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Regular City Council Meeting Monday, December 06, 2010 Page 2 Councilmember Pust arrived at approximately 5:43 p.m. and joined the Closed Executive Ses- sion already in progress. Recess Mayor Klausing recessed the Executive Session at approximately 6:07 p.m. and reconvened at approximately 6:11 p.m. in Regular Session. Mayor Klausing provided a brief summary of the Closed Executive Session for the annual re- view of the City Manager, in accordance with his contract and the recently preformed 360 de- gree review through which he was evaluated; with formal City Council action scheduled for the December 13, 2010 regular meeting agenda. Roll Call (Voting and Seating Order for December: Ihlan; Johnson; Pust; Roe; and Klausing). 6:00 p.m. 2011 Budget Hearing Prior to the Public hearing, and at the request of Mayor Klausing, Finance Director Chris Miller provided an overview of the purpose of the hearing, including to present an overview of the City's 2011 spending plan; to establish the need for a property tax levy and increase; to summar- ize the tax impact to property owners; and to allow comments and suggestions from the general public. Mr. Miller reminded the public that tonight's presentation and questions to be enter- tained was only related to the City's portion of their property tax bill, not those of other taxing jurisdictions. Mr. Miller's presentation was provided as part of the Council meeting packet dated December 6, 2010; and included a list of budget impact items; a summary of the proposed 2011 budget; property taxes in perspective; and 2010 City tax comparisons with other metropolitan- area cities of similar population, based on an average single family home valuation of $235,000; and is attached hereto and made a part hereof Discussion among Councilmembers and staff included 2010/2011 budget comparisons for Eme- rald Ash Borer (EAB), with the 2010 budget setting aside $50,000 for general maintenance on hazardous and diseased trees, and $100,000 allotted for 2011 for anticipated EAB infestation treatment and elimination; and separation of code enforcement costs. Further discussion included the significant increase in local tax rate comparisons for Roseville and peer cities in 2002, based on a structural change in how the State of MN shifted state aid to cities and corresponding increases in local state aid, with individual property tax payers supposed to receive comparable credits on their taxes; staff's rationale and projections for revenue source reductions, and staff's review of their calculations and assumptions in projecting those revenue reductions. Mr. Miller provided several examples, including reduced transaction volume at the License Center due to general demand and the current economy and impacts to vehicle sales and passports; and potential funding formula changes on the state and federal level that may impact some street maintenance programs. Councilmember Ihlan noted that staff was proposing to increase tax levy dollars to replace reve- nue reductions rather than seeking those funds from other sources; and requested City Council