2015.09.01 WS Minutes - Laserfiche WebLink

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the city that ivorks for ,sou Council Worksession September 1, 2015 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, Craig Schlichting, Bob Jacobson and Sandy Brueur Guests in Attendance: 2016 Budget Lotter stated this was the Council's second chance to discuss the 2016 budget. He noted that Finance Director Davitt had a presentation for the Council. He noted that the Council would have several more weeks to discuss the budget, but noted the City's special taxing districts would be approved on September I" by the Council. Davitt provided a summary of the 2016 budget noting there were no new staffing requests and would not use any reserve funds for operations. She reported there would be a reallocation of LGA to streets while the City would continue to support the Council's cash fleet, non -fleet and PMP. The budget had a reduction of TIF administration fees and street project administration fees, while the City worked to rely less on debt for street infrastructure. Davitt discussed how the proposed tax levy was consistent with historical averages. She provided comment on the proposed tax levies for communities in the metro area. It was noted that New Brighton had one of the lowest tax levies. She reviewed the impact the proposed tax levy would have on median value homes in the City. Lotter discussed the City's fleet and non -fleet plan further with the Council. He commented that the plan was adopted m2010 and again in 2012 to eliminate the need to issue debt. He noted this was a fully cash funded plan and all assets within the plan were identified with life expectancies determined. He provided comment on how the City assessed its equipment, vehicles and staffing needs. He encouraged the Council to be proud of the City's fleet and non -fleet plan. He recommended that the Council continue to fund the fleet and non -fleet fund in order to meet future expenses. Lotter understood the Council wanted to have a zero percent property tax levy. However, he believed this would be difficult to achieve when the City was proposing a 3.86% increase to the levy for street reconstruction and a 3% increase for General Fund operating expenditures. He then reviewed a budget alternative that could assist the City in reaching the desired 0% tax levy. He commented that decreases would have to be made to Council meals, elections, memberships, staffing, street improvements and fleet expenses. Lotter proposed that the Council consider the 3x3 budget alternative. He noted this option would allow for a street improvement levy (3.86%) and levy for operations (3%) which would eliminate the need to make