3.0. SR 12-08-1993
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TO:
FROM:
MAYOR & CITY COUNCIL
PAT KLAERS, CITY "~~RATOR
DECEMBER 3, 1993 1)?'
DATE:
SUBJECT: 1994 BUDGET
The City of Elk River General Fund Budget Public Hearing is
scheduled for 7:00 p.m., Wednesday, December 8, 1993, at the
Elk River City Hall. This public hearing is required by the
Truth in Taxation Law. The purpose of the public hearing is to
receive citizen input on the proposed 1994 City of Elk River
budget.
Notice of this public hearing has been sent out by the County
to each property owner within the City along with information
on the property owner's proposed taxes. Additionally, a public
hearing notice was published in the 12/1/93 Elk River Star
News. Information on the budget public hearing and the 1994
tax rate was also published in the December City newsletter.
.
At the September 8, 1993, City Council
proposed maximum balanced budget in
was agreed upon by the City Council.
proposed to increase 12.92% in 1994.
budget worksession, a
the amount of $3,394,750
The City budget is
This budget increase will result in a tax increase to our City
property owners. This tax increase is due to a variety of
reasons including:
1. The City ra~s~ng tax revenues.
2. The property values being increased by the County
Assessor.
3. Action by the State Legislature including; I.} the
shifting of tax burden from commercial and industrial
property to residential property which has caused the
City net tax capacity to be stabilized in spite of
rapid City growth, and, 2.} a shifting of property
taxes from the high valued residential property to
the low/mid value residential property.
.
The tax increase in the rural district is substantial in 1994.
This is due to a change that took place last year very late in
the budgeting process which caused the rural rates to decrease
significantly. The large increase in 1994 is a correction of
this decrease in 1993, and this issue has been discussed in
detail with the City Council in the past. This major increase
could be a significant issue at this budget public hearing.
However, this issue has been publicized and the City has
received very few calls regarding the Truth in Taxation public
hearing.
P.O. Box 490 · 13065 Orono Parkway · Elk River, MN 55330 · (612) 441-7420 · Fax: (612) 441-7425
.
.
.
The tax increase in the urban district is more typical of what
is happening in Elk River because of the three factors noted in
the above paragraph. It is unmistakable that taxes are
increasing in the city of Elk River due to, in some part, an
increase in spending by the city. The city has kept spending
down in the last five years due to the levy limits that were
placed on the City. During these periods of high growth, our
tax rate decreased. In 1994, taxes are proposed to increase
due mainly to an increase in personnel. Personnel is roughly
two-thirds of the City budget, and, if we are making increases
in this area, then generally speaking, expenditures are going
up and taxes sometimes will also go up if the increase in our
City net tax capacity does not keep pace. The City tax rate is
going up at the same rate as the School District and the
County. These are the other two government jurisdictions that
comprise the local property taxes.
The City has new Truth in Taxation requirements placed upon it
in 1994. The new informational requirements relate to City
employees. These new requirements are outlined below and
indicate what the City must discuss at the Truth in Taxation
public hearing.
1 .
The percent of total proposed budget representing
total compensation costs for employees (wages,
salaries, benefits, etc.);
2. Numbers of employees by general classification, and
whether they are full-time or part-time;
3. Budgeted expenditures for and numbers of consultants
and other independent contractors; and,
4. The effect of budget increase or decreases on the
proposed property tax levy.
At the 12/8/93 Truth in Taxation Budget Public Hearing, the
City staff anticipates reviewing the proposed 1994 General Fund
budget. Following this review, staff will be prepared to
discuss the reasons for the budget increase and the associated
tax increase. Following this discussion, staff will review the
items listed in the above paragraph in order to be in
compliance with the Truth in Taxation requirements. Finally,
following the Truth in Taxation requirements, the City staff
will then be prepared to respond to questions from the public
and the City Council.
At the 12/8/93 Truth in Taxation Public Hearing, as much detail
on each individual departmental budget as deemed necessary by
the City Council can be provided. The level of detail offered
by the staff may depend on the number of citizens in attendance
at this meeting. In general, the City Council should be
familiar with the proposed 1994 budget document as it has been
reviewed with them at worksessions in August and September.
