Minutes - Council - 12/05/2005 - Truth in Taxation

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$24,000 this year is because the City will be using a FEMA grant for the Fire Department. She stated there is a plan check fee associated with building permits that falls under charges for services. That reflected the 981 building units. She stated that fines and forfeitures had a small increase of approximately $26,000. Investment eamings had an increase of $20,000 due to the interest rates going up slightly. Other financing sources show an increase of approximately $413,000. Ms. Lund stated that represents the fact the City is purchasing Capital Equipment Certificates in 2006 for the capitol. Ms. Lund referred to a pie graph indicating an overall breakdown of the expenditure side. The general fund budget is five categories: general government - 25.04% public safety 37.86%, public works - 18.54%, park and recreation -10.17%, miscellaneous contingency --2.67%, and other -5.73% debt service interfund transfers. Ms. Lund explained that all City budgets have to balance with expenditures equaling revenue. The total 2006 General Fund budget equals $10,162,600 in comparison to $8,806,017.00 for 2005, which represents a 13.35% increase. Ms. Lund noted that major administrative changes in expenditures for the 2006 budget as being the addition of one police officer, a street maintenance worker, an engineering tech, a half time building maintenance person, and the fire department secretary from half time to full time. Ms. Lund explained that all departments were affected by the change in PERA rates and there is a possibility of an increase of 3% in salary and benefits. This is an election year so election judges were included in the 2006 budget. Finance positions were reclassified reflecting an increase. Data processing increased by approximately $37,000 because the City is on a rotating schedule for new computer equipment to stay up to date. The police department had three replacement squads and two administration cars, which will be used by the Chief of Police, Captain, and investigators. Ms. Lund noted that the Police Department personnel increased by one police officer, the PERA increased, and they are looking at purchasing a copy machine. The Fire Department secretary went from half time to full time. Civil Defense will be replacing two civil defense signals throughout the City. Engineering has an addition of one engineering vehicle. Street Maintenance and Park and Recreation will have expenditures of $100,000 for the street maintenance program, and share the cost of a snow plow track, a paver, and a sidewalk machine with the Park and Recreation Program. She stated that there will be additional expenditures with the price of natural gas. Ms. Lund stated that $1,000,000 may seem like a large number, but Ramsey has been cut almost $200,000 in market value homestead credit, and the EDA levy has been increased by approximately $150,000, which is included in the $1,000,000. She stated that the City did a personnel study even before Town Center was proposed, and that does not constitute a reason for adding personnel. She explained the increase in personnel was based on the population of the City. Additional positions were actually put into the proposed 2006 budget before the Town Center was even proposed. She added that the population is still growing. Ms. Lund stated the 2006 budget includes approximately $139,000 for a new City Hall to be spent from the tax base for City of Ramsey residents. She indicated the majority of that debt service was picked up by internal funds that the City has currently on hand. Mayor Gamec stated that the Council begins working on the next year's budget in February prior to setting the levy. He stated the Council's major concern for citizens is providing services, meaning police, fire, street maintenance, and parks. He explained that the City has had a tremendous amount of City Council Truth in Taxation/December 5, 2005 Page 5 of 13