2018.09.11 CC Minutes - Laserfiche WebLink

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September 11, 2018 Page 3 of 5 increase 9% in 2019. The impact of the proposed property tax levy to the medium valued home was discussed with the Council. Staff also reviewed how the New Brighton's levy stacks up to comparable cities, while also breaking down how it was spent by the City's various departments. Finance Director Davitt reported noteworthy items representing the levy change includes $346,900 for the 2019 street reconstruction project, a $202,800 decrease in street debt payments as well as continued allocation of $100,000 in LGA funding for future street reconstructions and provide internal loan funding to become debt free by 2025 per Council's directive. Other noteworthy items include new personnel of $139,000, costs to retain and recruit personnel of $444,300 that include COLA, health care insurance contributions, the legislative police and fire PERA increase, and comparable salary study position adjustments. A "Turnover Ratio" is once again included in the 2019 budget. Finance Director Davitt commented the City has historically budgeted for all positions assuming they are filled 100% of the time. Due to normal turnover, some positions are vacant for a period every year. To recognize that fact and develop a tighter budget, $109,900 was placed into the 2019 proposed budget as a negative expenditure. It is worth noting the State of Minnesota provides a number of property tax relief programs that are designed to offset local tax increases. Depending on household income, residents could potentially receive a partial refund of their increased taxes. This would effectively reduce the tax impacts noted above. The 2019 Budget outlines key issues and financing strategies for our operations during the year. The 2019 Budget components reflect the City Council adopted priorities: financial sustainability, community engagement, economic development, effective service quality, and workforce engagement and development. It was noted a Public Hearing would be held on December 12th and the final budget would be approved at this Council meeting. Councilmember Allen commented on the debt free streets program and asked why the City's street mileage had changed. Community Assets and Development Director Schlichting described how staff came up with these numbers based on the streets that have to be reconstructed and those that could have a mill and overlay. Councilmember Jacobsen thanked staff for the thorough presentation and stated he appreciated the fact the City was moving towards debt free streets. Councilmember Burg commented she appreciated the long-term stability that was written into the proposed budget and levy. She thanked staff for all of their work on the budget. Councilmember Dunsworth stated she appreciated the transparency that was written into the visionary budget and levy documents. She thanked staff for all of their efforts. Councilmember Allen thanked Finance Director Davitt for providing the Council with a thorough presentation on the budget. He stated he appreciated the City's preparation and financial vision for the future. Mayor Johnson discussed the revenue collection per capita for New Brighton and comparable cities. She recommended that discussions surrounding the budget focus on numbers and not percentages. She noted all LGA funds from the State would be placed into the City's Streets Fund and was not going into the General Fund. She commented further on the importance of following through with the debt free streets directive. She commended the Council for sticking to its financial goals. Councilmember Burg thanked the Mayor for addressing the percentages and noted the proposed budget and tax levy was a risk for the City Council. However, she believed it was important for the Council to be forward thinking with a solid financial foundation. 5 Ayes, 0 Nays -Motion Carried 2. Consideration of Resolution Adopting the Proposed Tax Levies for Taxes Payable in 2019 2. Consideration of Resolution Adopting the for Lake Diane and Bicentennial Pond Storm Sewer Improvement Taxing Districts. Proposed Tax Levies for Taxes Payable in 2019 for Motion by Councilmember Jacobsen, seconded by Councilmember Burg to adopt a Resolution Lake Diane and Bicentmiial Pond Storm approving the Proposed Tax Levies for Taxes Payable in 2019 For Lake Diane and Sewerlmprovement Taxing Districts.