12-08-1993 CC MIN - SPECIAL - Laserfiche WebLink

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Elk River city council Meeting December 8, 1993 Page 5 --------------------- e Part-time employees: 1992 actual-l05 part-time employees; 1993 adopted-65 part-time employees; 1994 proposed-96 part-time employees. Finance Director Lori Johnson reviewed the proposed urban and rural tax rates. She indicated that the proposed urban rate is 22.339% as opposed to 20.56% in 1993. She stated that the rural tax rate proposed for 1994 is 20.162% as opposed to 13.112% in 1993. Lori Johnson stated that these rates do not include the excess school levy. Finance Director Lori Johnson explained the reason for the large increase in the rural tax rate. She stated that the increase is due to a county error in parcel classification made in 1992, for taxes payable 1993, which was not allowed to be corrected at that time. The correction was made in the 1994 taxes, resulting in an increase of 54% in the urban taxing districts. Mayor Duitsman opened the public hearing. e Don Schumacher stated that the city budget is increasing by almost 13%. He indicated that this represents the growth in government spending which is faster than the growth and income in the community. He indicated it is the responsibility of the Council to set limits on the budget increase. He suggested a 5% increase in the budget and stated that growth in government spending must be curtailed. Don Schumacher stated that it is the city Council's responsibility to improve the tax base by encouraging industrial and commercial development in the city. Bob Turcotte, Albany Street, questioned whether the street lights. He stated he has three street neighborhood which are being paid for by the residents. referred Mr. Turcotte to the Utilities Commission. city pays for lights in his The Council In a response to Mr. Schumacher's comments on increased government spending, the city Administrator explained that there has been a need for additional employees for a long time, however, new employees could not be added in the Administration departments as there was no physical space available to house these employees. Additionally, some recent history in the City net levy changes indicates that last year the net levy increased 1.67% and the year before the net levy decreased 1.1%. Additionally, the city Administrator indicated that some of the increases in the budget are directly offset by reserve transfers or new revenues that are directly associated to the expenditures. This is done in order to show a more accurate reflection of total City expenditures and really should not be considered part of the "budget increase". If these expenditures were separated out, the budget would be increasing in the 7% to 8% range. e Councilmember Dietz stated he would like increase reduced to 5%. Councilmember increase in the Fire Department budget. to see the 8% tax levy Dietz commented on the large