Minutes - Council Work Session - 07/31/2007

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Finance Officer Lund replied that will be presented with the discussion of the Municipal Center debt restructuring. They will look at restructuring the debt in 2009,2010,2011 and 2012. There will likely be more growth with the City. Councilmember Elvig indicated he does not mind the transfer with the size of the fund, and using interest from pre-taxed monies is a good way to use the money. It makes sense to do this transfer. In relation to next year, the City went forward with this entire project doing a performa based on 10, 15 and 20 years out. That performa looked at building and the types of growth the City would like to potentially see, incomes, housing, industrial, etc. That study included a fairly conservative approach of down times. The good news is they felt they had the reserves and revenues and a reasonable balance. They should look at restructuring to catch up with the down time of the economy and give more time to balance this as the economy starts coming back. The point is that they need to keep their eye on the ball, and he appreciates staff doing that. Consensus of the Council was to direct staff to proceed with the Equipment Revolving Fund transfer of $1,095,571 in the 2008 budget as proposed by staff. Councilmember Jeffrey stated he is anxious to look forward and see that this transfer is a one time thing. Interim City Administrator Nelson indicated staff understands this transfer is not the long term solution. Interim City Administrator Nelson provided an overview of the following options to maintaining the tax rate from 39.9646 to 39.3903: · Eliminate new positions o $129,684 for new Patrol Officer and Recreation Coordinator ($61,102 & $68,582 respectively) · Street Maintenance o $90,000 - 50% Sealcoating in General Fund (previously assessed to property) Interim City Administrator Nelson stated these two options represent new programs/staff in the budget document presented on July 10, 2007. Other options would be reductions to General Fund line items or capital. To reach a .5743 tax capacity reduction, $129,655 in cuts is required. Ms. Nelson stated it should be reiterated that this year the department head group has taken a different approach to the budget and went through the line items with many line items being trimmed. . In order to go beyond the currently proposed line items there will need to be a discussion of what services will stop or not providing certain services to staff. Mayor Gamec stated every time they have eliminated a police officer position they end up hiring two or three the following year. With the recreation coordinator position, more and more the City is getting involved with this type of activity. They may have spent the amount allocated for this position on overtime from soccer fields and different things like that. Councilmember Elvig commented this type of position could be a revenue generator. City Council Work Session / July 31, 2007 Page 10 of 18