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City Administrator Norman indicated his recommendation and that of the Finance Officer is the <br />proposed budget of $10,479,527 incorporating the 39.1985% tax capacity rate. <br /> <br />Councilmember Pearson questioned if staff is agreeable to this proposed budget. <br /> <br />Public Works Director Kapler replied staff sees any cuts as less than what was recommended <br />with a growing community. However, they are only one spoke of the wheel, and the whole <br />wheel is needed to make it work. <br /> <br />Mayor Gamec stated this budget based on the 39.1985% tax capacity rate is ridiculous. He <br />questioned what the City will be looking at next year if there are levy limits and freezes. He <br />looks at what the tax burden will be on a household. No one likes to raise taxes, but they need to <br />look at whether the City is falling behind on their services. <br /> <br />Councilmember Elvig stated he has not heard that the City is falling behind. Public Safety has <br />gone up 21% across the board, while population has gone up 13%. He does not hear complaints <br />about service, and he thinks the City is keeping up well. The City's fiscal analysis shows a two <br />to three year bell curve to be mindful of. The City has raised values and they should stay within <br />the confines of those values. The City needs to slow down to match their revenue stream, being <br />especially mindful of the bell curve. <br /> <br />Mayor Gamec expressed concern with cuts being made, which will then require the City to catch <br />up with staff in the future. <br /> <br />Councilmember Pearson concurred. <br /> <br />Councilmember Strommen asked how many new staff positions were included in the preliminary <br />budget adopted in September. <br /> <br />Finance Officer Lund replied the preliminary budget included 8 ½ new employees. <br /> <br />City Administrator Norman advised 2006 is a heavy hiring year for the City, even with the <br />recommended budget and tax capacity rate of 39.1985%. <br /> <br />Councilmember Cook commented it would be irresponsible to hire people if it is not known that <br />the necessary funding will be available in 2006 and 2007. He suggested waiting out the two-year <br />bell, rather than hiring people they are not certain can be kept on. <br /> <br />Councilmember Jeffrey stated he goes through this budget process every year in his position at <br />the college because they never know what will happen to the budget. They live with what they <br />are given and make changes as they need to. He is a big fan of not hiring and then having to let <br />employees go, and he agrees they need to be more conservative this year. Also, a larger amount <br />would be needed from the Landfill Tipping Fund to balance the budget next year if the Council <br />determined to go to the maximum rate and needed to use the Landfill Tipping Fund again next <br />year. <br /> <br />City Council Work Session / November 1, 2005 <br /> Page 4 of 7 <br /> <br /> <br />