CC_Minutes_2017_0925 - Laserfiche WebLink

Home

Regular City Council Meeting Monday, September 25, 2017 Page 7 Specific to the Option E proposal, Mayor Roe stated that he was not comfortable setting the 2018 not-to-exceed levy and budget tonight under that option without a better understanding by the public and City Council on ramifications. If taking that step for Option E, Mayor Roe opined that the public should be alerted well ahead of time, and stated he'd anticipate considerable comment by the public if that large an increase showed up on proposed property tax notices this fall. Mayor Roe stated that he had several philosophical concerns with Councilmember McGehee's proposal, including transferring utility fees to taxpayers and how to address tax exempt properties, how a customer should be charged for use of city utilities, and other equities to address. Mayor Roe noted that while there may be some benefit to median-priced and/or lower-valued homes in Roseville, there would also be a huge shift for higher-priced properties, leaving him unsure how best to fund the city's utility system overall. With the current system distributing costs to all users in that equitable way, Mayor Roe opined that he was convinced that Option E shifted that burden leaving him uncomfortable in taking that step without more discussion that he had anticipated occurring over the next year. Mayor Roe stated that he was also not comfortable setting the levy as low as out- lined in the City Manager Recommended Levy as this motion would establish; rather supporting Councilmember Etten's suggestion for a 3% total cost impact increase. However, Mayor Roe noted that with that proposed decision, there would be an additional $580,000 additional revenue coming into the city that needed further discussion as it considered application of incremental approaches to solve problems. While typically $200,000 to $250,000 of levy capacity had been added in a single year previously to address CIP funding, Mayor Roe opined that $580,00 amount could provide considerable flexibility and its application could address those fund balances of concern while not using the entire $780,000 in reserves to cover operating funds. Mayor Roe noted that there were several ar- eas in the CIP that needed immediate resolution: Parks & Recreation and Building Replacement items. Therefore, Mayor Roe stated that he would not support the motion as it didn't al- low for that additional discussion and consideration before year-end. Discussion ensued as to an option beyond the current motion (Option A or C or combination thereof); use of anticipated $800,000 in reserves for this current fis- cal year; how best to address serious CIP needs in the short-term; and how to ad- dress continued growth of operating costs. Willmus moved, Laliberte seconded, calling the question. Roll Call Ayes: Willmus, Laliberte, Etten, McGehee and Roe. Nays: None. Roll Call (Attachment A)As Presented