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CORRECTED MINUTES <br /> OF THE WORK SESSION OF THE <br /> EDINA CITY COUNCIL HELD AT CITY HALL <br /> JUNE 19, 2007 <br /> 5:00 P.M. <br /> ROLLCALL Answering rollcall were Members Bennett, Housh, Masica and Mayor <br /> Hovland. <br /> Mayor Hovland said the purpose of the special work session was to review issues that <br /> will affect the preparation of the City's 2008 Operating Budget. <br /> Manager Hughes explained the 2007 legislature did not enact any significant changes to <br /> property tax laws. Therefore, the City's 2008 budget planning would not be affected by <br /> levy limits, property tax freezes, or any other provisions that would further restrict the <br /> Council's budget considerations. He noted the City would receive a Market Value <br /> Homestead Credit in 2008, therefore the 2008 levy will not need to include that amount. <br /> Mr. Hughes also noted 2005 legislation increased the PERA employer contribution <br /> which has been estimated at approximately $100,000 for 2008. Mr. Hughes reminded <br /> the Council the 2008 levy will see an increase of $455,641 in the levy to cover the first <br /> year of the debt levy for the Fire Station Debt which will increase the percentage of the <br /> levy increase. <br /> Mr. Hughes reviewed forecasts used in developing the 2008 scenarios, which included: <br /> Expenditures: <br /> • Wage and Employee Benefits - a three and one half percent wage increase for <br /> our employees is included plus an additional 1/2% to account for employees who <br /> will go through salary steps in 2008 <br /> • Insurance Increases-Employee health insurance has an expected increase of <br /> sixteen percent for 2008. The forecast includes either a $25 or 50 per month per <br /> employee increase toward employee insurance coverage <br /> • Contractual Services, Commodities - A three percent across the board increase in <br /> contractual services and commodities and a three percent increase in central <br /> service expenses were projected for 2008 <br /> • Budget Adjustments-Department Heads' proposed new programs/expenditures <br /> for 2008 <br /> • Capital Plan Appropriation - the general fund appropriation to the Capital <br /> Improvement Plan remains at$50,000. <br /> Revenues: <br /> • Non-Tax Revenue - In past years, the City has followed a conservative approach <br /> in forecasting revenue from "non-tax" sources. Based upon past experience the <br /> City was projecting additional revenues from building permits, ambulance fees <br />