.
This public hearing will concentrate on general fund activities
as this is typically what the taxpayers refer to when
discussing city spending.
The following list of items are attached to this memo for your
review:
1. A League of Minnesota Cities memo that discusses potential
LGA cuts in 1994. If the cuts as outlined in this memo
take place, it will reduce the City's 1994 revenue by
$49,000. This most likely will require spending cuts from
the proposed expenditures in 1994.
2. An article from the 11/27/93 West Central Tribune
(Willmar) newspaper that discusses the local government
trust fund. This article also refers to the shifting of
over $100,000,000 worth of expenses into this trust fund
which has created the LGA deficit potential for 1994 that
is discussed in the League memo.
3.
.
Two articles from the 11/22/93 St. Paul Pioneer Press
that discuss taxes. The first article indicates that it
is about time that residential property owners pay their
fair share for government services. The second article
presents an opposite point of view in terms of homeowners
not being ready to accept this political and financial
reality.
4. Some City of Elk River tax rate information as prepared by
the Finance Director. This information has previously
been distributed to the City Council.
5. A list of answers to anticipated questions that the
Council may receive at the Truth in Taxation hearing.
These answers are prepared by the Finance Director and the
questions come from the "Understanding Your Property
Taxes" booklet that is published by the Minnesota
Taxpayers Association.
.
6. Some statistical information from the Finance Director
that covers the four Truth in Taxation requirements.
This information must be discussed at the Truth in
Taxation public hearing.
7 .
Some information from the Finance Director on tax rates
for comparable metro and non-metro communities. This
handout also shows what effect a levy reduction at the
City level would have on typical Elk River properties. It
will be difficult for the City to reduce its levy $50,000
or even $25,000 without cutting personnel or services. A
levy decrease in either of these amounts has a relatively
minor effect on the overall tax bill. The effect of a
levy reduction in either of these two amounts at the local
.
.
.
level may not justify the service reductions that would
result.
8. The 9/8/93 City of Elk River budget worksession minutes.
This information should refresh the City Council's memory
on what the budget was like as originally proposed and
what changes were made in order to produce this draft
budget.
9. The resolution that authorizes the levy as proposed in the
draft 1994 budget. Please note that this resolution
cannot be adopted at this 12/8/93 public hearing. This
levy resolution can only be adopted at a subsequent public
hearing at a future City Council meeting.
10. The draft proposed 1994 Municipal Budget.
If any Councilmembers have any questions regarding the budget
proposal or the public hearing, please feel free to call me
before the meeting.
Wail 2 9 1993
League of Minnesota Cities
3490 Lexington Avenue North
St. Paul, MN 55126
(612) 490-5600
.
MEMORANDUM
TO:
FROM:
City Clerks and Managers
Jim Miller {)....:- IY/ ~
Executive m1ector
DATE:
November 24, 1993
Potential 1994 state aid cuts
RE:
Although the November 23 state budget forecast projected a $414 million surplus for the state's
general fund, the Local Government Trust Fund did not fare as well. In fact, the new forecast projects
that the LGTF will face a $44.3 million shortfall by the ~d of the biennium. Under current law, local
government aid and homestead and agricultural credit aid payments scheduled for July and December
of 1994 will be cut if the LGTF deficit is realized.
~
.
According to State Revenue Commissioner Morrie Anderson, any necessary cuts will not be
based on the November 1993 forecast. The final determination for cuts will be based on the March
1994 state budget forecast and on any legislative actions that might modify the status of the LGTF. He
also specified that these potential cuts will not affect the December 1993 aid distributions.
