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HomeMy WebLinkAbout2009-07-08 CC WS - Approved City Council 2009-07-08- 7:20 p.m. Minutes of Work Session Present were Mayor Capra, Council members Linda Broussard-Vickers, and Ben Fehrenbacher. Also present was Finance Director, Mike Jeziorski. Absent was Council member Tom Lee, Jeff Paar. Administrator Larson reviewed the budget for 2009 indicating that the budget is tracking pretty well and expenses should be about $115,000 below the adopted budget. Additional savings are likely in the administration area, but it is too early to say for sure. Revenue shortfalls of about $146,000 are expected due to building permit fees declining and loss of Market Value Homestead Credit Aid. A negative issue is that capital expense items for trail project engineering and the final payment for 2085 Cedar Street may cause a deficit of about $250,000. Larson reviewed equipment needs related to the Cable Fund and will put those items which total around $3000, on the next agenda. Finance Director Jeziorski reported on the tax collections for 2009, noting that the rate of collection is not significantly different than 2008. After the first half settlement, collections were about 49% of levy, whereas 2008, first half settlement was at 50%. Administrator Larson requested recognition of the work above pay grade, done by Account Clerk, Kris Sweeney during the vacancy of finance director. The budget cannot afford any monetary compensation, but Larson suggested that recognition be given through additional PTO time. It was suggested that 8 hours be granted per each month of the vacancy. This will be placed on the next agenda for action. Larson reviewed the draft budget for 2010. The budget as presented shows revenue losses due to the unallotment of Homestead Credit Aid of $69,000 and reductions in permit fee revenue of around $75,000. It includes debt levy increases for the 2009 Street Project of $125,000 and increases for seal coating in the amount of $173,000. Remaining areas of the budget are remaining flat. The budget as presented has a deficit of $236,719, so substantial cuts will be necessary. When those cuts are made, the levy will still have an increase of around 10%, primarily due to the debt levy increase for the 2009 Street Improvement. To balance the budget, a number of things were discussed, including: No cost of living adjustments for 2010, deferring capital expenses, cutting discretionary spending for programs (parks, Fete des lacs, etc.), joint powers efforts with neighboring cities, negotiating with suppliers, reducing engineering and legal fees, reducing or deferring loan payments for the Hidden Spring Park. Another budget work session will be held after the first meeting in August. Staff will explore some of these options and report back. The meeting was adjourned at approximately 8:30 p.m. Dallas Larson, Administrator