09-12-2005 CC MIN - Laserfiche WebLink

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City Council ~vfinutes September 12, 2005 Page 4 Council \Vi-shes to have an informal gad1ering and let the ideas flow'\vith the inter-relation among the commissioners triggering other ideas. The theme of - "j\ Conversation '\\Ii.th Council" -was suggested. 5.4. Discussion on 2006 Municipal Budget and Tax Levy City _Administrator I<laers reviewed the proposed budget and stated that the biggest change since the last budget meeting on August 22 is the increase in our net tax capacity (NTC). This increase amount of 15.7370/0 is comparable to last year and is more than anticipated. It results in additional tax re\Tenues being available for general fund eA-pendituIes ,vithout a change in the city tax rate. IvIr. I<1aers discussed "\\rith the Council minor revenue changes and expenditure cuts that were made since the last budget meeting. The Council discussed the budget with questions involving: . Balance of available equipment reserves . Use of host fee reSe1\7eS . Equipment certificates and length of time . The amount of roads graded each year and needed street equipment Mayor I<J.inzing stated that she likes the way staff has done the Capital Outlay this year. She stated that it makes a lot of sense and is very clear. She asks that staff indicate more clearly in the future the amount that is going to'\vards travel expenditures and tuition reimbursement. Mayor I<J.inzing called a recess at 7:55 p.m. The Mayor reconvened the meeting at 8:04 p.m. Ms. ] ahnson indicated that the City has equipment reserves of $570,000 but $200,000 is in the 2005 budget. She stated that \ve v.rill ha\re enough to fund the 2006 budget but that \V"'e \vill not \vant to deplete this fund by much more. Discussion followed in regards to the 2006 Capital Outlay. Councilmember Gumphrey had concerns about the hvo trucks for the Streets Department and feels that the certificates amount is high and \vould like to see one truck taken off of this budget. Counci1mernber Farber had concerns about future equipment needs and how we go about meeting those needs. He suggested instead of buying ne'\v to consider equipment that is a fe'\v years old. He stated that this year \ve may need to start looking at alternatives for next year. Councilmember Dietz stated that he feels now is the time to give the Streets Department the 1:\vo trucks \vhile we have the 160/0 NTC increase; that it may become more difficult in the future. He suggested approving \vhat the City Administrator is recommending. Councilmember Farber stated that he concurs that since \ve do have the necessary money that now is the time to purchase both vehicles but that we need to consider some alternatives for the future. Councilmember Gumphrey stated he \vould like to see the City build up equipment reserves and then '\ve could pay cash in the future.