9.1. SR 09-06-2011 - Laserfiche WebLink

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llLrr~ 2012 City of Elk River Budget Prososal $144,789 Current deficit using no tax rate increase. I am very concerned about the tax rate. Tax rate increase to me is increase in taxes. After talking to the County Assessor, he told me residential values are dropping 8-10% in 2012 while commercial is decreasing 2%. We take advantage of increased tax revenue from homeowners when their property values go up. Why wouldn't we lower their tax by the same token when their value goes down? Also if tax rate is increased commercial properties will see a substantial increase in 2012 taxes. 125,873 Add back in 1 % across the board budget cut (60,000) Cut Energy City program-reduction in hours in Environmental staff. Based on the percentages given to us, Energy City takes approximately 20% of the staff's time. Hour reductions would happen for one or both of the department employees. Project Conserve was budgeted for $10,000. It appears amount will be less than that. Take the lower amount out of Council Contingency. ERMU should manage Project Conserve. (64,000) Put off hiring patrol officer-We operated without this position for most of 2011. 150,000 Pay increase for staff (2%). We have a lot of requests for more employees. The majority of taxpayers are asking for reductions in government, not increases. To me, it comes down to either hiring more staff or rewarding the employees who have worked extremely hard to keep us going. I favor rewarding the current employees. (82,000) Lay off building official. The Code Enforcement Official would work 50% of the time in code enforcement and 50% as a building inspector, thus causing on a reduction of four hours per day in the Building department. Code enforcement is more of a discretionary item. From 2005 to 2007 permit income exceeded building department wages and benefits by $1.9 million. From 2008 through June 30, 2011 building department wages and benefits have exceeded permit income by $31,000. (100,000) NTC drops 5%, not 6%. If the NTC does drop by 6%, reduce all budgets by '/2% ($65,000) and add $35,000 to ERMU contribution (115,000) Take from Landfill fund. I don't have a problem using some of this money to help the general fund when it needs it. Extraordinary times require extraordinary measures. ayor John Dietz September 6, 2011