Agenda - Council - 10/25/2005 - Laserfiche WebLink

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(iouncil. member Elvig stated the fiscal impact study of 2003 projected a revenue screen and urowth in the City at a certain rate. The City has bonded $32 million in the last few months and tt~c 2005 fiscal impact study shows the revenue is starting to slide behind the 2003 projection. It ¢:oncerns him greatly not to slow down growth of government as they see the revenue screen is ~not moving forward as projected. He noted consulting expenses can be shrunk back down, and personnel costs are the area of the budget where the dollars are adding up. Another large area of the budget is for contingencies on the bottom of every line item. He stated these costs are on a bell cra'ye of two to three years, and the CounCil needs to be prudent not to grow the City too fast at tim time of that bell curve. Councihnember Jeffrey stated he agrees there are some increases in contingencies to be addressed. He questioned if all the cuts need to be taken out of personnel or if there are non- personnel expenses that could be cut. City Administrator Norman suggested the Council provide staff with a range of targets for the tax capacity rate. Staff will provide the Council with suggested cuts to reach these tax capacity 1 ares. Councilmember Elvig expressed concern that there are still $300,000 in delinquent water fees that have not been collected while the budget requires b. pproximately $300,000 in cuts. Councilmember Pearson stated Ramsey is eleventh in the comparison with other cities with a 38.5% tax capacity' rate, and if the ~ate is increased to 42% they will move to thirteenth. He stated everything costs more money; he lives in the City and would be willing to pay that imcrease for more services. Councilmember Cook concurred. He stated at a time that the City is growing they need to increase staff as well. The Engineering Department has been stressed to the limits and more Police Officers are needed. He would rather bite the bullet while the levy limits are off to get'to ~.he staff level they should be at. The consensus of the Council was to direct staff to provide the Council with a recommendation on cuts to the budget based on the following tax capacity rates: 39.09%, 39.50%, 40.t9% and 41 38%. Councilmember Strommen requested the Council consider providing funds to the Alexandra t-Jocts~, which-is facing budget cuts from the state. She stated Alexandra House provides a service 'to Ramsey residents, and without the needed funding the program could be eliminated. City Administrator Norman indicated a donation to the Alexandra House' would not require an addition to the budget, as the funds would come from the Council Contingency Fund.. was noted that the City contributes to Mediation Services and Youth First. City Council Work Session / October 11, 2005 Page 3 of 4 -19-