CCP 12-13-2011 - Laserfiche WebLink

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IV& City of New Brighton the city that works for you 2012 Budget Hearing Pursuant to notice thereof, a meeting of the New Brighton City Council was held Tuesday, December 6, 2011 at 6:30 pm in the New Brighton Council Chambers. Present: Mayor Jacobsen, Councilmembers Bauman, Samuelson, Burg and Phillips, Absent: Also Present: Dean Lotter-City Manager, Schawn Johnson-Assistant to the City Manager, Dan Maiers-Finance Director, Bob Jacobson-Director of Public Safety, Sandy Breuer- Director of Parks &Recreation, Grant Fernelius-Director of Community Development, Grant Wyffels-Director of Public Works, Katie Bruno-Office Assistant City Manager Dean Lotter explained this meeting is required by the State to allow City's an opportunity to present and discuss the budget for the upcoming calendar fiscal year. It was explained that this meeting provides an opportunity for information sharing, and Council will take action at the December 13th council meeting. Finance Director Dan Maiers went over the purpose and goals of the budget. An objective for 2012 was to minimize the tax levy, while meeting the needs of the residents. The total proposed 2012 tax levy is $7,287,308. The City's General Operating Fund Budget for 2012 is $12,423,100, an increase of 1.86%, or$227,400, from the amended 2011 budget. There are few changes to the budgets from 2011 to 2012. The most significant one is a transfer of$172,000 to the Capital Replacement Funds in order to defer the issuance of more debt in the form of Equipment Certificates. Revenues from building permits are anticipated to increase by$58,500. Community Center revenues are expected to be $122,400 higher than in 2011. Mr. Maiers reported that the median value single family property has decreased from $218,100 in 2010 to $196,100 in 2011; 10.1%. Recent changes in state laws have had a significant impact on how properties are taxed. The Market Value Homestead Credit program has been replaced with the Homestead Market Exclusion Program. Mr. Maiers provided an example of effects of the change. The next steps include consideration of final adoption of the 2012 Levies and Budget at the December 13th Council meeting. Motion by Councilmember Burg, seconded by Councilmember Phillips to open the Public Hearing. 5 Ayes- 0 Nays,Motion carried, The Public Hearing was opened at 6:55 pm. Bob Benke, 301 Wexford Heights Dr. questioned if the proposed budget includes a 2%pay increase to non-union employees. City Manager Lotter confirmed that the 2012 budget does include those increases. Council discussed at an earlier worksession, looking at an alternative way if issuing increases,perhaps a merit type compensation, keeping the base line expenditure unchanged. Mr. Benke commented that the City's favorable financial position, is due largely to the professional experience and expertise of the City Manager, Finance Director, City Council and City Staff. Mr. Benke suggested adding a line item to the budget to cover City Council expenses in the future. Mr. Benke questioned if the year-to-date accounts have been updated since the August memo was prepared. City Manager Lotter reported that accounts have been updated in early November. Mr. Benke questioned where the budget currently stands. City Manager Lotter reported that the budget is current, with a $311,000 surplus. The council has determined to dedicate $216,000 of that surplus to the City capital plan. Mr. Lotter reported that the City currently is well positioned in a cash