08-25-2003 CC MIN - SPECIAL - Laserfiche WebLink

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City Council Nlinutes August 25, 2003 Page 5 Councilmember Tveite questioned if the truck could be purchased in components. Chief West stated that it possible that the chassis could be purchased in 2004 and paid for in 2005 when the rest of the truck is ordered. Mr. West noted that purchasing the truck this way could save the city $8,000-$9,000. Interest rates for equipment certificates were discussed. The Council expressed support for funding this purchase over two years, using a small amount of equipment reserves for the truck, and funding the balance by using equipment certificates. Ice Arena Barn Floor Mr. Klaers stated that the replacement of the Barn floor is in the CIP for 2005 but it is unknown how to fund the project and if the floor will last until then. Councilmember Tveite noted that it was the recommendation of the Ice Arena Commission at their August 19, 2003 meeting for the Council to allocate funds to replace the floor as soon as possible. Mr. Klaers noted that the Commission also recommended that the City Council allow up to $20,000 of arena equipment reserves to be used to begin preliminary plhns and design work on the floor. Arena Manager Rich Czech stated that some soil boring work needs to be done before the skating season if the project is to take place next year. It was the consensus of the Council to allocate funds to begin preliminary work on the barn floor now and to budget for replacement of the floor in 2004 when the CIP is updated later this year. Funding options for the floor replacement project were briefly reviewed. Pavement Rehabilitation Program (PRP) City Council discussion took place on the pavement rehabilitation program. City Administrator Pat I~aers and Finance Director Lori Johnson reviewed different funding options for the program with the Council. 2004 General Fund Budget Overview City Administrator Pat I<laers stated that the two major issues that the city has had to deal with in putting together the 2004 budget are the local government aid (LGA) cuts of $644,138 and the levy limits. Mr. I~aers stated that in 2004, 60% of the LGA cuts can be made up by way of a tax increase. Mr. Klaers stated that in order to make the budget work, the 60% has been added into the revenues. He also stated that a $100,000 levy for the street replacement project has been placed outside of the levy limits. Prior to 2004, the city tax levy for this program was within the limited levy. The Council discussed using the street reserves for the city share of the 2003 project and bonding for the taxes part and the special assessment part of the project. Expenditures Mr. I<laers stated that based on the June 2003 amended budget, the expenditures for 2004 are up 7.1% or $516,100. He stated that the expenditures in the proposed 2004 draft budget are $7,764,950. City Administrator Pat K. laers indicated that there are no reductions in hours or lay offs proposed for employees in the 2004 budget and the 3% cost of living increase, normal pay plan step increases, and an increase of $10 per month for insurance is also included in the budget. Council discussion took place as to having the city's pay plan evaluated. It was the consensus of the Council to have staff begin evaluating this issue within the next six months.