09-10-1998 CC MIN - Laserfiche WebLink

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SPECIAL MEETING OF THE ELK RIVER CITY COUNCIL HELD AT THE ELK RIVER CITY HALL THURSDAY, SEPTEMBER 10, 1998 Members Present: Members Absent: Staff Present: Mayor Duitsman, Councilmembers Dietz and Thompson Councilmembers Farber and Holmgren Lori Johnson, Assistant City Administrator and Pat Klaers, City Administrator Call Meetinq To Order Pursuant to due call and notice thereof, the special meeting of the Elk River was called to order at 6:00 p.m. by Mayor Duitsman. Consider 9/10/98 A.qenda If was the consensus of the Council that the agenda was acceptable as presented. 1999 Bud.qet Worksession The City Administrator noted that as of 8/31/98, the proposed budget had a gap between available revenues and proposed expenditures of .$$479,150. Since the August 31 worksession, staff has increased revenue projections by $111,800 and reduced expenditure requests by $223,450. These changes have resulted in a September 10, 1998, budget gap of $143,900. The current budget proposal shows expenditures at $5,339,450 and revenues at $5,195,550. Staff discussed with the City Council a handout which outlined the budget changes since August 31 which have resulted in this reduced budget gap of ,$143,900. Assistant City Administrator, Lori Johnson, reviewed with the City Council some preliminary 1999 tax levy information, the 1999 preliminary levy estimate, some 1999 city tax estimates as applied against homesteaded property and commercial/industrial property, and reviewed the education homestead credit changes for 1999. Additionally, the information that will show up in the truth in taxation notice that is published in the paper was reviewed. Based on current budget proposals, this notice will show that the budget is proposed to go up 9.9 percent and the tax levy is proposed to go up 11.63 percent. These figures assume that the City Council will certify a proposed maximum levy which includes the amount discussed on August 31, plus ,$150,000 in additional tax levy revenue. This extra $150,000 will cover the September 10 budget gap. The September revenue projections were reviewed and compared to 1997 actual revenues and the 1998 adopted budget. Concern was expressed about the city being dependent on its growth related revenues and what type of problems this will cause when the city's growth slows down. It was the general consensus of the Council that the revenues were projected sufficiently high for 1999.