates. Councilmember Tossey arrived at 6:12 p.m. Finance Director Lund presented personnel costs, staffing components, proposed capital debt for 2015 to 2017, and the Equipment Fund. She restated this is the first go around of the proposed 2015 budget and the next steps will be to look at how it can be decreased. Councilmember Riley asked about the Sunwood realignment reimbursement. Finance Director Lund stated the City received that $500,000 reimbursement. Councilmember Riley asked about the expenditure of $326,000 for the new radio system. Police Chief Way stated that is the cost for replacement radios for Public Works, the Fire Department, and the Police Department. Finance Director Lund stated it also includes costs for the new CAD reporting system. She stated the capital equipment items under Police and Fire and Public Works are annual costs. Councilmember Riley asked if the new Police Officer position is for the Drug Task Force. Police Captain Katers stated that is for a Ramsey Police Officer working on the Anoka County Task Force to do drug enforcement. If Ramsey has an officer on the Task Force, it will receive the benefit of an officer working more cases in Ramsey plus receipt of forfeitures. Councilmember Riley asked whether the personnel costs plus COLA and PERA are estimates. Finance Director Lund confirmed that is correct. Councilmember Riley addressed the option of bonding for road projects. He stated if bonding every year, the City would be paying bond costs each year in addition to costs for interest and issuance so he is not sure that is the best method of funding road projects. City Administrator Ulrich commented on the difficulty of working a $1.7 million expense for roads into the City's $10 million budget. He stated this would be a significant hit and result in a large increase in the City's tax levy. An option is to bond over a number of years, resulting in an additional cost each year over the term of the bond so the debt would remain at the ten -year level City Council Work Session / July 8, 2014 Page 4 of 10