The LGTF shortfall is due to two developments. First, the expectations for sales tax revenue
growth for the current biennium have been substantially lowered. The second, and more significant >
development is related to recent legislative actions. Beginning this biennium, the legislature added the
property tax targeting program and the homeowner's circuit breaker to the LGTF. These transfers will
cost the LGTF at least $126 million, which will significantly reduce the money available for city
programs. At the same time, these transfer. have effectively added at least $126 million to the state'.
general fund surplus. Although cities generally agreed to live with the fluctuations in the LGTF, we
" have strongly opposed legislative actions that have increased the number of non-city programs funded
by the LGTF.
According to our best estimates, the $44.3 million LGTF shortfall would result in 1994 aid
reductions equal to approximately 2 percent of each city's 1993 certified levy plus 1993 LGA and 1993
taconite aid, for taconite cities. Therefore, do not use the 1994 certified levy to estimate the impact of
these cuts. Any reduction could not exceed the amount of LGA and HACA your city is scheduled to
receive in 1994.
.
The current LGTF forecast does not paint an optimistic picture for the remainder of the
biennium. We encourage you to consider the impact of potential cuts before you set your final 1994 >
levies and discuss this issue with your taxpayers at your truth in taxation hearing. If you have any
questions, please contact Gary Carlson at the League offices.
.
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BILL SALISBURY
".
J;~.:r";:'~ The prope~y tax ~ate on big businesses
'.;,w~,about 41,2 .times higher than it is on a
:,(~ ,mOdestly priced home, and the rate for
/~;L~partments is abo';lt 31,2 times higher
, ri tha~ for homes. Minnesota's taxes on
~;ll1usmesses and apartments are among .'
,.\, the highest in the nation, while its taxes .
~;~;on lower-priced homes are among the
:'",)owest. .'
"'./; ," That discourages businesses from 10-
~ ~' cating or expanding in Minnesota and
, ~~'::x>.ushes u~ rents. It also has the effect of
;.~~...encouragmg homeowners to demand
~~rparks, schools, libraries and other local
, ;~;~: ~overnment services without having to
, :i~: I?ay the full cost because businesses and
: ,"L apartments foot most of the bill. .
i .-tcou Most reasonable people would agree
: J Ei(t~ ~~e .proP7rty ~x system is un_~ait. . " .
; ,~{,;::> ,The elItes want to double most home-
. '. \ t owners' property tax bills:'Many endorse
; ~,ll! raising ~he tax rate on homes valued at
, ,.)fn.$72,OOO or less from 1 percent to 2 per-
~ ,~'i~~~ent, while lowering the rates for busi-
, , ',.:;;:l!esses and apartments. . . '.
.'i~~~.,-!. ~he Minnesota Legislature hasn't. '.
:.~ ~:r1~ Dought int? that idea yet, but it has s.tart-
<.. j;:', ed ratchetmg do.wn tax rates for bUSI- .'
1:'~~\: nesses a,n? apartments. The top'rate for'
;777 large' buslDesses; for example, has,.
;. ?(; dropped from 4.95 percent in 1991 t04.6':
Ii ;.;:~ ~percent for 1994::,~/,' ',:' ,;
l;'~fi The lower tax rate; combined with a',
j : ):~;K ~ec~ine in. the ma~ket values of St. Paul
i;::J;\ busmesses, has shifted more of the prop.,
: '....'..~,:. erty tax burden onto homes in the city. ..,'
f ;k~' Thatcontrlbuted to the whopping tax in~.'
'" L.creases proposed for homeowners. . .
" ?", . The elites would argue that's a trend in
'h the right direction. Homeowners plainly,
<i::" don't like it.d~-:{';' \. .'
, '.' ',: j Theeuteswould cushion the blow to
, '..t: ihomeoWners by'providing property tax
. ';. ~.'.,! relief based on income - a program
. <.01. :~'I known a. s the u. c.irCUit breaker" - so no
') ~{ o~e's tax'!ould exceed 2 or 3 p~rcent of ,
"; .4<';'.' hIS or her lDcome. But that cushIOn', . -
",'~~wouldn't prevent most middle-class" .
