CC_Minutes_2014_0512 - Laserfiche WebLink

Home

Regular City Council Meeting Monday,May 12, 2014 Page 9 the RCA. Mr. Miller advised that, with increases in the market value of median valued homes estimated in 2014 at 11%, this minimum impact would impact the average single-family home by an increase of$6.40 per month. Regarding information on Non-Tax-Supported Programs (Section2, page 4 of the RCA, lines 113 — 118), Mr. Miller advised that at this time information could not be compiled to provide an accurate and meaningful picture until later in the budg- et process. Attachments A and B to the RCA provided a "Summary of City Cash Reserves," with Attachment C providing"Fund Balance Levels for Key Capital Replacement Funds." At the request of Mayor Roe, Mr. Miller highlighted other legislative highlights that may impact the 2015 Budget (Page 3 of the RCA), most significantly the po- tential loss by Roseville of its entire annual Local Government Aid (LGA) appro- priation of$225,000, based on the current formula. Mr. Miller noted that the City was ironically a victim of its own success under that formula, with recent popula- tion gains from recent developments and expansion and rebounding of its tax base, and the State's perception that the City has the means available to financial- ly support itself without state assistance through LGA funding formulas. Mr. Mil- ler noted that would impact the sustainability of the City's CIP long-term, and would need further discussion during the budget process. Councilmember Willmus thanked Mr. Miller for his presentation; and recognizing that members of the Finance Commission were present in tonight's audience, asked that they look at the City's reserve position from year to year, and their rec- ommendations for a sufficient carryover from one budget cycle to the next as part of the overall budget process, particularly unrestricted, but also restricted reserve funds, and whether the City should or could use some of those funds more aggres- sively than in the past. Councilmember Willmus used the License Center as an example, and whether a mechanism needed to be put in place to determine how those reserves are funded and how dollars utilized historically and in the future. Councilmember McGehee noted that the Reserve Fund discussion continued to come up; but opined that the License Center Fund in particular had been intended to address future construction of or remodel of an existing facility in the City for use as a City-owned License Center versus the current lease arrangement. Coun- cilmember McGehee noted the possibility of retrofitting the Fairview Fire Station for that purpose. Councilmember McGehee further noted her concern with the ongoing funding of the CIP, and the apparent pattern in reducing that funding that would create the same issue that had to be addressed in the Water and Sewer Funds with their sig- nificant rate increases.