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<br />City Council Study Session - 05/17/04 <br />Minutes - Page 13 <br /> <br />reconvened the meeting at 8:09 p.m. <br /> <br />8. <br /> <br />Initial Discussion of 2005 City Budget <br />Finance Director Chris Miller provided an overview of the <br />comprehensive process and time span involved in development <br />of the City's annual budget. Mr. Miller identified the process to- <br />date that included the S.W.O.T. (Strengths, Weaknesses, <br />Opportunities, and Threat) analysis reviews and discussed on <br />department-wide levels at the joint meeting with Roseville <br />citizen Commission Chairs and Department Heads (Phase I); the <br />two Town Hall meetings held with citizens and written comment <br />solicited in order for them to provide input on their priorities <br />(Phase II) and Phase III of the project now in the City Council <br />determining their goals and setting priorities for the community, <br />to be reflected in the 2005 Budget. <br /> <br />Mr. Miller noted staff s need for general direction tonight from <br />the City Council as to how the 2005 budget should be structured. <br />Mr. Miller reviewed the staff report and attachments included in <br />the staff report dated May 17, 2004 and identified as "2005 <br />Budget Goals," and provided comparisons of 2003 and 2004 <br />actual levies, percentage increases/decreases; impacts of the <br />voter-approved building construction, additional building <br />operating costs and debt service; ongoing impacts of a "zero <br />percent increase" budget over the last two years on programs, <br />services, and accommodations made through spending cuts and <br />shifting priorities to address continuing inflation costs. Mr. <br />Miller specifically addressed the impacts of the frozen tax levy <br />on tax-supported programs and services; general inflation <br />percentages and their affect on the operating budget; and the <br />short-term "fix" by using reserves to address the reduction of <br />state aids. Mr. Miller cautioned that these issues had created a <br />structural financing gap that needed resolution by the City <br />Council. <br /> <br />Discussion items included projected inflation rates and trends for <br />2005; Fire Relief Association projected unfunded liability based <br />on the most recently completed actuarial; health care industry <br />premiums projected at double-digit increases and incremental <br />implementation of health savings accounts; other economic <br />factors and considerations impacting personnel costs; possible <br /> <br />Initial Discussion of <br />2005 City Budget <br />