. n~!;,ho~eownersfrorn.ge.tting hit with hefty,
. .'fcj tax mcreases.";;\',it:,",<,':' :..: '
:, ;;t\{;.. In 1991, GOY; A.rneCarlson proposed a',
;,/l{~version of the elite's property tax reform
! ,E~;: plan. When homeOwners found out that it
I, ' , ;~~; would double their taxes, they were out-
!!;i: raged. Carlson never has fully recovered
I;, .'Jr): from the political beating he took on that
I i r~I;:~~~r::{~~i;:f~~:e~;:::~l~e-
I f.{{ clearly like the policies that have kept
~:. t. their taxes artificially low, and'they
don't take kindly to politicians who jack
", up their property taxes. . .'
.>('{' Thee~tes' pl~n ~ay so.u~d gOO? ~n the-
:1:' lOry, but m realIty It'S political SUICide.
~.~~.~.--,):-~"-~ ,.... . .
. ::~::'{'1S;/:~~i;~'~ -;-
i,.~~
--14t1t1anb~
SAINT PAUL PIONEER PRESS
, .. ....
;,..- _.
t n,,'-,
,.
Jrax inequity cure
;::::E.is politica~Xsuicide "
,-. ... "n'..'> ' .
. ",:..~H ere's' ~ great
'.J '~'fdea. Let's raise' ,
. -;''''liomeowners' prop~,
"~~::erty taxes through
....the roof.
,.:,;:-:: After all, they
.~" aren't paying their
-."',"'fair share now. If
~':';::they paid more, . . STAFF COLUMNIST
'':.''--they would realize
the real costs of the
local government
--services they de-
I """,mand.: }
<"'". That, in a nutshell, is the conventional
:;;';;'wisdom among the elites who want to re-
::::'::lorm Minnesota's Byzantine property tax
,'...."system. , . \
: ::': T~e elites got a strong dose of political :
. . ,.@..realIty therapy last week from St. Paul'
:::;homeowners. They are mad as hell about
:::::p.roposals to increase their 1994 property
. ;.",..taxes 17.5 percent on an average home'
~>..and up to 25 to 30 percent. .
~~:;;, If taxpayers are telling local elected .
~::;"'bfficials they won't stand for those kinds
: :::gf increases, what do you think they
,''lWwouldsay to someone who proposed 100
:'::percent tax increases? '.'
':~':,;,: But that is precisely what the elites
: ~",,;'want.>, ; .
;=~ A whole bunch of studies - by former
::...,81. Paul Mayor George Latimer's state
."U'tax study commission, the Citizens
. Tl,J"eague, the Minnesota Taxpayers Associ-
. ~; .,,~tion, the legislative auditor and the
> :state Revenue Department, among others .
'..~::,:: have found that property taxes on
.j" Qusinesses and apartments in Minnesota
.' are disproportionately high, while owners
..-.{)f homes valued at $72,000 or less are
-v,,-.._ .
, ge~.mg too g~od, a deal. .
.
.
CITY OF ELK RIVER TAX RATE INFORMATION
Finance Dept.
2:47 PM 11/17/93
.
.
.
1994 TRUTH IN TAXATION HEARING
Supplemental Information
Answers to questions posed in UNDERSTANDING YOUR PROPERTY TAXES
1993 printed by the Minnesota Taxpayers Association.
1. What is the dollar amount of proposed total spending for
1994?
$3,394,750 for the General Fund.
2. How does that compare to last year?
An increase of $388,350 or 12.92%.
3. How does this compare to the rate of inflation?
It is higher.
4 .
What are the major spending categories?
Police - 38.01% of total and Streets - 12.08% of total.
5. What are the major revenue sources?
Property Tax 45.37% of total and Intergovernmental
Revenues - 27.25% of total.
6. How much spending is mandated by the State?
Some personal service costs are mandated as well as the
paYment of State sales tax.
.
