Minutes - Council - 09/28/2021 - Laserfiche WebLink

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an increase of $2,311,470 or 17.7% from 2021. The general fund budget of $14,543,640 is a 1.11% increase over 2021, and estimated tax capacity rate of 42.943%. Finance Director Lund stated the pavement management levy is the largest segment of the budget, and it replaces the current franchise fee. She added the pavement management levy represents a total increase of $1,673,227, or 72.4% of the total levy. Finance Director Lund stated, with regard to personnel funding, the $557,743 levy increase includes $307,945 for existing employee adjustments and $249,797 for new personnel: a part- time receptionist/secretary; a full-time IT Systems & Security Administrator; and a full-time Parks Maintenance Worker. Finance Director Lund stated the EDA authority has a levy of $75,360, and that stays the same. She added the tax rate of 42.943% was recommended for approval by the EDA Board. Finance Director Lund stated the final budget will be reviewed for approval at the City Council’s December 14, 2021 regular meeting. Preliminary tax statements will be sent from Anoka County from November 8-27, 2021, and the numbers are subject to change until final adoption on December 14, 2021. Councilmember Musgrove asked whether the savings from the bond sale will be used to offset personnel requests. Finance Director Lund stated the bond savings will be a direct result of the reduction of municipal center debt and will not affect personnel costs. Motion by Councilmember Musgrove, seconded by Councilmember Heineman, to Adopt Resolution #21-279 Adopting Proposed 2022 Payable Tax Levies (General, Pavement Management, EDA and Debt Services) and Schedule Public Hearing for December 14, 2021; Adopt Resolution #21-280 Adopting Proposed 2022 General Fund Budget and Resolution #21- 281 Adopting Proposed 2022 EDA Budget. Further discussion: Councilmember Woestehoff stated he cannot support this motion as it is not a long-term plan that will save money, nor a valid replacement for franchise fees. He added the City Council was told that any plan would fully fund the roads without dipping into reserves, but that is not the case. He noted there are other numbers he is not happy about, including a very large impact on the City’s business community, who will have a significant increase in their taxes. Councilmember Woestehoff stated the proposed levy affects the average homeowner more than a franchise fee would have. He added the decision was made months ago to do away with the franchise fee, even though it was the most economical way to proceed. He added $330,000 less for roads is not a solution, or a replacement for the franchise fee but rather a stop gap, which the City Council was told was not going to happen. City Council / September 28, 2021 Page 7 of 18