2016_0916_FC__Packet - Laserfiche WebLink

Home

Finance Commission Minutes August 10, 2016 – Draft Minutes Page 6 of 8 and inclusion of the Golf Course club house in the Park Improvement Program as outlined. The 226 motion carried unanimously. 227 228 229 Consider Developing Recommendations on the 2017 Tax Levy & Budget 230 231 Chair Schroeder stated the City Manager has recommended a 3.4% increase in the budget and a 232 tax levy increase of 5.5%. She stated the operating budget has gone up 46% over the last 10-233 years. 234 235 Commissioner Bachhuber clarified the average budget increase over the last 10-years was 3.8% 236 per year. 237 238 Vice Chair Rohloff stated Roseville does a good job with their utilities. 239 240 Commissioner Bachhuber stated Roseville’s tax burden is lower than other comparable 241 communities. The budget excluding capital outlay is reasonable and because the tax burden is 242 lower or the same as other comparable cities he would support the proposal as it is laid out. 243 244 Commissioner Konidena stated his home value has increased. 245 246 Vice Chair Rohloff stated the problem with the home value increasing is that people’s salaries 247 may not have increased at the same pace so they are paying more than they were last year for the 248 same house and it is difficult for residents to pay higher taxes. 249 250 Chair Schroeder stated the results from the community survey had been residents feel they are 251 paying too much in taxes. She stated there is $1.2 million in the Licensing Center that could be 252 used to lower the levy and bond for a new License Center when the City is ready to move 253 forward with that project. It is difficult to recommend raising taxes 5.5% when the City has a lot 254 of cash. 255 256 Finance Director Miller explained every taxable parcel in Roseville will pay property taxes based 257 on the property and the improvements to that property on January 1. 258 259 Commissioner Zeller stated he would like to see the operational budget track the rate of inflation 260 for future levies. 261 262 Commissioner Harold stated the use of reserves seemed high and it is the fifth year in a row that 263 the City has used a significant amount of reserves. The budget should not be dependent on the 264 use of reserves. He would recommend decreasing the budget. 265 266 Vice Chair Rohloff stated the City has been using reserve funds because the balance in the 267 reserve is over the maximum amount recommended and the policy recommends using these 268 funds to lower the levy. When the reserves are not available then the levy will need to be 269 increased significantly to cover the shortage. 270