Minutes - Council Work Session - 08/23/2022

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Acting Mayor Riley asked if there were any further questions or discussion around the Recreation Specialist. Hearing none, Acting Mayor Riley asked Finance Director Lund to continue her discussion. Finance Director Lund began discussing the updated general fund with the fiscal disparity distribution, which increased by approximately $40,000 which is not a huge effect on the tax capacity rate, noting that it went from 41.57% to 41.47%. She stated that option three is what is being used and if there is a 10% general fund levy increase which would have to reduce the budget by $448,000 and an 8% general fund increase would need a budget reduction of $682,000. Acting Mayor Riley asked if even though the Council is discussing a very large increase, the tax capacity will go down because the property values are going up by a bigger number. Finance Director Lund stated that this is correct and it would be reduced about $185,000 based off of the levy from the capital equipment that would be applied. Councilmember Musgrove asked Finance Director Lund what the percentage is for the tax capacity in 2022. Finance Director Lund directed Councilmember Musgrove to where in the packet she could find the number. Acting Mayor Riley stated that the tax capacity was 42.438%. Councilmember Specht mentioned that it looked like even if it was switched to 20 years versus 15 years it is a minor difference per year. Acting Mayor Riley added that 15 years seemed to make the most sense, assuming that the money was needed for the roads. He explained that he does not like where this is ending up; however, he cannot complain about any specific thing going into it. Councilmember Musgrove thanked Staff for the hard work that was done on this. She added that she thinks that the Council has not only been able to continue with the plans of the roads on the CIP, but also get the other items caught up. She mentioned that she hears from residents about the roads and what the needs are for them and she wanted to thank Staff for being able to work this out. She noted that it appears there will be a little bit more of a decrease with the earlier discussion and she is happy to see the tax capacity is coming in less. Acting Mayor Riley mentioned that if the rescue squad vehicle is taken out it would just go back into the fund and sit there for next year’s spending so it would no longer have a budgetary effect on this year, it is just a matter of when it is funded. Finance Director Lund said that is correct and the only effect on the levy is the $185,000. Acting Mayor Riley asked if the budget part of the question has been taken care of for this year. City Council Work Session / August 23, 2022 Page 14 of 16