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WWMfON City of New Brighton the r;tr [hat w ks,W YW 2011 Budget Hearing Pursuant to notice thereof, a meeting of the New Brighton City Council was held Tuesday, December 7, 2010 at 6:30 pm in the New Brighton Council Chambers. Present: Mayor Jacobsen, Councilmembers Bauman, Samuelson, Burg and Phillips, Also Present: Dean Lotter -City Manager, Schawn Johnson -Assistant to the City Manager, Dan Maiers-Finance Director, Bob Jacobson -Director of Public Safety, Dan Olson -Deputy Director of Public Safety, Katie Bruno -Office Assistant City Manager Dean Lotter explained this meeting is required by law to allow City's an opportunity to present and discuss the budget for the upcoming calendar fiscal year. Finance Director Dan Maiers went over the purpose and goals of the budget. It was explained that the approach to the 2011 budget began with the 2010 budget, the 2010 budget was reduced by $226,900. Most of the adjustments made in 2010 are being carried over to 2011, with adjustments in hiring. Any unfilled positions in 2010 were not budgeted for 2011. The Parks, Recreation and Environmental Commission reviewed the programs offered, and recommended significant reductions. The General Fund Expenditures have been decreasing since 2009. It was reported that personnel costs account for ' about 60% of the General Fund Budget. The City has three unions, Police, Sergeants and Teamsters. The Police and Sergeants contracts have been settled, a 2% Cost of Living Adjustment (COLA) along with programs salary steps have been implemented. The Teamster contract is still in the negotiation process; however a 2% COLA and program salary steps are included in the 2011 budget. A proposed 2% COLA for non-union personnel is included in the 2011 budget as well. A vacant police officer position has been eliminated from the budget. The IT department has made significant adjustment to the replacement schedule, in the amount of $147,600. Total expenditures were reduced in 2011 by $403,100. The City has experienced changes in the Non -property tax revenue, the State will not be providing Local Government Aid or MVHC in 2011. The Family Service Center recreation program revenues are anticipated to decrease by $156,600, and the lease revenues from the FSC are expected to decrease by $99,100. Building Permit revenue is expected to increase by $50,000. The proposed tax levy for 2011 was reported as $7,395,708, exactly the same as 2010. The 2011 City tax rate was reported to be 37.690%; the 2010 City tax rate was 36.768%. Director Maiers offered an explanation of the tax rate and how taxes are calculated; explaining taxes do not necessarily decrease if the property value decreases. Mr. Maiers explained there can be a variety of reasons taxes fluctuate; including overlapping taxing jurisdictions, State, and property valuations. The City's long term financial plans include the avoidance of erratic unpredictable trends in the tax levy, continue to follow the Fund Balance Policy in regards to reserve funds. The long term financial plan is implemented annually with the budget. The final 2011 Tax Levies and Budgets will be considered at the regular scheduled council meeting December 14, 2010. Mr. Maiers reported there was one email inquiry received related to the budget. Mayor Jacobsen read the email from Carol Kurzman, 1519 12d' Terrace NW. Ms. Kurzman expressed appreciation for the cost saving efforts of the elected officials lately, and requested even a greater effort in reducing the tax levy.