CCP 12-14-1998 - Laserfiche WebLink

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" ARDEN HILLS CITY COUNCIL - NOVEMBER 30, 1998 DRAFT 2 . explained the City of Arden Hills may have a more extensive park system and programs e compared to the other cities which were used for comparison. Councilmember Malone wondered if the other cities charge the budget differently. He indicated he believed the park budget was approximately $160,000. Mr. Post explained in 1998 the park budget was $312,000. The proposed budget for 1999 is $299,350. Mr. Fritsinger suggested Staff could review the calculations for slide number 7 A from the Taxpayers Association information to determine the sourCe of the numbers and verifY the information was correct. Mr. Post suggested one reason for the high amount of expenditure in the Parks and Recreation category could be due to the fact that all governmental fund expenditures are included. The dollar amount reflects the Recreation Fund #226, as well as park maintenance in the General Fund, Mayor Probst referred to slide #9 and requested confirmation that the revenues from licenses and permits had been dropped for 1999. Mr. Post explained in 1998 the City had budgeted $196,850 for licenses and permits, however, the 1998 license and permit revenue was expected to come in at approximately $314,000 due to higher commercialJindustrial building permits being issued. Mr. Fritsinger confirmed that, for the 1999 budget year, this revenue amount had been reduced slightly from last year. Mayor Probst reiterated the need for additional information explaining how the dollars are shifted from commercial to residential. He referred to slide # 12 and noted these are not issues . which are driving the 3.2% property tax increase. He indicated the question had been raised in the past what these drivers are and suggested, if there are significant issues which are driving the tax increase, it may be worth including this information at the public hearing. Mr. Post stated that one of the purposes for the public hearing was to discuss the 3.2% levy increase being proposed and explain the reasons for this increase. Mr. Post referred to his Staff memo dated November 18, 1998 which provided specific information on the changes being made to the budget. He explained that, at the September 14, 1998 regular City Council meeting, the Council adopted Resolution #98-60, Adopting the Preliminary 1999 Budget. In the ensuing two months several iterDs have come into better focus for both the 1998 estimate, as well as the 1999 draft budget. Mr. Post explained that the purpose of this memorandum was to document these changes and leave an "audit trail" of the budget numbers to be presented at the public hearing. Mr, Post explained, in terms of the total net changes since the September 14,1998 meeting, one of the recommendations was to increase the 1998 estimate revenue by $17,283 and increase the 1999 proposed by $5,293, The 1999 increase was being driven solely by the higher State Fire Relief aid received since budget adoption. Mr, Post stated that the May 15 tax collections were lower than expected. The delinquency rate for collection was higher and it was estimated that this trend would continue for the October 15 e tax collections. For this reason, Property Tax revenue was being reduced by an additional $20,200, Mr. Post noted that this reduction was offset by the higher building permit fees.