03.01 City Council Minutes - Laserfiche WebLink

Home Browse Search

City Council Minutes April 4,2017 Page 6 of 8 • Capital improvement projects from the City's Capital Improvement Plan. 10.1.B.2018 Preliminary Budget Discussion — Council Directive Nancy Malecha informed the Council the 2018 budget season is looming and the process will begin in May. She questioned if the Council would like to provide direction before departments begin compiling these budgets. Ms. Malecha noted that last year the Council provided good direction and it made the budget process more efficient for Staff. Council Member Loukota suggested the Council directive be no more than a 3% increase in the tax levy. Council Member Pederson suggested the Council consider giving a directive based on the City's tax rate rather than the tax levy.'By-doing so, this would generate more revenue and flexibility in the City budgets. Mayor Adams concurred. The consensus of the Council agreed to direct Staff to use a 1% tax rate increase and no increase in operating costs, which does not include capital outlay expenditures and wages and benefits. 10.2. Gas Franchise Ordinance Nancy Malecha explained the City currently has a gas franchise ordinance with Northern States Power/Xcel Energy that expires in the spring of 2019. The City has been contacted by Xcel Energy to begin the renewal ordinance process. Ms. Malecha questioned if the Council would like to explore the possibility of setting a franchise fee in the renewal ordinance. The City currently has 765 residential and 166 commercial customers with Xcel Energy. A $1 per month flat fee could generate approximately $11,000 per year for the City. The consensus of the Council agreed to include a $1-$2 per month flat fee. 10.3. Utility Rate Study Proposals Nancy Malecha noted the following four proposals were received for the update to the City's utility rate study. • Abdo, Eick & Meyers - $6,250 with NJPA discount • CliftonLarsonAllen - $5,700-$11,800