HomeMy WebLinkAboutCity Council Minutes 08-22-2006 SpecialAdopted Minutes
Special Council Meeting
August 22, 2006
Mayor Johnson called a Special Meeting to order in the Public Safety Training Room,
3400 Plymouth Boulevard, on August 22 at 5:00 p.m.
COUNCIL PRESENT: Mayor Johnson, Councilmembers Hewitt, Slavik, Stein, Black,
Willis, and Bildsoe (arrived at 5:20 p.m.).
ABSENT: None.
STAFF PRESENT: City Manager Ahrens, Police Chief Goldstein, Support Services
Supervisor Cox, Deputy Fire Chief Hurr, Fire Chief Kline, Housing Manager Barnes,
Assistant City Engineer Beckwith, Park and Recreation Director Blank, Administrative
Services Director McGann, Financial Analyst Kohn, and City Clerk Engdahl.
Proposed 2007 Budget Tax Levies and Capital Improvement Program
Administrative Services Director McGann provided an overview to the Council on staff's
proposed 2007 budget and tax levies. She stated a total levy of $25,464,551 is proposed
with an overall property tax levy increase of 7.15%. The Housing and Redevelopment
Authority (HRA) is proposed at $503,617. She stated it's anticipated that the City would
receive $540,000 to $560,000 in market value homestead credit, and 100% of this would
be allocated towards street reconstruction. She noted that the impact of the levies to the
residential homeowner with a property value of $367,900 (2005 average home sale price)
is estimated at $35.90 for the City's portion of the property taxes. She discussed all the
recommendations for increased services as outlined in the budget materials. The
proposed expenditures are for various capital equipment and infrastructure items, staffing
recommendations, and technology items. She stated the proposed budget also includes an
increase in working capital of $350,000. She noted significant inflationary costs to the
street maintenance budget, the City's contribution to the Public Employees Retirement
Association, security costs for the Public Safety building and City Hall, and electrical
costs.
She noted there are two areas for the Council's consideration that aren't included in the
staff s proposed budget. The first area is the Police Department's desire to hire two
additional police officers and a crime analyst in order to start a program where the
department is proactive rather than reactive. The Police Department has done a
significant amount of research related to this objective and has also made inquiries of
several other cities to see if they would be willing to share a crime analyst.
Unfortunately, this effort was unsuccessful. If the Council desires to proceed with this
Adopted Council Minutes
Special Meeting of August 22, 2006
Page 2 of 3
initiative, the total cost of implementation is $214,712, and in order to fund the program,
the property tax levy would need to be increased by .903% over 2006.
She stated the second area is whether to consider increasing the property tax levy for
additional street reconstruction. Over the past few years, the street reconstruction
program has been paid for both with the property tax levy and general obligation debt.
Staff is recommending issuing additional debt in 2007 for this program. Property taxes
would not be impacted until 2008. Any increase in the property tax levy for street
reconstruction would reduce the amount of debt required to be issued. For each 1 % the
property tax levy is increased, an additional $237,645 of revenue is generated. She
reiterated that the anticipated $540,000 to $560,000 in market value homestead credit
would be directed to the street reconstruction program.
She noted that if the Council desired to pursue the above alternatives, the total levy
increase would be 9.05%.
Regarding the Capital Improvement Program (CIP), Financial Analyst Kohn stated that
staff is currently reviewing the requests that have been presented and will be preparing a
modeling for each funding source. He stated staff would have this information available
for the Council's next budget Study Session on August 29.
Councilmember Willis stated in reviewing last year's CIP, he would like to see the type
of inflationary costs on a project basis. He explained that costs to the CIP will increase
faster, and he is concerned about capital investment as it relates to replacement of
investment assets.
Councilmember Bildsoe requested that for the August 29 Study Session, he would like an
overview from the Police Department on their staffing alternative.
The Council stated for both alternatives that were presented above, they would like to
know the impact these would have on a per household basis.
Councilmember Willis stated he is concerned about trying to allocate more funds to the
street reconstruction area. He noted that when operating expenditures are increased, it
affects this area.
Councilmember Black requested a report on the plastic/recycling volume in the City
parks for the August 29 Study Session.
Mayor Johnson added that she would also like to know what the school districts and the
county are doing with their levies.
Financial Analyst Kohn commented that the Council would be reviewing the water
resources fund at the August 29 Study Session.
Adopted Council Minutes
Special Meeting of August 22, 2006
Page 3 of 3
Adjournment
Mayor Johnson declared the meeting adjourned t approxim ely 6:30 p.m.
andra R. Engdahl, ity Clerk