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Regular City Council Meeting Monday, August 17, 2009 Page 14 Mayor Klausing requested that staff prepare preliminary information to proceed with a 2010 feasibility study and 2011 construction for the above-referenced con- struction project; and return to the Council at a later date seeking authorization for such a feasibility study, based on the Chapter 429 process. Mr. Schwartz anticipated that such a request would come before the City Council in the spring of 2010 following staff's research of additional information. Councilmember Pust thanked the neighbors for bringing their request forward, for working together, and working together as problem solvers b. Discussion on the City's 2010 Property Tax Levy Limits Finance Director Chris Miller provided a summary of 2010 property tax levy lim- its, based on recent legislation, and detailed in MN Statutes, Chapter 275.70 and 274.74. Mr. Miller addressed two categories: General Purpose representing unre- stricted levy limits, and Special, or restricted, levy limits. Mr. Miller reviewed each levy and their impacts to the community as it began to prioritize its prelimi- nary 2010 budget and levy. Discussion among Councilmembers and staff included implicit price deflator at (0.83%); one-half the percentage of household growth; one/half percentage of C/I market value; allowable special levies to be used for debt service, increases in pension obligations, wages and benefits for police and fire, loss of 2008 MVHC, and loss of 2009 MVHC; additional legislative changes allowing municipalities a one-time provision to levy back for lost aid in 2008 and 2009; various assump- tions in employee union contract arbitration; and how to determine impacts for median value, single-family property owners and taxpayers. Further discussion included how to provide an adequate level of services based on the budgeting for outcomes process currently being implemented, along with other objective data; various perspectives in determining maximum margins for services and programs; property valuation changes that may provide an opportu- nity beyond that normally provided, if those values were reduced and less impact was felt by the homeowner; service versus impacts; and taking advantage of levy issues before the Council, so no additional negative influences are faced by the City in providing realistic and requested service and program levels. c. Continue Discussions on an Alternative Budgeting Process for 2010 Finance Director Chris Miller provided a summary of the Budgeting for Out- comes (BFO) process as detailed in the Request for Council Action dated August 17, 2009; and in anticipation of the upcoming presentation by Springsted on .the City's estimated 200 distinct functions, only represented by taxpayer supported funds. Mr. Miller noted that the entire BFO process would take several more months to finalize priorities and make final spending decisions.