TRUTH IN TAXATION HEARING
PROPOSED 1994 GENERAL FUND BUDGET
COMPENSATION AS A PERCENT OF THE GENERAL FUND BUDGET
1994 Proposed 66.98%
1993 Adopted 66.64%
1992 Actual 70.08%
BUDGETED GENERAL FI:JND EXPENDITURES FOR CONSULTANTS
1994 Proposed $63,000
1993 Adopted $61,000
1992 Actual $61,746
(Consultants include engineering and legal services)
EMPLOYEES BY CLASSIFICATION
1994 1993 1992
Department Fulltime Parttime Fulltime Parttime Fulltime Parttime
City Council 0 5 0 5 0 5
Economic Development 1 0 1 0 1 . 0
Administration & Finance 6 1 6 1 4 2
Election Judges 0 32 0 0 0 40
Building & Zoning 4 1 4 1 6 0
. Planning 2 0 2 0 0 0
Senior Citizen 1 0 1 0 1 0
Fire 1 35 1 35 1 35
Streets & Parks 9 2 8 2 8 2
Police 23 0 22 1 19 1
Police Reserve 0 20 0 20 0 20
Recreation 0 * 0 * 0 *
Total General Fund 47 96 45 65 40 105
Total Other Funds** 8 12 8 12 8 12
TOTAL ALL FUNDS 55 108 53 77 48 117
*Number of employees in this position varies greatly depending on program response.
**Includes WWTS, Uquor and Economic Development Authority Commissioners.
CHANGE IN TAX RATE DUE TO INCREASE IN 1994 LEVY
Tax Rates 1994 1993
CITY *
Urban 22.339 20.560
Rural 20.162 13.122
TOTAL
Urban 108.004 ** 103.025
Rural 105.827 * * 95.587
. **Estimated rates which do not include the excess school levy.
.
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RESOLUTION 93 -
RESOLUTION FOR THE CITY OF ELK RIVER
A RESOLUTION AUTHORIZING THE FINAL TAX LEVY
FOR CALENDAR YEAR 1994
WHEREAS, the Elk River City Council has reviewed the City's anticipated
expenditures for all funds in 1994; and,
WHEREAS, the Elk River City Council has considered projected revenues for
all funds in 1994; and,
WHEREAS, revenues from sources other than property taxes are insufficient to
meet anticipated expenditures of all funds.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Elk River
that the final General Fund Budget in the amount of $3,394,750
is hereby adopted.
BE IT FURTHER RESOLVED by the Elk River City Council of the City of Elk River
that the following amounts be levied as property taxes payable in 1994.
.
General Fund
Library
Dam Loan
1977 G.O. Refunding
1989 Fire Equipment
1990 Certificate of Indebtedness
1991 Certificate of Indebtedness
1992 Certificate of Indebtedness
1993 Certificate ofIndebtedness
1994 Certificate ofIndebtedness
City Special Assessments
TOTAL
Gross
~
$2,069,582
41,700
32,572
30,800
67,143
17,000
25,266
24,550
34,884
28,000
31,300
$2,402,797
HACA
Reduction
$529,194
10,663
8,329
7,876
17,169
4,347
6,461
6,277
8,920
7,160
8,003
$614,399
Net
~
$1,540,388
31,037
24,243
23,297
49,974
12,653
18,805
18,273
25,964
20,840
23,297
$1,788,398
Passed and adopted by the City Council of the City of Elk River this 15th day of
December, 1993.
ATTEST:
.
Sandra Thackeray, City Clerk
Henry A. Duitsman, Mayor
.
.
.
MEETING OF THE ELK RIVER CITY COUNCIL
HELD AT THE ELK RIVER CITY HALL
WEDNESDAY, SEPTEMBER 8, 1993
Members Present:
Mayor Duitsman, Councilmembers Dietz, Farber, and
Holmgren.
Members Absent:
Councilmember Scheel
Staff Present:
Pat Klaers, City Administrator; Lori Johnson,
Finance Director; Tom Zerwas, Police Chief
1. Call Meeting To Order
Pursuant to due call and notice thereof, the meeting of the Elk River
City Council was called to order at 6 p.m. by Mayor Duitsman.
Prior to beginning the budget work session, Mayor Duitsman updated the
City Council on the Fire Relief Association meeting that he attended
when retirement plan changes were reviewed. Mayor Duitsman indicated
that a task force is being formed to review the retirement compensation
plan and he asked that he and Finance Director, Lori Johnson, be
appointed to this task force.
