Agenda - Council - 02/14/2006 - Laserfiche WebLink

Home

Ms. Lund explained the reason behind increased spending resulted from personnel and capital, ladder track, plow trucks, staffing of public works department and building inspectors. She stated that approximately the year 2000, the City had only 30 employees. Ms. Lund stated that with growth, public works staff has increased. City Administrator Norman stated that in the same period, the government aid decreased by over $1,000,000. Mr. Hartman asked if these were controllable expenses or uncontrollable expenses. Mayor Gamec stated they are controllable because streets don't have to be plowed and services could be cut. He stated a lot of spending can be controlled but citizens make complaints and demand expectations. He stated laws have changed, and insurance has gone up, but the City services have improved after falling behind in the past. Mr. Hartrnan stated he has no argument about what the City needs. Mr. Hartman stated there are some things that are uncontrollable like fuel costs. Mr. Hartman asked for clarification about unions and other controllable expenses. Mayor Gamec stated that current City Hall heating system needed replacement, but in the long range, a new City Hall will cut costs. Councilmember Cook explained that a large part of spending increases is personnel. He stated the City has parks and trails that require personnel and it is a matter of paying for the use, and asking whether it ! worthwhile to citizens. Councilmember Cook stated that growth is a benefit to the City that, in the lon mn, will reduce taxes and give the City a more stable tax base. Mayor Gamec concurred, adding that trails are now plowed by the City to get the kids to school, that cost was shifted to the City. Mr. Hartman referred to the disparity in total revenue versus total expenditure line items in the 2004 budget. Ms. Lund stated that the policy is to have 60% in following year's budget carry over for the following year. She explained that anything that is left over goes to the public improvement fund to help pay for assessments at a later date for projects, an equipment replacement fund for capital improvement items, and for public buildings. City Administrator Norman stated that answers the question about what the City does with that money. He explained that when the City goes through growth years it is difficult to estimate how to budget for building permits. The City Council directs staff to plan for growth so the budget allows it, but it presents a risk if the housing market declines. Mayor Gamec stated that this year, the City building permits are at around 350, but the budget plan was for approximately 400. He stated that when the previous year budget shows excess revenue, those were City Council Truth in Taxation/December 5, 2005 Page 10 of 13 -'/8-