Minutes - Council Work Session - 09/02/2014

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$266,000 in budget reductions and $891,000 in levy reductions. Finance Director Lund presented the tax impact to a median priced house in Ramsey of $175,000 (now $202,000), noting it would experience an increase in taxes (Ramsey's portion) of $342. She requested Council direction whether it supported this revised preliminary budget with the understanding that it can be reduced prior to adoption. In addition, the Council will be asked at a future meeting what percentage it supported for assessments, which would reduce the City's debt levy. Councilmember Kuzma asked how this levy increase compared with surrounding communities. Finance Director Lund reviewed a comparison of Ramsey's levy increase of last year with surrounding communities, noting it was in line. She explained that due to what is happening with the market value, she expects there will be some increases. Councilmember Backous stated it is nice to know whether Ramsey's levy increase is in line with surrounding communities; however, communities are in different stages of growth and level of tax base, and some have instituted franchise fees so it is not always valuable to consider such a comparison. He felt the current revised budget was a good settling point as long as residents are educated that road reconstruction costs have been incorporated into the levy. Councilmember Kuzma suggested an article explaining this in an upcoming Ramsey Resident. Mayor Strommen noted that Finance Director Lund does make a public presentation of the budget prior to adoption that includes an explanation of the valuation process and how costs relate to the City's budget. Finance Director Lund stated a Truth in Taxation meeting is required to discuss those issues and that will be on December 9, 2014, prior to adoption. City Administrator Ulrich stated the next Ramsey Resident will not be sent until mid - October but an article could be posted to the City's website. Councilmember Backous stated the budget changes made to reflect Strategic Plan initiatives should also be explained, such as the shift with the EDA budget and that the HRA is not being budgeted for 2015. Councilmember Riley asked for an update on the Economic Development Manager position. City Administrator Ulrich explained at the last meeting, it had been the Council's decision to promote the Assistant to the City Administrator to the Economic Development Manager /Assistant City Administrator and then hire an entry level Public Information Event Specialist. He noted this shift in staffing will result in a budget savings. Councilmember Riley stated he understands the promotion of the Assistant to the City Administrator to the Economic Development Manager /Assistant City Administrator and adding the entry-level communication person but he noted that under Planning and Zoning, it still shows adding an Economic Development Manager. City Council Work Session / September 2, 2014 Page 2 of 9