COUNCILMEMBER HOLMGREN MOVED
JOHNSON, FINANCE DIRECTOR,
FORCE. COUNCILMEMBER FARBER
4-0.
TO APPOINT MAYOR HANK DUITSMAN AND LORI
TO THE FIRE RELIEF COMPENSATION PLAN TASK
SECONDED THE MOTION. THE MOTION CARRIED
2. Budget Work Session
The City Administrator noted that this was a continuation of the first
budget work session held August 30, 1993. This 8/30 budget work
session concluded with a brief discussion on the proposed General Fund
Revenues.
1994 Revenues
The City
planned
proposed
that the projected 1994 revenues
or 12.17%, to a total of $3,372,300.
short of the requested expenditures.
are
The
Administrator stated
to increase $365,900,
revenues are $145,800
This $145,800 budget gap exists even with the General Fund Tax Revenues
increasing $216,750, or 16.38%. This increase is based on a gross tax
increase of $185,000 plus additional shifting of funds from the tax
levy and a change in how the State distributes the equalization aid and
homestead and agricultural credit aid (HACA). Taxes represent about
45% of the total General Fund revenues.
The City Administrator indicated that
(LGA), and HACA represent approximately
local
the
government aid
total proposed
taxes,
68.5% of
Elk River city Council Meeting
September 8, 1993
Page 2
revenues. This compares to 68.3% in 1993. When levy limits were in
place in previous years, these three revenue catagories were controlled
by the State. This left only 32% of the City's General Fund monies
under City Council control. With levy limits being removed, the
situation has changed slightly but not dramatically as the City Council
must still keep any tax increase at a reasonable level. The City
Council noted that it is impossible to determine what affect the
increase in tax revenue will have on the local tax rates as the City
does not have the final figures on the growth in the City's net tax
capacity.
.
The City Administrator highlighted some of the other major changes in
the general fund revenues. These highlights include the following:
An increase in LGA due to the shifting of equalization aid
from HACA.
A decrease in the HACA revenues due to the shifting of the
equalization aid from HACA to LGA.
An increase in the police relief and gravel tax revenues.
A decrease in the landfill surcharge revenues.
An increase in the administrative project fees due to more
construction projects.
.
An increase in plan check fees due to more building activity.
An increase in the D.A.R.E. contribution due to the new
program.
A decrease in the NSP and landfill contribution.
An increase in the recreation fees, which is off-set by an
expenditure in the recreation area.
An increase in the building permit fees and in the plumbing
and heating permit fees.
A new fee for apartment licenses.
A decrease in the interest revenue.
A reserve transfer for elections.
An increase in the street reserve transfer for the overlay
program.
A decrease in the equipment reserve transfers, garbage
transfers due to the utilities taking over this program, and
the EDA transfer.
.
. ~
.
.
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Elk River city Council Meeting
september 8, 1993
Page 3
Overall, the revenues are projected to change by catagories in the
following amounts:
General property taxes: up $216,750 (16%)
Governmental revenues: up $51,200 (5.8%)
Charges for services: up $100,900 (35.9%)
Fines and forfeits: down $5,000 (-5%)
Licenses and permits: up $27,550 (20%)
Other revenues: down 10,000 (-9%)
Transfers: down $15,500 (-8%)
Budget Issues
This City Council and staff reviewed some of the budget issues
associated with the proposed 1994 budget. These issues include an
increase in taxes, wages for employees, personnel additions, capital
outlay expenditures, the equipment certificate policy, a storm sewer
city-wide fee, assessments for seal coating, and changes in the
assessment manual for street projects.
It was noted that a 3% across the board increase in wages is included
in the budget, however, this money can be distributed in any manner
deemed appropriate by the City Council. It is stated that the City is
currently in compliance with the State Comparable Worth law. The
Council decided to deal with the wage plan at a later date.
