Agenda - Council - 04/26/2005 - Laserfiche WebLink

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lSnance ()f~cer Lund explained to balance the 2006 General Fund budget with no increases $233,095 will be needed. To keep the tax rate at 38.15 an additional amount of $755,000 will be needed. She reviewed the following information: ~ Alternative funding scenarios o I,andfill Trust Fund o Capitalized Interest o 2005 Excess General Fund Revenues © Reduce General Fund Levy. ~ l'ropcrty tax rate information - 2006 Proposed Budget Mayor Gamec noted the 2006 proposed budget does not include any new employee positions. I lc stated he does not like sacrificing everything else for City Hall. Several years ago they did not hire any new employees and then had to make up for it. Even if nothing else happens in the City there will be growth, and more personnel will be needed. ["inancc ()fl~cer Lund indicated the levy was increased last year, which should be taken into consideration il' the Council wants to keep the rate at 38 percent. Mayor (iamcc noted fi'anchise fees could be needed again if there were to be a freeze on levies. Councilmcmbcr Cook stated in the long run the tax jump in 2005 is not too serious, and services should not be cut to cover the jump. It would be nice to say they kept the taxes the same, but this is a one year jump. Councilmember Elvig stated they are looking at the ability to cash flow. There will be revenue coming in fi'mn developers and other things that play into this, and there is a lot of room between capital interest and the Landfill Trust. The Council asked for an understanding about the alternatives and what has been presented is not something that will necessarily be adopted tonight. I lc stated he feels very strongly about keeping the taxes at the same rate. t"inance Officer 1,und noted at the last work session the Council discussed borrowing $1,000,000 l'rom thc I,andfill Trust Fund. There is a large amount of money sitting in this fund that is not designated to specific projects. Borrowing $1,000,000 from this fund without paying it back would still leave an approximate $3,000,000 cushion in the fund. She advised the current policy requires a $250,000 principal balance to remain in the fund. (~> u nc il m em ber Pe arson stated the Landfill Trust Fund would be a good tool to use. Councihnen~ber Elvig noted a one year spike in the tax rate is forecast, and there appears to be enough tools to work with to address the spike. Councilmcmber Strommen indicated they should be sure there is enough of a cushion for the event of a longer spike than expected. City Council Work Session/April 5, 2005 Page 2 of 6