Minutes - Council Work Session - 07/31/2007

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levy will need to be set by September 15, 2008. Ms. Nelson provided an overview of the following information: · 2007 Levy & Budget. · 2008 Proposed Levy & Budget o Proposed Total Levy: $8,860,825 o Proposed Tax Capacity Rate: 39.39% o Proposed 2008 General Fund Budget: $10,049,236 · 2008 Proposed Budget Highlights o $453,628 of $749,362 of Ramsey Municipal Center debt service o $249,743 for 2008 debt service of2004 & 2005 Capital Equipment Certificates o $392,200 for 2008 Capital Equipment purchases · Finance Officer Lund provided an explanation regarding the $329,850 in new purchases and $62,350 replacement funding. Interim City Administrator Nelson indicated direction is needed regarding the use of Equipment Revolving Funds. Staff is proposing a total Equipment Revolving Fund transfer of $1,095,571. The current balance is $4,468,500. This is not the long term solution, but for this year it needs to be considered how to structure this. This transfer would take a little off the General Fund tax levy. There was not a lot to deal with this year with property value increases, which made it more difficult to meet the tax rate number. Mayor Gamec indicated he would not want to pull too much from the Equipment Revolving Fund; it was cut down too much in the past which resulted in the need to have one of the highest tax rates. . Finance Officer Lund explained that is the reason for consideration of restructuring the Municipal Center debt, which will be discussed later tonight. Councilmember Strommen asked when the next TIF district will be decertified. Finance Officer Lund replied TIF District No.1 will be decertified in 2011 and will come back on the tax rolls in 2012. TIF District No.2 will be decertified in 2012 and TIF District No.4 in 2013. Councilmember Strommen pointed out that the decertification of the TIF districts will bring in another revenue stream at that time. In the past the Council has been very leery of one time transfers to balance the budget, but she believes this transfer from the Equipment Replacement Fund makes sense given the current balance. She would not want to tack this on to the General Fund when there is over $4.5 million available in this fund. She is comfortable with the transfer while keeping in mind that there are not a lot of revenues going into this fund any longer. There should be consideration of the debt restructuring and the TIF districts being decertified. Councilmember Dehen inquired about the long term if the transfer is done this year. City Council Work Session / July 31, 2007 Page 9 of 18