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HomeMy WebLinkAbout2010-06-09 CC WS - Approved City Council 2009-06-09, 7:45 p.m. Minutes of Work Session Present were Mayor Capra, Council members Linda Broussard-Vickers, Ben Fehrenbacher, Jeff Paar and D Love. Also present were Finance Director, Mike Jeziorski; City Attorney Kurt Glaser and Engineer Mark Statz. Ron Mehl of Beard Group, reviewed a proforma for the redevelopment of Block 8. It was noted that the Livable Communities Grant in the amount of $763,100 must be spent this year or it could be lost. Mr. Mehl indicated that the only means of financing the construction would be through HUD, which has a significant backlog of projects. He believes it would likely take a year to get financing approved. Even so, a funding gap of around $3.5 million exists on this phase. Several alternatives were discussed to reduce the gap, including abating various fees, specially assessing the street improvements, deferring development fees and applying for additional grants. Beard suggested that they could refine their construction estimates and look for opportunities to reduce costs. Staff will determine if the LCDA Grant can be extended and will work with Beard to determine the feasibility of the project, including other grant opportunities. Staff and Beard will report back in one month. Finance Director, Mike Jeziorski reviewed the draft budget for 2011, including the Capital Improvement Plan. He also reviewed budget projections for the following five years showing levies that would result using projected capital improvements, planned debt service levies and assuming a 3% inflation cost to all expense areas of the budget. Dallas Larson discussed major cost elements of the proposed 2011 budget, including a plan to retain the City’s project inspector as a regular employee. No cost of living adjustments for 2011 are included in personnel costs but a small increase is planned for cost of family health insurance, capital expenses include replacing the park tractor and upgrading the skid loader to permit cleaning of residential sidewalks. The General Fund levy is unchanged from 2010, but the Debt Service levy is up $25,000, with a combined levy increase of about 1%. The draft 2011 General Fund budget has a deficit of $68,450, which may be covered by Fund Balance if Council wishes. Another budget work session will be held after the first meeting in July. Staff will prepare to discuss areas where cuts could be made. The meeting was adjourned at approximately 9:10 p.m. Dallas Larson, Administrator