Minutes - Council - 12/21/2006 - Special Meeting

Home

Fire Chief Kapler replied that the turnout gear racks will be taken out of the area and this is a good short term resolution. Motion by Councilmember Elvig, seconded by Councilmember Jeffrey, to approve the upgrades and authorize the work to be done per estimates provided using the Equipment replacement fund. Motion carried. Voting Yes: Mayor Gamec, Councilmembers Elvig, Jeffrey, Pearson, and Strommen. Voting No: None. Absent: Councilmembers Cook and Olson Case #2: Review and Adopt 2007 Tax Levy and General Fund Budget Mayor Gamec stated this budget came back from the last council meeting after Staff was asked to look at possible cut backs of $235,000. City Administrator Norman explained that Staff was directed to look at approximately $260,000 in cuts. Mr. Norman stated Staff did work with the proposed budget cut. Mr. Norman indicated that Staff was only able to reduce the budget $110,000 without any significant reduction of services. Mr. Norman indicated that the highest amount suggested to cut was in Consulting Services but that actually was one of the more vulnerable areas with greater needs, especially considering administration transition. Finance Officer Lund explained cuts were made in wages and salaries under the Contingency Fund relating to a salary study in the amount of $33,430. That study is being cut in 2007. Ms. Lund indicated that a cut was made of $12,000 for Police Department Uniforms and $5,000 for the Fire Department Uniforms. Ms. Lund noted a cut made to Small Tools for Data Processing in the amount of $12,670, and $3,200 for the Fire Department. Ms. Lund indicated that the cut items relating to Engineering and Planning has a $10,000 match that goes with the TH 10 study, and an additional $15,000. A cut was made to the Park and Recreation Miscellaneous Supplies in the amount of $2,000 and Professional Services in the amount of $5,000. Ms. Lund indicated that $1,900 was cut in Data Processing. Ms. Lund explained that the total amount comes to $110,000 in addition to what was presented at last week's City Council Meeting. Finance Officer Lund explained that last week, the City Council saw a tax capacity rate of 39.94 percent. Ms. Lund stated that if the $110,000 cut were put into place, it would bring the tax rate down to 39.44 percent. Ms. Lund indicated that would result in a $12.00 reduction to a property valued at $250,000 for the taxpayer. Finance Officer Lund explained that Staff looked at the $265,000, which would bring the tax rate down to 38.75 percent, and it just could not be done in 2007 without cutting services. City Administrator Norman asked Finance Officer Lund to walk through an explanation of the tax rate. Finance Officer Lund explained that at the Truth in Taxation hearing on December 4, 2006, the rate was 39.94 percent. Ms. Lund stated that stays pretty much in line with last year's rate at Special City Council / December 21, 2006 Page 4 of8