CCP 12-11-2006 - Laserfiche WebLink

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, ARDEN HILLS CITY COUNCIL - November 20,2006 2. In the Public Safety Capital budget, staff is recommending a need assessment for . Fire Station #1 in 2007. The Lake Johanna Fire Board has also recommended that we conduct an assessment. As Council has previously been informed, the Fire Department is planning for potential reconstruction of Fire Station #1 (currently contemplated in the Fire Capital Plan for 2012.) Staff recommends adding a $5000 budget amount in the Public Safety Capital fund for this purpose. " The proposed budget still incorporates funding for Celebrating Arden Hills. .) . 4. The EDC has presented a Strategic Plan that recommends a number of items for 2007 implementation. The only item that has been incorporated into the budget at this time is S5,OOO in the EDA fund for Business Retention PrognU11 activities. GENERAL FUND AND TAX LEVY DISCUSSION The current proposed budget is based on a 6% increase in the tax levy from S2,523,737 to S2,6 75,161. A percent in the increase of the tax levy is $25,237. The City has hired Ehlers and Associates to prepare a Financial Plan for the City, to assist the City with assessing its current financial status and with making decisions regarding the 2007 budget and tax levy. City staffs primary concem is that operating costs can be covered with a 4% increase in the tax levy, but our fund balances in the capital funds area are decreasing (due to significant capital improvement projects) and the City needs to ensure the viability of those funds for future projects. Our primary sourccs of revenue f()r those funds are assessments and property taxes. . At this time the projected budget includes $159,316 in transfers to the PIR/Capital Fund ($39,829) and the Public Safety Capital Fund ($119,487). It is at the discretion of the City Council to elect to lower the transfer amounts in the following areas: . Establishing a Council Contingency for unanticipated purchases or projects during 2007 or decreased revenues (unspent contingency at the end of the year would add to the General Fund Balance) . Initial funding for a Capital Equipment Replacement Fund . Covering the cost of a City survey ($10,500) . Contribution to General Fund Balance . Funding for possible implementation of all or portions of the EDC Strategic Plan Implementing any of the above options reduces the amount of the transfer to the two capital funds. There arc several options irthe Council is interested in lowering the tax levy: . Decrease the transfer to the PIR/Capital Fund . Decrease the transfer to the Public Safety Capital Fund . Recommend cuts in the proposed budget or capital plan . 5