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