09-29-1987 CC MIN - SPECIAL - Laserfiche WebLink

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e e e SPECIAL ELK RIVER CITY COUNCIL BUDGET MEETING HELD AT ELK RIVER CITY HALL SEPTEMBER 29. 1987 Members present: Mayor Estelle Gunkel, Councilmembers Schuldt, Holmgren. Tralle, Dobel. Staff present: Pat Klaers, City Administrator, Lori Johnson, Finance Director Pursuant to due call and notice thereof. the meeting was called to order at 6:10 p.m. by Mayor Gunkel. The purpose of this special City Council meeting was for a preliminary review of different financial options that are possible for the 1988 City Budget. Mayor Gunkel requested the staff to distribute the revenue options and expenditure proposals for 1988 and requested the staff to lead the discussion in explaining the figures and how they were determined. General Fund Revenue Option #1. which calls for revenues in the amount of $1,531,400 was discussed. This option showed GENERAL PROPERTY TAX and INTERGOVERNMENTAL REVENUES in the amount of $1,040,550. This amount represented a $75.050 increase over 1987 budgeted figures. It was noted that this increase in these two categories represented all but approximately $2,000 of the total increase over 1987 adopted figures. Revenue Option #1 showed an increase of $76,900 over the adopted 1987 revenues. The changes in the revenue projections of the remaining categories were indicated as follows. CHARGES FOR SERVICES showed an approximately $20,000 increase in 1988. based on administrative project fees increasing by $10.000 due to the administrative charges for the Main Street and Jackson Avenue projects that are planned in 1988. Also, Plan Check Fees were estimated to increase by approximately $9,000 based on actual year end projections for revenues in 1987. THE FINES AND FORFEITS category was projected to increase $6,600 and this projection was based on actual year end estimates for 1987. LICENSES AND PERMITS were projected to increase by $700. OTHER REVENUES was projected to decrease $2.500, based on the City no longer exchanging checks with the Electric Utility Department for street lighting which was in the amount of $22,000 in 1987. This decrease is offset by the City adding $20,000 as a revenue for HRA contributions. TRANSFERS was down $23,000, based on not using Recreation Reserve Funds and decreasing the Liquor Store contribution by $10,000. It was noted by the staff that this is the very minimum that can be expected for revenues in 1988, and that realistically more revenues are anticipated. General Fund Revenue Option #2 calls for an increase over revenue option #1 in the amount of $136.000. This would make the 1988 proposed revenue in the amount of $1.667,400. This represents $212,900 increase over the 1987 adopted budget. This is an approximately 14.6% increase in revenues. The $136,000 of extra revenues were located in the following areas. 1.)The City successfully receiving a levy limit appeal in the amount of $64,000 ($12,800 would be added to the Homestead Credit category and $51,200 would be added to the General Property Tax category). 2.)Under Public Safety. the school lias on program shows a $19.000 increase, based on School District participation in the financing of a second juvenile officer and the receiving of a $5,000 grant to help pay for this position. 3.)Payment in Lieu of Taxes shows a $43.000 increase. This is the money the City receives from the Electric Utilities and was projected to increase from $12.000 in Option #1 to $55.000 in Option #2.