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1999 Budget Memo <br />August 31, 1998 <br />Page 8 <br /> <br />The HRA and EDA budgets are proposed to levy to the maximum allowed by <br />law. The details of these budgets have yet to be completed. The city has <br />always levied to the maximum allowed by law for these two budgets. It is the <br />conclusion of the EDA and HRA that this revenue will again be needed in <br />1999 in order to finance additional staff support for economic development <br />activities and for the projects currently being discussed. <br /> <br />The Landfill budget is straightforward. Landfill revenues cover expenditures <br />associated with monitoring activities at the landfill. <br /> <br />The Ice Arena budget needs more discussion by the Council as we are slowly <br />but surely getting a clearer picture of annual revenues and expenditures. <br />This is the only expenditure budget that is included with this memo. The <br />original projections from the Marquette feasibility study are not being <br />realized. The deficit in 1996 and 1997 is approximately $55,000. Over time <br />the facility should cash flow, but the 1996/1997 deficit needs to be addressed. <br />The proposal includes using the $36,000 the city has put away over the past <br />few years for ice arena "emergencies," and using $19,000 from the 1999 tax <br />levy. Reserves could be used in lieu of the tax levy. The estimate for 1998 <br />and 1999 is better than the deficit that was realized in 1997, but progress is <br />slow as expenditures have exceeded projections for the operation of two ice <br />rinks and revenues have not matched expectations. <br /> <br />MISCELLANEOUS FINANCIAL ISSUES <br /> <br />Last year under this budget worksession topic, we discussed a number of <br />equipment purchases (in order to keep the next year's requests down), a <br />number of personnel adjustments, the library improvements, and <br />improvements at the old Nord house. This year our main topic is some <br />personnel issues. The budget meeting is one of the City Council meetings <br />throughout the year where the Council typically makes some decisions on <br />personnel issues. The City Personnel Committee is still working on some <br />requests and most of the recommendations are not yet ready for City Council <br />consideration. However, on 8/31 there will be a number of requests verbally <br />presented for the City Council's deliberation. <br /> <br /> CITY COUNCIL ACTION <br /> <br />At the August 31, 1998, City Council budget worksession, or at a follow up <br />City Council worksession, the City Council should consider the following: <br /> <br />1. Motion approving the EDA tax levy resolution. <br /> <br /> <br />