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HomeMy WebLinkAboutMinutes-03/05/2018 COUNCIL WORK SESSION March 5, 2018 4:40 p.m. Harold E. Getty Council Chambers Members present: Morrissey, Shimp, Klein, Amos, Schmitt, and Juon. Absent: Jacobs Moved by Schmitt seconded by Shimp that the Agenda, as proposed, be approved. Voice vote- Ayes: Six. Motion carried. Objective: Discussion of FYE19 budget. Michelle Weidner, Chief Financial Officer, provided an overview of the FYE2019 budget. She explained that the proposed levy rate is $17.76290. Mayor Hart explained that the proposed budget includes staff recommended cuts of 2.5% and 5% reduction proposals, council proposals, additional cuts staff incorporated, a use of$500,000 of fund balance, and an increase in MidAmerican Energy franchise fees. Mrs. Juon questioned the reduction of the PEG fee with the Mediacom Franchise. Michelle Weidner explained that Mediacom is under a state franchise and that the PEG fee is being eliminated as a result. Mr. Shimp questioned when the last time residential taxes received a decrease. Mayor Hart commented that this is the biggest decrease to residential property taxes in several years. Mrs. Klein questioned if the city is relying on the rollback. Michelle Weidner explained the rollback change noted in the handout reflects the reduction in revenue from the state. Mayor Hart explained that the legislature is still debating whether to continue allowing using the use of backfill funds. Mr. Morrissey questioned what would happen if the backfill is retracted after the budget is adopted. Michelle Weidner explained that property taxes cannot be increased so the city could look at raising fees such as franchise fees, use fund balance, or find additional cuts. Mayor Hart commented that Cedar Falls included backfill revenues in their budget as well as other cities. Mrs. Klein noted that she believes that the city should not factor the backfill into the budget. Mr. Morrissey questioned if a work session will be held prior to the meeting to review options. Kelley Felchle, City Clerk, commented that council should provide both Mayor Hart and Michelle with any additional budget suggestions as soon as possible because the point of Thursday's budget hearing is to adopt the budget. Mr. Morrissey commented that it is difficult to make an informed decision when all of the information isn't given early enough to review. Mrs. Klein questioned where the city would rank with the proposed levy rate. Mr. Morrissey commented that Council Bluffs raised their levy rate to 18.26. Page 2 With no further business before the Council, it was moved by Shimp seconded by Morrissey that the meeting be adjourned at 5:16 p.m. Voice-vote Ayes: Seven. Motion carried. Kelle Felchle City lerk