Discussion took place regarding the tax revenues in the projected
budget and its affect on the local tax rate. Concern was expressed
regarding the growth in the City tax base, and how this growth is
off-set by a decrease in the taxes generated by the power plants. It
was noted that in 1993, the City's net tax capacity decreased and it is
uncertain as to whether or not any growth will be realized in 1994. If
there is no change in the net tax capacity in the City, then the budget
includes tax revenues that will result in an almost 11% increase in the
urban tax rate. On the other hand, if the City net tax capacity
increases by 5%, the budget projection shows tax revenues resulting in
a 5.6% increase in the urban tax rate.
Extensive discussion took place regarding the increase in the rural tax
rate as the City has made an adjustment in the urban and rural taxing
ratio. This adjustment was required due to a major decrease in the
1993 rural tax rate from 17% to 13%. With no change in the amount of
taxes generated, this adjustment made by the City Council will result
in a tax rate change in the rural district from 13 up to 18. With the
increased taxes projected in the draft budget, this would place the
1994 rural rate in the 19.6 to 20.6 range. The Council discussed
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Elk River City Council Meeting
september 8, 1993
Page 4
strategies in presenting this information to the public prior to the
Truth in Taxation Public Hearings.
.
The Council discussed the proposed personnel additions and which
positions were most necessary in 1994. Additionally, the Council also
discussed its strong desire to move away from a dependance on equipment
certificates for the purchase of new equipment.
The Budget Gap
In review of the budget gap, the City Council examined various options
including:
Delaying some expenditures until 1995.
Financing expenditures now.
Using more City reserves.
Raising taxes more than projected.
Obtaining an increase in other contributions.
Limiting wage increases.
Reducing equipment certificate purchases.
.
Raising revenues
Cutting expenditures.
In closing the $145,800 budget gap, the City Council made the following
decisions:
Cut $30,000 from the Fire Department reserve allocation.
Cut $18,500 from the Fire Department
expenditure for the 1981 equipment van.
capital
outlay
Cut $4,800 from the Planning and the Building and zoning
Departments for the aerial photos.
Adding $21,100
help finance
program.
from the NSP and landfill revenue sources to
police activity related to a truck inspection
Cutting $30,000 in expenses
Department related to the
also cutting 6,000 in revenue
(apartment licenses).
in the Building and Zoning
housing inspection program, but
associated with this program
Cutting $13,100 from the Police capital outlay category by
not purchasing the VCR camera and authorizing $8,100 worth of
expenditures at this time.
.
, .'
.
.
.
Elk River City Council Meeting
September 8, 1993
Page 5
Cutting $11,250 from the Planning Department for the intern.
The Council noted that this item may be financed from the
Council contingency fund, if necessary, in 1994.
Cutting $2,500 from the Senior Citizen capital outlay budget
for the computer. This item will be financed now with a
contribution from the Senior Citizen organization.
Cutting $10,000 in personnel costs for Steve Rohlf and Gary
Schmitz for their work associated with environmental
problems. These expenses will be transferred to the landfill
special revenue budget.
Reducing recreation expenses by $3,100.
Directing staff to raise revenues by $7,350.
The above adjustments produce a balanced budget in the amount of
$3,394,750. This is 12.9% increase over the adopted 1993 budget. It
was noted that not all of the budget increases are related to new
expenditures and some of the increases are simply a more accurate
reflection of activities that are taking place and a more accurate
documentation of revenues and expenditures.
COUNCILMEMBER
AERIAL PHOTOS
THIS TIME,
COUNCILMEMBER
FARBER MOVED TO HAVE THE CITY PURSUE THE PURCHASE OF THE
FOR THE PLANNING AND BUILDING AND ZONING DEPARTMENTS AT
USING EQUIPMENT RESERVES TO FINANCE THIS PURCHASE.
DIETZ SECONDED THE MOTION. THE MOTION CARRIED 4-0.
