Minutes - Council Work Session - 07/10/2007

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Councilmember Jeffrey stated the rate needs to stay the same as the 2007 rate. He asked whether this budget discussion will resolve the previous worksession discussion on how to pay for street improvements and overlays. Public Works Director Olson indicated the budget reflects the City taking on $90,000 for 100% of the sealcoating costs. As per the direction at the last meeting overlays will be assessed at 50/50. Councilmember Strommen stated it is a reasonable target for the tax capacity rate to remain the same as 2007, although it would be great if it could be lowered. Councilmember Olson concurred. Interim City Administrator Nelson indicated approximately $125,000 would need to be cut from the budget to get back to the 2007 tax capacity rate. Counci1member Look stated he would like to keep the tax capacity rate the same as 2007, with the $90,000 sealcoating accounted for and cut somewhere else in the budget. Councilmember Dehen concurred. Councilmember Elvig stated he would like to look at the budget further. He is always of the opinion that keeping the rate the same or going down is good. . Interim City Administrator Nelson indicated they have discussed at length as a department head group about whether the proposed uses are appropriate for charitable gambling funds. The City pays approximately $35,000 per year to the community school program, which basically funds a position at Ramsey Elementary to do that program for the community school. $5,000 is funded to Youth First and $10,000 to the Juvenile Diversion Program run by the Boy Scout organization. This program takes youth with minor legal offenses and puts them through a diversion program to prevent problems in the legal system further down the road. Fire Chief Kapler stated he was involved with the Juvenile Diversion Program during the arson case. The program gets the family involved with younger kids and takes it out of the legal setting. He was impressed with the program. Councilmember Strommen stated it has been an effective program. Councilmember Elvig stated he believes the City only gave $2,500 to the Juvenile Diversion Program. The County has participated with the program and the Boy Scouts fund most of it. Finance Officer Lund indicated she believes the City pays this program through a quarterly invoice. Staff will verify this. Public Works Director Olson indicated the balance in the Lawful Gambling Fund is approximately $250,000. Each year the fund receives an income of about $36,000. ParkslUtilities Supervisor Riverblood is here to talk about what the fund has been used for in the past as far as amenities are concerned. In the past the fund has been used to pay for park projects. City Council Work Session / July 10,2007 Page 5 of6