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

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39.35 percent. Ms. Lund stated that in comparison to the 39.94 percent at the Truth in Taxation meeting and what is presented with the $110,000 budget reduction, brings it to a 39.437 percent tax rate. Ms. Lund stated that what is being asked for is either the adoption of the 39.94 percent tax rate or the 39.44 percent tax rate. Ms. Lund stated that it was the recommendation of City Council at last week's meeting to have Staff bring back what they thought they could cut from the budget. Mayor Gamec asked if the $12.00 figure was for the entire year. Finance Officer Lund replied in the affirmative. Mayor Gamec commended Staff on the work they did. Mayor Gamec asked for comments from Staff. Councilmember Elvig stated that he didn't agree with the budget as initially set up, and a handful of Councilmembers were uncomfortable with the last budget. Mr. Elvig stated he was more comfortable with it knowing that the 1% increase over last year didn't cut services. Mr. Elvig acknowledged this is going to be a challenging year. Mr. Elvig stated that if dollars do come in, things can be added. Mr. Elvig stated he was now more comfortable moving forward. Mayor Gamec indicated more people look at the dollar amount reduction than the rate reduction. Mayor Gamec stated that $12.00 is $12.00, and even with valuation increases, most taxpayers are going to look at this as high. Mayor Gamec stated that if Staff felt confident looking at the cuts, he was comfortable with approval. Mayor Gamec stated that the City Council makes final approval, but would not like to see adding things over the year unless the revenue goes up. Councilmember Strommen concurred that she appreciates Staff s work and feels comfortable with the budget. Ms. Strommen indicated that $12.00 a year isn't going to make a huge impact. Ms. Strommen added that City Council clearly gave Staff direction to work though the budget, and Staff ultimately implements the budget. Councilmember Elvig explained that people clearly made their thoughts known at Truth in Taxation. Mr. Elvig stated there are things that are out of the City Council's control such as property valuation increases. Mr. Elvig stated that if property valuation went up by 7% each year and people wanted only a cost of living increase for the City, the City would have to be reducing their budget 12% each year. Mr. Elvig stated he was pleased to say there is an increase in valuation to property. Mr. E1vig noted his concern that property values could go down and the City's budget would have to go down as well, which could result in cutting services. Mayor Gamec explained that contracting services was one area to cut. Mayor Gamec explained that he had Staff prepare a spreadsheet to compare the City of Ramsey Engineering Department with other cities. Mayor Gamec noted the City of Andover has six people in Engineering, Savage has eight people, Champlain has four people, and many other cities have far more Engineering staff than the City of Ramsey. Mayor Gamec explained that the City is looking at having a proposed staff of six, with a change in the Fire Department. Mayor Gamec stated that Special City Council / December 21, 2006 Page 5 of8