12-14-09-R - Laserfiche WebLink

Home Browse Search

ARDEN HILLS CITY COUNCIL—December 14, 2009 20 7C. Approve the 2010 Capital Improvement Plan; Motion to Adopt Resolution 2009-040 Adopting the Proposed 2010 Budget; Motion to Adopt Resolution 2009- 041 Setting the Final Levy for Taxes Payable in 2010 (continued) Finance Director Iverson stated that the City is typically $60,000-$100,000 under budget but at this time she does not have those figures. Councilmember Holden asked if the 2009 budget contained any contingencies. Finance Director Iverson stated the 2009 budget contained a contingency of about $6,000. She clarified that when the budget was put together the departments kept their operating budgets flat except for petroleum type purchases and contracted services where the City could not control the increase and the benefits. Councilmember McClung stated the City has been consistently under budget but they are looking to increase the levy. He stated that the City should do a better job to match their funds with expenditures in order to keep the increases to the residents to a minimum. Finance Director Iverson cautioned the Council that they did unallot in 2008 the second half of the Market Value Homestead Credit and they did unallot all the Market Value Homestead Credit for 2009 and these items were not budgeted for. The City will be short this money and will not have as much reserve as they would normally and this will affect the fund balance. Mayor Harpstead stated the fund balance is a function by which the City gets their transfer payments. The City only receives two checks per year of property tax from the County and they need to be sure they can operate for half a year on the fund balance before they get another payment. Councilmember McClung stated the Truth-In-Taxation hearing opens a lot of eyes when you look at where a large portion of the City's general fund budget goes, to public safety. Public safety is at a steep increase every year. A majority of the increase in the City's levy this year is going to contractual increases in police and fire protection. He brought in an article from the Pioneer Press dated December 12, 2009 which pointed out what some cities are paying per capita for police protection. This article provided figures for Shoreview where they are paying less per capita for their police/fire protection than Arden Hills is. He stated that he was not sure that Arden Hills is getting what they are paying for in light of all the increases they have had. He would not be able to support this budget because there are too many questions regarding these contracts at this time.