9.1. SR 09-05-2006 - Laserfiche WebLink

Home Browse Search

City of Elk River REQUEST FOR COUNCIL ACTION Agenda Section Meeting Date W orksession Se tember 5, 2006 Item Description Discuss 2007 Bud et Administrator Introduction We will continue the 2007 budget discussion focusing on the parks and recreation department and general government departments. The proposed levy and General Fund budget, HRA and EDA levies, and truth-in-taxation hearing date will be approved on September 11. September 15 is the final day for certification of that information to the county. Discussion The attached proposed General Fund budget is balanced, but there are several requests that are not included in this proposal and the tax revenue is subject to change. The tax revenue included in the proposed budget assumes an eight percent increase in the city's net tax capacity (NTC). At this time, County Assessor Jerry Kritzek assumes the NTC will increase between eight and nine percent. An updated abstract with a more accurate estimate of the NTC should be available in the next week. Last year's increase was approximately 15 percent. Below is a list of items that need to be discussed before approving the proposed budget: . $10,000 is included for the Elk River Area Arts Alliance. They have submitted a request for $20,000. They would like to make a presentation to the Council regarding their increased request. This is tentatively scheduled for October. A RSVP request for approximately $5,000 is not included. A memo of support from Bill Maertz for this request will be distributed on Tuesday evening. I concur with Mr. Maertz's recommendation. The police department's software purchase is not included because the actual 2007 cost has not been determined. Additionally, Chief Beahen is working on a grant that may pay for a sizable part of the cost. Chief Beahen should have updated information on both the cost and grant before September 11. $106,750 is included as a transfer to the Ice Arena to meet the Arena's operating shortfall. Last year's budget included a transfer of $79,150. The proposed 2007 Arena budget calls for a transfer of $212,600. With an increase in ice rates and expenditure cuts, the proposed transfer can be reduced from the original request. A long term plan needs to be developed to fund the Arena's on-going capital equipment and building costs. One request not included in the $106,750 transfer that will need to be done in 2007 is $28,000 to re-skin the ice plant. This either needs to be included in the transfer or funded by a reserve. Bill Maertz and Rich Czech will be prepared to discuss this budget on Tuesday. I will provide additional information on the availability of reserves to fund the $28,000 capital request. . . . S:\Council\Lori\2006\Budget 090S06.doc