CCP 09-14-1987 - Laserfiche WebLink

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~ It was moved by McNiesh, seconded by Steele, ~hat Committee recommend to . Council that insurance requirements be raised to $300,000 aggregate, $100,000 property damage, subject to Mr. Hite's review. Motion carried unanimously. Preview of 1988 Bud~et Charlotte McNiesh, employed as a Consultant in preparation of the 1988 budget, reviewed the transmittal letter with the committee. She noted that the State levy limit allows for 3% above previous year's-levy, and also removed the things that could previously be "outside the levy limit". The total dollars that Arden Hills can levy in 1988 is $1,125,353, $77,000 more than last year's levy. Budget requests total $1,204,000, so at least $77,000 in cuts will need to be made. The proposed budget includes funds for paying remaining costs of Hamline Avenue; does not include any funds to institute the Pavement Management Plan ($60,000 recommended) or the 509 Surface Water Management Plan (mandatory) at $25 to $35,000. Expenditures in the 1987 budget are 5-1/2% below budgeted, primarily because funds were budgeted for the Fourth Fire Station and not expended. It is planned to transfer $116,000 to the Municipal Land and Buildings Fund. The 1987-88 Fire Contract has not been settled; this amount is uncertain. Interest income for 1988 is budgeted at 6%. Levy accounts for 64% of Arden Hills' income; balance comes from interest income, and miscellaneous fees. . The Water Utility is budgeted to re-pay the PIR fund $70,000 per year for water tower costs. McNiesh's original financing plan for the water tower anticipated having to budget $35,000 per year to repay the PIR; this will not be necessary since costs are lower than anticipated; income standby charges is sufficient to cover paying for water tower. Water Utility should have a cash balance of $164,000 at end of the year. The PIR fund is expected to go to $1,169,000 by the beginning of 1988, and $1,865,000 by the end of 1988. The additional levy allowed by the State will result in a 1% mill rate increase for Arden Hills. Future Meetin~ Schedule Completed copies of the proposed 1988 budget were delivered to the Finance Committee on Tuesday, September 1. The Finance Committee will meet Thursday. September 10, 1987, 7:30 p.m. for a complete review of the budget. They will tentatively meet the next Thursday, 7:00 p.m. with Department Heads and Council for final review of the budget. Chair Erickson asked if this second meeting could be moved to Wednesday, September 16, since he has a conflict on the 17th; This can be decided at the meeting of the 10th. Adiournment The meeting was adjourned at 10:15 p.m. .