CC 07-25-1994 - Laserfiche WebLink

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, , ,- , I I I I . '. . . . . I . I .e . ARDEN HILLS CITY COUNCn. - JULy 25, 1994 2 Mayor Probst asked what the corresponding expense number is compared to the $1.8 million revenue figure. Post stated that the expense number reviewed at the work session is $2,061,325. Expenditures have since been updated to reflect the elimination of a citizen survey in the Mayor and Council budget ($10,000) and a $2,500 reduction in the category of elections. There was also Council direction to not fund the County Road E right-hand turn lane at $25,000 in 1994, and only fund the required lane sensor changes at approximately $2,600. Post stated that the 1994 net levy increase was 9.94%. The proposed 1995 net levy increase is 4.95%. General fund revenue comes from property taxes and are assumed to be collected with a 5% delinquency. This contrasts with the 1.5% delinquency rate that the City had enjoyed prior to 1993. Information from the League of Minnesota Cities indicates that the 1995 HACA aid from the Local Government Trust Fund may not be able to be funded at 1994 levels. Even though the full amount is certified, it may not all be distnbuted from the State. With the reductions from the fiscal disparities pool in contributions and distnbutions, 1995 fiscal disparities revenue will correspondingly go down. There will be an estimated 12% reduction in 1995 fiscal disparity aid to $109,000. HACA aid is estimated to be approximately $90,000. Other revenues consist of license charges, pennits, fines and forfeits, etc. There will be a reduction in 1995 dog registration revenue because of the number of two-year permits sold in 1994. Another source of revenue will be the sale of equipment items: 1) a one-ton pickup truck and a Toro Groundmaster from the Park and Recreation Department; 2) a half-ton pickup truck from the Public Works Department (on the pickup truck sale, proceeds will be split three ways between the general fund, sewer fund and water fund). Mayor Probst asked if this is the right time to sell the equipment based on its condition, not just because it is on the schedule. Winkel stated that the condition of the truck is such that it should be replaced as part of routine maintenance to avoid any heavy maintenance costs to the City. The heavier one-ton truck replacement is needed as opposed to a half-ton or 3/4-ton in order to plow during the winter. Post stated that another item that will appear in the 1995 budget is state building code surcharges. When the City collects state building code charges, it is collected fee encumber. What is shown in the 1994 budget is the net 4% administrative holdback. However, in 1995, revenues will increase by the amount of collections and expenditures will increase by 96% of the collections. The estimate for state building code surcharges is $8,000. Post noted that there was discussion to fund uncompensated employee absences, which would be approximately $16,000. He recommended consideration of a $50,000 Fire Department capital sinking fund contribution and a $30,000 general fund capital equipment sinking fund.