08-31-1998 CC MIN - Laserfiche WebLink

Home Browse Search

Elk River City Council Minutes Page 3 August 31, 1998 District to pay the city 50 percent of the cost for this project and, if an assessment appeal is successful for the 1999 project on the east side of Proctor Avenue, then their payment for the west side of Proctor Avenue will be adjusted on a pro rata basis. MAYOR DUITSMAN MOVED TO NOT DO THE PROJECT ON THE WEST SIDE OF PROCTOR UNLESS THERE ARE NO REIMBURSEMENT CONDITIONS ASSOCIATED WITH THE PREPAYMENT. COUNCILMEMBER FARBER SECONDED THE MOTION. The City Council discussed whether or not the work on School Street on the east side of Proctor Avenue was related to the work on the west side of Proctor or whether they were separate, independent projects and, accordingly, should not be tied together financially. MAYOR DUITSMAN WITHDREW THE MOTION. COUNCILMEMBER FARBER WITHDREW THE SECOND. COUNCILMEMBER THOMPSON MOVED TO ACCEPT THE 50 PERCENT PREPAYMENT FROM THE SCHOOL DISTRICT FOR THE WORK ON SCHOOL STREET WEST OF PROCTOR AVENUE WITH THE UNDERSTANDING THAT IF AN ASSESSMENT APPEAL IS SUCCESSFUL FOR THE PROJECT ON THE EAST SIDE OF PROCTOR AVENUE IN 1999, THEN THIS PREPAYMENT FOR THE 1998 WORK WILL BE REIMBURSED ON A PRO RATA BASIS. COUNCILMEMBER FARBER SECONDED THE MOTION. THE MOTION CARRIED 5-0. Bud.qet Worksession The Mayor and City Council discussed the .$100,000 general tax levy for capital improvements that is in the 1998 budget. The Council acknowledged that these funds had to be applied toward the city's share of the Lake Orono project. This city share is in addition to the assessments for the city property on Lake Orono. It was the consensus of the City Council that another .$100,000 for this project should be in the 1999 tax levy resolution. The 1999 proposed revenues were presented and discussed as compared to the adopted 1998 budget. The city tax levy and tax rate information was reviewed. It was noted that there was an error in the budget memo whereby in the middle of Page 3, the 4 percent reference should have been 7 percent, and the 6 percent reference should have been 14 percent. The Council acknowledged that there were sufficient funds within the levy limit requirements to meet the city's operating needs, but that it is doubtful that it will go to this levy limit based on an anticipated small net tax capacity (NTC) increase and the impact generating additional tax revenues will have on the city tax rate. The Assistant City Administrator distributed the 1999 preliminary levy estimates page and the 1999 NTC, tax rate, and levy information page for the 1999 budget. The Council discussed the compression of the tax classes and the impact of this on the city tax rate and budget. Furthermore, it was acknowledged that some type of city tax rate increase is to be expected in 1999.