1997-10-20MINUTES-COMMITTEE OF THE WHOLE MEETING-OCTOBER 20, 1997
The meeting was called to order at 7:30 p.m. Members Present: Andrea Ahrens, Mark Hanus,
Liz Jensen and Leah Weycker. Absent and excused: Bob Polston. Also Present: Gino
Businaro, Finance Director and Ed Shukle, City Manager.
The only item on the agenda was the proposed 1998 Budget. Councilmembers asked a variety of
questions concerning the proposed budget. Those questions included the following:
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Capital Outlay-Why the Lift Station Upgrade in the Sewer Fund?
Proposed rate increases in the Sewer Fund and why?
Possible improvements to the Island Park Hall.
Depot Improvements-need to increase fees once the improvements to the interior are
made. Also need to look at damage penalties.
Why more weed whips for the Parks Department?
Legal Budget-Why the decrease in the civil line item?
Recycling Fund-Do we need to keep the recyclotto program going?
Can we add non-corrugated cardboard to the recycling program?
Proposed increase in recycling charge-why? Should we go to $1.75 rather than $2?
Possibly setting aside monies for retaining walls-out of liquor fund, etc.
Proposed cemetery fees-increasing the fees more than what has been proposed.
Fund Balance as a percentage of expenditures-reduce from 40% to 37%.
Proposed levy-what is the appropriate increase?
The discussion focused on the possibility of not levying the proposed 5.5% and reducing the general
fund balance as a percentage of expenditures to 37%. Ed Shukle, City Manager and Gino Businaro,
Finance Director emphasized the need to increase the levy since the levy was 0% in 1997. They
stressed that the proposed levy is 5.5% of the 1996 levy. Explaining that to constituents is really
important in terms of communicating the tax implications. Shukle and Businaro stated that they
understood the Council's goal but did not agree with reducing the fund balance. If you utilize this
approach on a continual basis in the years to come, the fund balance will gradually diminish. We
have worked very hard to fiscally manage the city to the point that there is a "healthy" fund balance.
Let's be conscious of that as we plan for the future. Budgeting is both short term and long term and
we can't lose sight of that as we consider the tax levy. Also important to remember, said Shukle and
Businaro, is the fact that previously, capital outlay was purchased from Fund #30 offsetting some
of the burden that would have been placed on the general fund. The 1998 Budget shifts capital
outlay expenditures to the general fund which puts further demands on that fund for goods and
services.
Staff was directed to present options at the Truth in Taxation Hearing on December 11, 1997
showing what a reduced levy would be reducing the fund balance as a percentage of expenditures
at the 37% level.
There being no further business, the meeting was adjourned at 10:08 p.m.
Committee of the Whole Minutes
October 20, 1997
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City Manager