Minutes - Council Work Session - 10/11/2005

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Councilmember Elvig stated the fiscal impact study of 2003 projected a revenue screen and groxvth in the City at a certain rate. The City has bonded $32 million in the last few months and the 2005 liscal impact study shows the revenue is starting to slide behind the 2003 projection. It concerns 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 tl~e budget is for contingencies on the bottom of every line item. He stated these costs are on a bell curve of two to three years, and the Council needs to be prudent not to grow the City too fast a~ thc time of that bell curve. ('ouncilmcmber Jcffi'ey stated he agrees there are some increases in contingencies to be addressed, tte questioned if all the cuts need to be taken out of personnel or if there are non- personnel expenses that could be cut. ('ily Administrator Norman suggested the Council provide staff with a range of targets for the t~tx capacity rate. Staff will provide the Council with suggested cuts to reach these tax capacity rates. ('ouncihnember Elvig expressed concern that there are still $300,000 in delinquent water fees that have not beeu collected while the budget requires approximately $300,000 in cuts. (;ouncihnember Pearson stated Ramsey is eleventh in the comparison with other cities with a 38.5% tax capacity rate, and if the rate is increased to 42% they will move to thirteenth. He s~atcd everything costs more money; he lives in the City and would be willing to pay that i~crcasc For moro services. (mmcihncmber Cook concurred. He stated at a time that the City is growing they need to increase slaff as well. The Engineering Department has been stressed to the limits and more Police ()fficers are needed. He would rather bite the bullet while the levy limits are off to get to the stal'f' level they should be at. ~l he consensus of the Council was to direct staff to provide the Council with a recommendation on cuts to thc budget based on the ibllowing tax capacity rates: 39.09%, 39.50%, 40.19% and 41.38%. Councilmember Strommen requested the Council consider providing funds to the Alexandra l[ousc, 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. (;ity Administrator Norman indicated a donation to the Alexandra House would not require an addi tion 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