08-30-1993 CC MIN - Laserfiche WebLink

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. . . Elk River City Council Meeting August 30, 1993 Page 5 Councilmember Farber questioned when available to the Deerfield water problems. problem solved as soon as possible. there would be He indicated he a solution wanted the 7. 1994 Budget Worksession 7.1. Introduction The City Administrator financial issues that Elk years. Most of these local government funding commitments from the state. reviewed with River has had to previous issues formulas and the City Council some of the deal with over the past few related to the state changing mid-year cuts on funding A discussion took place regarding levy limits in previous years and its affect on the overall City tax rate. It was noted that levy limits were removed for the 1993 budget and are still removed for the 1994 budget. The main issue facing the City Council in considering the 1994 budget is providing adequate funding for new programs and personnel and not having this adequate funding issue result in a major tax increase. 7.2. 1993 Status The City Administrator briefly reviewed the status of the 1993 general fund budget. It was indicated that revenues are expected to exceed projections due to an increase in development activity. It was also indicated that it is very early in the year to be making year end expenditure projections, but that nothing unusual has taken place at this point. The City Administrator reminded the City Council of action taken by the County and by the City regarding the urban and rural taxing districts. It was noted that the rural tax rate went down significantly in 1993 due to classification changes at the County. This major decrease has been corrected by the City Council through an adjustment in the urban and rural taxing ratio. This change will result in a 37% rural tax rate increase even if no other changes take place. On an $86,000 home, this results in a $49.00 tax increase in the rural rate. The rural taxing rate decreased by approximately 25% in 1993. 7.3. 1994 Special Revenue Funds The City Administrator reviewed with the City Council the proposed 1994 special revenue funds. These funds include the library, equipment certificate, landfill, HRA, EDA, and special assessment budgets. The library, equipment certificate, and special assessment budgets are part of the City tax levy. The landfill budget is financed from the landfill surcharge and the EDA and HRA budgets are financed by special levies. No major changes were reflected in the library budget although the reserve for the future building project decreased slightly.