CC_Minutes_2009_0914 - Laserfiche WebLink

Home

Regular City Council Meeting Monday, September 14, 2009 Page 10 Councilmember Johnson thanked for staff for their realistic recommendation at 14%; seeking clarification on the rationale for the 2009 levy at 3.9% and this re- quested levy amount. Mr. Miller reviewed various components of levy limits: base limits and previous year levy limits and inflationary amounts, based on price deflators and unused levies from previous years; along with exemptions beyond levy limits (i.e., new debt services; police and fire officer wages). Councilmember Ihlan expressed her concern in being asked to adopt a prelimi- nary budget, even in the aggregate, when there was no targeted line items to cor- relate with the requested levy. Councilmember Ihlan questioned how staff had identified these recommendations without department-specific spreadsheets or fi- nancial reports. Mr. Miller noted the different process this year in arriving at the budget and levy; and advised that there was no recommended line item budget, pending City Council direction on preferred service levels. Mr. Miller advised that, at an inter- nal staff level, departments had identified on a preliminary basis 2010 needs, which would be predicated on City Council-established services levels; with staff projecting maintenance of services and programs at previous levels and calculat- ing aceiling as staff identified in the aggregate report. Mr. Miller further advised that this is the first procedural step in the process, with an understanding that this was not the final budget. Mr. Miller clarified that the property tax levy was the only applicable item that could not be increased, only reduced at final adoption; with the budget able to be amended at any time at City Council discretion. City Manager Malinen advised that, as the City Council proceeded through the BFO process, other revenue concepts may become evident, allowing the City Council to fund over and above their preliminary budget, but that this wouldn't be known until the BFO process had been completed. Councilmember Ihlan requested an update from Mr. Miller on current reserve lev- els. Mr. Miller advised that, depending on designated funds for a specific purpose, or those available for any use, the City's General and Park & Recreation Program Funds were funded at approximately 25-30%, or a total of $4 million in those tax- supported funds; but that the City Council's policy was for funding them at 50% of their reserve level. Councilmember Pust noted the $50,000 line item for elections, with the City Council having previously (2009 budget) removed this annual amount.