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HomeMy WebLinkAbout02.28.2001• • COUNCIL WORK SESSION February 28, 2001 4:15 p.m. Council Chambers Members present: Mayor Rooff, Anders, Krizek, Jordan, Murphy, Gronen, Getty, Berry. Moved by Jordan, seconded by Gronen that the Agenda, as proposed, be approved. Ayes: Seven. Motion carried. Michelle Weidner, Chief Financial Officer, stated that the levy rate has to be published Friday, March 2, 2001 for the F.Y. 2002 Budget Hearing on March 12, 2001. Ms. Weidner stated that she has been working on the budget for only 31A weeks. Ms. Weidner recommended that the council set the levy at the amount submitted by Department Heads. The levy would need to be set at $19.29, which is a 16.98 percent increase in tax askings. Ms. Weidner stated that this is a substantial increase, and there is still a lot of work to do on the budget. Ms. Weidner stated that the city needs to set the levy at the top end for the publication notice, but the levy can be reduced. Ms. Weidner reported that some of the increase is due to union contractual agreements of a 3.5 percent increase in salary on July 1, 2001, a 13 percent increase in health insurance costs and increase of 15.5 percent for utilities. Ms. Weidner stated that there may need to be cuts in personnel before the budget process is completed. Ms. Weidner reported that the Local Option Sales Tax revenue is the same amount the city collected last year, and there has been a tremendous amount of construction. Ms. Weidner stated that the Sanitation Budget is in good shape, and that expenditures match revenue. Ms. Weidner stated that sewer fees need to be able to cover the city's cost of 45 percent of construction of the new Water Pollution/Flood Control Facilities. Currently, the city can pass parity. Ms. Weidner reported that the Road Use Tax collection is flat. The State projected, and the city based its budget, on an additional $350,000.00 for this year, and we have not seen that increase as of today. Ms. Weidner commented that the city will again use the State's projected Road Use Tax collections for F.Y. 2002. The city will monitor the monthly collections, and if the taxes do not keep pace, we will have to make cuts in projects. Mayor Rooff stated that Ms. Weidner recommended that we break the budget out by funds. The council has agreed to hold two pubic input meetings on the budget. Ms. Weidner suggested that a council work session be held on March 5, 2001 to discuss the F.Y. 2002 Budget. Ms. Weidner reported that with the proposed $19.29 levy a house valued at $100,000.00 would pay an additional $144.00 in taxes. Ms. Weidner stated that this levy will keep manpower intact. Councilperson Getty stated that he would like to see the levy set at the top and have the council work with Ms. Weidner on the budget. With no further business before the council, it was moved by Getty, seconded by Jordan that the meeting be adjourned at 4:30 p.m. Ayes: Seven. Motion carried. Nancy Eckert City Clerk