COUNCILMEMBER DIETZ MOVED TO AUTHORIZE THE POLICE DEPARTMENT TO
PURCHASE $8,100 WORTH OF CAPITAL OUTLAY ITEMS AS LISTED IN THE PROPOSED
BUDGET AT THIS TIME, USING REVENUES GENERATED BY THE SELLING OF POLICE
VEHICLES IN 1993. COUNCILMEMBER HOLMGREN SECONDED THE MOTION. THE
MOTION CARRIED 4-0.
City Council Action Items
Various dates for the Truth in Taxation public hearings in December
were reviewed with the City Council.
COUNCILMEMBER FARBER MOVED TO CALL A TRUTH IN TAXATION PUBLIC HEARING
FOR THE 1994 PROPOSED TAX LEVY AND BUDGET FOR WEDNESDAY, DECEMBER 8,
1993, AT 7:00 P.M. AT THE ELK RIVER CITY HALL, AND FOR THE SECOND TRUTH
IN TAXATION PUBLIC HEARING ON THE PROPOSED 1994 TAX LEVY AND BUDGET FOR
MONDAY, DECEMBER 13, 1993, IMMEDIATELY FOLLOWING THE ECONOMIC
DEVELOPMENT AUTHORITY MEETING IN THE ELK RIVER CITY HALL.
COUNCILMEMBER HOLMGREN SECONDED THE MOTION. THE MOTION CARRIED 4-0.
The Finance Director reviewed the proposed debt levy changes for 1994
with the City Council.
COUNCILMEMBER HOLMGREN MOVED TO REDUCE THE 1990 EQUIPMENT CERTIFICATE
DEBT LEVY BY $5,050. COUNCILMEMBER DIETZ SECONDED THE MOTION. THE
MOTION CARRIED 4-0.
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Elk River City Council Meeting
September 8, 1993
Page 6
COUNCILMEMBER FARBER MOVED TO REDUCE THE 1993 EQUIPMENT CERTIFICATE
DEBT LEVY BY $8,384. COUNCILMEMBER DIETZ SECONDED THE MOTION. THE
MOTION CARRIED 4-0.
.
COUNCILMEMBER FARBER MOVED TO REDUCE THE 1986 IMPROVEMENT BOND BY THE
AMOUNT OF $16,159. COUNCILMEMBER DIETZ SECONDED THE MOTION. THE
MOTION CARRIED 4-0.
The Finance Director reviewed the three tax levy resolutions that need
to be approved by the City Council.
COUNCILMEMBER HOLMGREN MOVED TO ADOPT RESOLUTION 93-45, A RESOLUTION
FOR THE CITY OF ELK RIVER APPROVING THE HOUSING AND REDEVELOPMENT
AUTHORITY 1994 TAX LEVY. COUNCILMEMBER DIETZ SECONDED THE MOTION. THE
MOTION CARRIED 4-0.
COUNCILMEMBER DIETZ MOVED TO ADOPT RESOLUTION 93-46, A RESOLUTION FOR
THE CITY OF ELK RIVER APPROVING THE 1994 TAX LEVY FOR ECONOMIC
DEVELOPMENT PURPOSES FOR THE ELK RIVER ECONOMIC DEVELOPMENT AUTHORITY.
COUNCILMEMBER FARBER SECONDED THE MOTION. THE MOTION CARRIED 4-0.
COUNCILMEMBER FARBER MOVED TO ADOPT
AUTHORIZING THE PROPOSED TAX LEVY
COUNCILMEMBER DIETZ SECONDED THE MOTION.
RESOLUTION 93-47, A RESOLUTION
FOR CALENDAR YEAR 1994.
THE MOTION CARRIED 4-0.
3.
Adjournment
.
There being no further business, COUNCILMEMBER HOLMGREN MOVED TO
ADJOURN THE 9/8/93 CITY COUNCIL BUDGET WORK SESSION MEETING.
COUNCILMEMBER DIETZ SECONDED THE MOTION. THE MOTION CARRIED 4-0.
The meeting of the Elk River City Council adjourned at 9:00 p.m.
Respectfully submitted,
7:J? a4~
Patrick Klaers
City Administrator
PK:cms
.