08-20-2019 Special City Council Meeting Minutes

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Special City Council Minutes August 20, 2019 Page2of5 ----------------------------- 3.4. Lew Budqets Nancy Malecha informed the Council that the tax levy fund budgets project a preliminary tax levy of$1,833,830 which is an increase of$134,645 or 7.92% from 2019 and an estimated tax rate decrease of 0.04%. Ms. Malecha explained our levy can go up and our tax rate decrease since we are anticipating an 8-9% market value increase. Nancy Malecha noted the budget line item increases over $2,500 and stated the purpose of the meeting was to thoroughly review the budget and make changes before the preliminary levy is presented at the September 3�d Council meeting. She also reminded the Council the deadline for setting the preliminary levy will be September 30th at which time it can be decreased but not increased before setting the final levy in December. Nancy Malecha reviewed the preliminary budget in detail as was requested by the Council and discussions took place on various budget items. Ms. Malecha asked the Council what they would like presented at the September 3, 2019 meeting. The City Council would like a summary of employee comp time, 2019 and 2020 wage and benefit changes, and a quantified use report for a new loader for roads and streets. She said we will remove the SCORE funding, look at decreasing the electricity for Street Lighting and Signals and Signs, and update the changes to the health insurance. Discussion ensued about the Street Lighting electricity, health insurance costs, wages, and about the tax rate remaining the same even though the tax rate is up. 3.5. Tax Rate Calculation Formula Nancy Malecha presented the tool on how the City's tax rate is determined. She explained that State, County and City information is involved in the tax rate calculation. Ms. Malecha explained how the attached cycle graphic calculation formula is used in determining the City's tax rate. Council Member Pederson asked when we will know the actual tax rate and Ms. Malecha said we should receive the rate from the County in October or November. 4. Capital Improvement Plan Jason Murray from David Drown Associates presented the attached financial analysis for the City's capital improvement plan. Mr. Murray added $250,000 for North Sluetter Road as place holder. Mr. Murray talked about the sources of funds for the projects; tax levies, water/sewer funds, grants, the 402 fund and the potential use of assessments. He stated the goal is to keep the debt per capita low to moderate and the City is doing that but it is something to keep an eye on. Mr. Murray talked about the purpose of the 402 Fund being for reconstruction projects and there could be possible borrowing for the projects on the financial analysis. He discussed the upward pressure on tax levy with the projects but if we did add assessments it would take some of the pressure off and manage the tax levy. Discussions ensued about tax assessments and using the financial analysis to look at costs for each project.