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HomeMy WebLinkAbout02.23.2006 (2)• COUNCIL WORK SESSION February 23, 2006 8:30 a.m. Council Chambers Members present: Mayor Hurley, Kincaid, Welper, Gunderson, Greenwood, Getty, Cole, Schmitt. Moved by Schmitt, seconded by Kincaid that the Agenda, as proposed, be approved. Ayes: Seven. Motion carried. Mayor Hurley reviewed the FYE2007 published budget. The published budget is $927,000.00 over the legal $8.10 levy. Department Heads were asked to develop budgets based on no new programs and no new people, with a few exceptions. Mayor Hurley reviewed "add on" items which are included in the proposed budget for a total of $487,529.00. Councilperson Greenwood now absent at 8:42 a.m. Mayor Hurley reviewed a chart explaining Total Assessed Values and Total Taxable Values as of January 4, 2006.. The total assessed values is a little over $3 billion, which is a 1.77 percent increase in growth. The real growth shows 2.58 percent increase. Mayor Hurley reviewed his proposed budget adjustments which reduce the published levy by $291,823.00. Mayor Hurley reviewed his proposed FYE07 Additional 8.10 Gap Closure Items which would help reduce the published levy. It includes not backfilling expected retirements in Police (7), Fire(8 plus 5 command staff), a meter repair vacancy, mechanic position and two open positions in Leisure Services. Mayor Hurley reviewed the FYE2007 Residential Revaluations Impact on Taxes Paid. A house valued between $100,000.00 and $150,000.00 would see an increase of 3.9 percent in taxes at the published levy of 19.00284. Michelle Weidner, Chief Financial Officer, explained the FYE2007 Residential Revaluations Impact on Taxes Paid which showed the rate needed for no change. Ms. Weidner stated that the purpose of the revaluation categories that went up was the Black Hawk County Assessor determined those homes were getting a value and not paying their share while the higher homes were paying more than their share. Mayor Hurley noted his philosophy in preparing the budget was to hold onto what we had in terms of personnel and programs. Moving forward and quality of life issues help economic development. Mayor Hurley reported 80 percent of the budget is people, and Public Safety makes up more than 3/4 of the General Fund budget. Mayor Hurley reviewed the FYE2007 General Fund Change in Cost document. The total increase in cost was $2,966,275.00 or 11.37 percent increase over FYE2006. Property taxes required would be $29,058,641 and the maximum levy allowed is $28,132,053, which leaves $926,588.00 that needs to be reduced from the published levy. Mayor Hurley stated the good news is the city has had new real growth, but the roll back figure is set at its lowest level. Councilperson Welper noted that it looks like Public Safety will take the biggest hit and asked what will the call back cost be if we don't have enough people. Mayor Hurley responded the city could close a fire station and the Police Department would need to look at some of their programs such as DARE. Councilperson Welper stated closing a fire station could mean longer response time which could increase insurance premiums. Mayor Hurley responded he isn't sure that would be a factor or if insurance premiums really go up Council Work Session February 23, 2006 Page 2 • 4 Councilperson Gunderson asked if there is Isle of Capri money. Mayor Hurley responded there is about $160,000.00 left with $30,000.00 designated for one-half the cost of consultant Vanderwalle for the Tech Work project. Mayor Hurley noted Community Development is out of emergency repair funds. Mayor Hurley stated there is some discretionary hotel/motel funds and the Police Department has received some of those funds in the past for covering special events. Councilperson Gunderson stated there was excess money put in the Youth Pavilion project for sales tax that we won't have to pay and there should be $40,000.00 that the Center For The Arts received from Isle of Capri funds. Ms. Weidner responded that the contract for the Youth Pavilion has a contingency fund, but that really doesn't change the total cost of the contract. Councilperson Gunderson stated the Youth Pavilion project was given Isle of Capri money that should go back into the pot. Councilperson Schmitt noted the city has restricted funds and asked if any of those funds could be used. Ms. Weidner responded restricted funds cannot be used for the General Fund. Councilperson Welper commented he has an idea for a revenue source and will visit with Mayor Hurley. Councilperson Kincaid noted there are a lot of older homes in the 4th Ward, and he will find it hard to explain the higher priced homes are getting a decrease in taxes while the older homes taxes have increased. Mayor Hurley explained the revaluation is an actual reflection of what is going on in the housing market that shows they have more equity in their homes. Assessors have to evaluate property based on market value, etc. With no further business before the council, it was moved by Cole, seconded by Schmitt that the meeting be adjourned at 8:25 a.m. Ayes: Six. Absent: Greenwood. Motion carried. Nancy Eckert City Clerk