12-16-1996 CC MIN - Laserfiche WebLink

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Elk River City Council Meeting December 16, 1996 Page 3 $2,986,809. The proposed net levy is $389,370 more than the adopted 1996 net levy. He further stated that the gross levy proposal is $3,570,055. The City Administrator informed the Council that the Truth in Taxation public hearing was held on December 2, 1996. The City Administrator explained that originally the tax rate increase was projected to be 3.1 percent. He further stated that the net tax capacity will increase by 11 percent rather than the anticipated 12 percent 'which will cause a 3.9 percent increase in the city tax rate. Councilmember Dietz indicated that he is not willing to increase the city's tax rate more than 3.1 percent because mailed notices were sent to residents indicating a 3.1 percent increase. COUNCILMEMBER DIETZ MOVED TO ADOPT RESOLUTION 96-111, A RESOLUTION AUTHORIZING THE FINAL TAX LEVY FOR CALENDAR YEAR 1997. COUNCILMEMBER SCHEEL SECONDED THE MOTION. THE MOTION CARRIED 4-0. The City Administrator advised the Council that a 3.1 percent increase in the city tax rate means that $25,500 worth of reductions in the tax levy will have to be made. The City Administrator stated that the budget will be adjusted to add revenues from the cash flow reserves. Councilmember Farber suggested staggering some of the proposed hirings to make up this amount. 7.1. 7.2. 7.3. Mechanic Position for Street Department The City Administrator stated that the Street Superintendent is requesting the addition of a mechanic position for the street department in 1997. COUNCILMEMBER DIETZ MOVED TO AUTHORIZE THE STREET SUPERINTENDENT TO ADVERTISE FOR A MECHANIC POSITION FOR THE STREET DEPARTMENT FOR 1997. COUNCILMEMBER FARBER SECONDED THE MOTION. THE MOTION CARRIED 4-0. Community Recreation Board Update Community Recreation Director Jeff Asfahl updated the City Council on recent Community Recreation Board activities. His update included youth initiatives, area programming, and regional planning for recreational development. Utilities Commission Update Councilmember Dietz updated the Council on the December 10 Elk River Utilities Commission meeting. His update included the following issues: electric rate study, water rate study, contract agreement with Anoka Electric, 1997 budget, and employee compensation. Review 1996 Budqet Amendments Assistant City Administrator Lori Johnson distributed the 1996 budget amendment summary for Council review. Loft Johnson reviewed the 1996 amendments including the revenues, expenditures, and encumbrances.