Laserfiche WebLink
<br />. <br /> <br />. <br /> <br />. <br /> <br />City Council Minutes <br />April 11, 2005 <br /> <br />Page 4 <br /> <br />video ahead of time that he would like it played for the public from 5:30 to 6 and not played <br />during the meeting. The Council concurred with this suggestion. Councilmember <br />Gumphrey feels that staff has their hands full to try to compare and improve. <br /> <br />5.5. <br /> <br />Capital Improvement Program (CIP) <br /> <br />Finance and Administrative Services Director Lori] ohnson introduced Mark Ruff and Bruce <br />De] ong of Ehlers and Associates, Inc., who gave a presentation regarding the City of Elk <br />River's Financial Management Plan. This Plan is to enable the Council to make funding <br />decisions and establish priorities for projects within the Capital Improvement Program <br />(CIP). <br /> <br />Financial Management Plan Goals <br />· Identify baseline needs for community for the next 10 years. <br />· Provide framework for analyzing impacts. <br /> <br />Financial Management Plan Outcomes <br />· Treat budgeting as a multi-year process rather than a snapshot one year at a time. <br />· Integrate into a single document. <br />· Avoid roller coaster taxes - up one year and down the next. <br />· Identify appropriate level of cash and bonds for capital needs. <br />· Improve bond rating. <br /> <br />Financial Management Plan Specifics <br />· Focus on non-enterprise fund activities. <br />· Recognize that all assumptions will change. <br />· Focus on future tax rate and impact upon homeowners. <br /> <br />Assumptions for Tax Base <br />· Existing tax base grows 4% per year. <br />· New development creates 350 new homes per year valued at $225,000. <br />· Commercial growth of $6.5M every 2 years. <br />· Total annual tax base increased 9%. <br />· From 2004 to 2005, taxes grew 16%. <br /> <br />Revenue Assumptions <br />· Property tax revenue increases moderately over time to meet needs. <br />· Other revenue increases 3.5% per year. <br />· Licenses and permits-decrease to 2004 level. <br /> <br />Operating Expenses Assumptions <br />· General fund expenses increase 3.5% per year. Staffing additions are included as a <br />percentage of base salaries. <br />· Capital equipment will be funded with equipment certificates until 2007 when <br />operating budget is gradually increased. <br /> <br />Debt Assumptions <br />· Goal is to keep debt levy under 20% of total tax levy. <br />· Most existing debt matures in 5 years. <br />· Overall debt levy steady in future. <br />