08-31-1992 CC MIN - Laserfiche WebLink

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. . . City Council Minutes August 31, 1992 Page 5 expenditures are anticipated due to the new state requirement for cities to pay 6.5% sales tax. On a positive note, the City may be able to produce a balanced year end statement if limited City Council contingency expenditures take place. 7.3. 1993 Revenues The City Administrator reviewed with the City Council raise tax and HACA revenues by 5% and what affect the municipal tax rate. It was indicated that a goal see a near zero tax rate change. the proposal to this would have on of the City is to The City Administrator reviewed the shifting of the tax monies from the 1985 General Obligation Bond into the General Fund. It was noted that this was a rare opportunity to provide services for the municipality without raising the tax rate of the City. The City Administrator indicated that a goal in 1993 is to reduce City's reliance upon reserves in order to balance the budget. goal is reflected in the 1993 draft revenue projections. the This The City Administrator stated that the projected in the amount of $2,794,150. increase over the adopted 1992 budget. increase is $137,550. draft 1993 revenues are This represents a 4.85% The actual dollar amount The City Administrator reviewed with the City Council the changes in the revenues by categories. The areas of most significant increase are in the general property tax and intergovernmental revenues categories and the area of most significant decrease is in the transfers in category. Details on the proposal are included in the attached budget projections and the narrative from the City Administrator memo dated 8/24/92. 7.4. 1993 Expenditures City Administrator discussed the overall need to control expenditures when putting together municipal budgets. It was indicated that this is difficult due to the large amount of personal services within municipal budgets. In Elk River in 1993, this is also difficult as the City is expecting to move into a new City Hall facility which has additional expenses associated with it and the City has to pay the 6.5% sales tax for the entire calendar year. Additionally, the City is proposing to add 2 1/2 clerical positions which further increase ongoing expenditures. The Administrator indicated that one budget item that requires additional discussion is the need for a Fire Department equipment van and the desire of the Fire Department to have a commitment from the City Council regarding a contribution to its retirement fund. The City Administrator noted that in the draft budget, the wages are projected to increase 3.5%. The City Administrator indicated that the draft 1993 general fund expenditures are listed in the amount of $3,049,800. This represents a