10-09-1989 CC MIN - Laserfiche WebLink

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e City Council Minutes October 9. 1989 Pat K1aers. City Administrator. indicated that the budget has been reviewed by the Council in July. He stated that the budget being presented tonight is a draft budget although many of the figures have been known and reviewed by the Council. He stated that there will be changes in the figures that are presented tonight because there is a budget gap. He indicated that the figures in the budget are based on the vetoed 1989 tax law. The City Administrator stated that the City is proposing revenues in the amount of $2.424.600. which represents a 13% increase over the 1989 budget. He further indicated that the City is proposing expenditures in the amount of $2.457.050. leaving a budget gap of $32.450. The City Adminstrator proceeded to review the budget. He reviewed the source of funds and also reveiwed each individual budget within the City. As he reviewed each budget he highlighted the total amount of expenditures for each budget. the percentage increase from 1989 to 1990 and the major causes for the increase in the budgets. The City Administrator then proceeded to review the special levy budgets consisting of Library. Dutch Elm. Infrastructure Replacement. City Special Assessments. Equipment Certificate Capital Outlay. Sanitary Landfill. The City Administrator explained that there presently is a $32.000 gap in the budget and that this gap mayor may not remain depending on the tax law changes. If there is a budget gap. the City can look at adding money to the budget from reserves. He indicated that the proposed city budget is to increase by 13%. which was less than the increases from the past few years. e Lori Johnson. Finance Director. explained that the notice whihc was published in the paper regarding the budget hearing was dictated by State law and was very misleading. She indicated that the City reviewed the budget based on the 1989 tax law and that the public hearing notice was based on the 1988 tax law. She indicated that the increase to the tax payers. should the proposed budget be adopted. will be very minimal because of the growth in the City. Lori Johnson reviewed the tax proportions which are distributed to the County. the School District. the City. and the special levies. She indicated that the City of Elk River collects about a $133 per capita and that this is one of the lowest in the County as far as the tax capacity rate. She indicated that in the overall picture of the tax payers dollars. 24% of the money goes to the City and the remaining goes to the County and the School District. e Mayor Tra11e indicated that the budget reviewed tonight is a draft budget. He indicated that the Council has been discussing this budget since July and that they will not know the final numbers for the tax levy until October 23. He noted that the purpose for the public hearing was to receive input from the public regarding the City's budget process and in the way the dollars are spent and distributed. Mayor Tra11e opened the public hearing. 3.