CCP 09-23-2014 - Laserfiche WebLink

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I " Of the city that works for you Council Worksession September 2, 2014 5:00 pm Present: Mayor Dave Jacobsen Councilmember Gina Bauman Councilmember Brian Strub Councilmember Paul Jacobsen Councilmember Mary Burg Absent: Staff in Attendance: Dean Lotter, Brenda Davitt- Finance Director and Kevin Mannetter- Interim Finance Director. Guests in Attendance: 2015 Budget Discussion Lotter reviewed the 2015 proposed budget with the Council in detail. He discussed the format of the budget along with the significant changes planned for 2015. He provided comment on the shrinking middle class along with COLA. He requested feedback from the Council on the budget and levy proposal. It was staff s hope to have the levy certified at the September 9th Council meeting. Councilmember Jacobsen asked how Obamacare would impact the 2015 budget. Lotter reported the City would have higher fees in 2015 from Obamacare, however, this may be postponed to 2016. Further discussion ensued regarding the City's full and part-time employees, along with their insurance benefits. Councilmember Bauman asked how much LGA the City would be receiving in 2015. She expressed concern that the City was using LGA year after year to reduce the levy and feared how the City would impacted if LGA were to disappear. Lotter explained the City would be receiving $554,000 in LGA from the State in 2015. He reported that the 2015 budget was consistent with the direction staff received from the Council. Councilmember Bauman asked how the City had used the over - taxation money received from the County. She believed this money should not have been taken or spent. Instead, it should have been used to reduce the levy amount. Lotter commented that those funds were being spent in the budget. Councilmember Bauman reported the majority of the City's levy was spent on salaries, benefits and step increases, and not for services. Lotter indicated that the staff working for the City provide services. He questioned what the ideal budget would look like. Councilmember Bauman wanted to see no levy increase and wanted to know how the $554,000 was delegated. She did not believe it was fair for New Brighton residents to assume an increase year after year when their incomes were not increasing. Lotter reiterated that the proposed levy would only increase taxes for the median home $11 per year. He recommended that Councilmember Bauman to realize that the budget had to operate in the "real world" and expect that there would be slight increases in expenses year after year. Councilmember Burg believed that New Brighton was offering a high level of City services for its residents and was only proposing a 1.9% levy increase. She was proud to say that the City had only a 1.9% increase.