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City Council Minutes <br />June 22, 2020 <br />Page 2 <br />Mayor Dietz asked if there were any budgeted items not used because of COVID-19 <br />that may have saved money. <br />Ms. Ziemer will provide Council with information on possible savings. <br />Mayor Dietz asked about the federal funding that the city would be receiving to pay <br />for COVID-19 related expenses. <br />Mr. Portner outlined some costs related to COVID-19 including VPN networks, <br />laptops, plexiglass, fogging machine, and costs to change processes. The allocated <br />$1.8 million could potentially also pay for utilities or EDA loans or grants. <br />Council asked if some staff may be permanently moved to work from home and if <br />COVID-19 had revealed any organizational or structural changes that might be <br />beneficial going forward. <br />Mr. Portner will evaluate. <br />Mayor Dietz asked about the amount allocated to equipment purchases noted in the <br />budget. <br />Ms. Ziemer stated the proposed 6% increase would help plan for future large <br />purchases such as snow plowing equipment or dump trucks. <br />Council agreed they would like to see a flat tax rate of 46.2% to help residents <br />through recent economic events while maintaining the same level of city services. <br />Councilmember Ovall noted the Board of Appeals process had several retail appeals. <br />Council noted that, even if the city's tax rate does not increase, it doesn't mean that <br />homeowners property tax will not increase. This is also dependent on county and <br />school increases. <br />Mr. Portner said they do not have finalized numbers on some items such as fuel, <br />healthcare renewals, or salt. Historically, budget projections have decreased from <br />preliminary numbers. <br />Council asked about Local Government Aid (LGA) and Minnesota Supplemental <br />Aid (MSA) funding and what if it went away. <br />Mr. Femrite explained that MSA is constitutionally dedicated from gas tax. The <br />amount might decrease due to reduced travel and fuel costs. <br />Council asked about the Senior Activity Center. <br />Mr. Portner stated staffing was part of the General Fund but programming is <br />supported by the tax levy. Once the new Senior Activity Center is finished, as part of <br />the multipurpose facility, seniors will need to become members and there may be <br />r0 N E O E 0 0 r <br />JATUR <br />