Agenda - Council - 09/09/2014 - Laserfiche WebLink

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Pera Pension rate increases, a full-time park maintenance position (Per Strategic Plan -Smart Citizen Focused Government to maintain current level of service) and the dissolution of the Housing and Redevelopment Authority(HRA). Per the City's Strategic Plan - An Effective Organization, the City Council has chosen to dissolve the HRA effective January 1, 2015. The HRA's budget and levy ($207,802 in 2014) have been eliminated for 2015. Consequently, all previous HRA personnel costs need to be shifted. Previous HRA personnel costs have been incorporated into the budgets and levies of the city's General Fund and Economic Development Authority (EDA) Fund. This action eliminates the "hidden tax" levy of the HRA and includes those expenses in the general City tax -capacity rate. 3. Building Permit Revenue Decrease - $208,293 of levy increase. The decrease in revenue is attributed to a conservative approach, and reflects an apparent continued soft market for development. In prior years, when major growth was occurring, the city saw new residential permits in the 100-150 range. For 2015, new residential permits are being estimated at 50 units. For 2014, the city is currently approximately $100,000 under budget in permit revenue based on eight months of activity. This shortfall is being considered in the calculation of 2015 permit revenue. As the date for final levy adoption in December approaches, City staff will review and adjust this number based on known development activity and market trends. 4. Issuance of Capital Equipment Certificates - $101,821 of levy increase. This debt is proposed to be issued in the winter of 2014 and will be levied for next 10 years. It will provide 50% of funding for 2015-2017 Capital Equipment purchases with the remaining 50% coming from the city's Equipment Revolving Fund. A total of $544,963 is included in the 2015 General Fund Budget for Capital Purchases. The 2015 Proposed Budget includes the following capital items: Squad Car, 800 MHZ Radio System for Police/ Fire & Public Works, Additional Plow Truck (City Strategic Plan to reduce plow times), Sidewalk Machine, and a Field Vehicle Machine. As noted, the EDA levy is included in the overall levy amount of $9,410,498. A separate resolution has been prepared for authorization to acknowledge the EDA's recommendation of a $116,444levy. While the proposed levy can always be reduced, it cannot be increased without "higher" level approval through an appeals process. As noted, the amount of the levy was determined by council consensus at the work session of September 2, 2014. The proposed levy must be certified to Anoka County by Monday, September 15, 2014. Therefore, the Council must make a decision at tonight's meeting as to the amount of this levy, or schedule a special meeting prior to the 15th. Schedule Budget Public Hearing Date: The Truth -in -Taxation law was changed in 2009. The City is no longer required to hold a special TNT hearing or to publish a notice of the TNT hearing. In lieu of the eliminated formal TNT hearing, the City is required to hold a regularly scheduled meeting at which the budget and levy will be discussed. The City may adopt the budget and levy immediately following. The public meeting must be held between November 25 and December 29 and held after 6:00 P.M. Staff is recommending that the public meeting be held at its regularly scheduled meeting of December 9, 2014, with adoption of the 2015 General Fund Budget and levy to immediately follow. The public meeting date must be certified to Anoka County by Monday, September 15, 2014; therefore, the City Council must make a decision as to the date selected for the 2015 payable public meeting at tonight's meeting. Observations/Alternatives: As this is the adoption of a preliminary levy that can be amended (only lowered) no alternatives are being listed. Budget worksessions until final adoption in December will allow for alternations if needed. Funding Source: