Laserfiche WebLink
MINUTES <br /> OF THE SPECIAL MEETING OF THE <br /> EDINA CITY COUNCIL HELD AT CITY HALL <br /> AUGUST 1,2006 <br /> 5:00 P.M. <br /> ROLLCALL Answering rollcall were Members Housh, Hulbert, Swenson and Mayor Hovland. Absent was <br /> Member Masica. <br /> Mayor Hovland stated the purpose of the Special Meeting was to begin the public hearing process on the <br /> preliminary 2007 budget. He reviewed the preliminary schedule for budget adoption noting the City Council <br /> would establish a maximum levy for the 2007 budget at their September 5, 2006, Council meeting. He added <br /> that in early December 2006 the Council would conduct a Truth in Taxation hearing before final budget <br /> adoption later in December. Mayor Hovland stated this meeting would focus first on advisory boards and <br /> commissions' testimony before reviewing the budget in detail. <br /> Manager Hughes stated the Council may decide to impose a lesser levy than what they decide to adopt at <br /> their September 5, 2006, meeting, but they may not impose a higher levy. He gave a brief overview of the <br /> 2007 Draft Operating Budget beginning with the General Fund expenditures, noting the main components of <br /> the expenditure increases included: 3% cost of living increase factored into wages, $60/month health <br /> insurance increase for employees, increase in property and liability insurance coverage which run from July <br /> to July, fuel cost increases and commodities related to petroleum which would include items such as asphalt, <br /> etc. Mr. Hughes noted there would be a decrease in legal costs with the new prosecutor. He said the last <br /> increase was from an expenditure for the comprehensive plan, since the updated Comprehensive Plan was <br /> due in 2008 which meant 2007 was the work year for compiling the update. Mr. Hughes added it was <br /> proposed to use reserves from the 2005 Budget as a one-time expenditure to fund the work of updating the <br /> Comp Plan during 2007. <br /> Mr. Hughes said that new services in 2007 were mainly staff oriented noting the following proposed <br /> additions: Utility engineer to be funded out of the Utility Fund, a new detective, a paramedic/firefighter <br /> which would be partially off set by a reduction in overtime, two new part-time inspectors in Building to <br /> cover the many inspections and a new IT person due to the complexity of the City's computer and telephone <br /> systems. Mr. Hughes explained the rationale for all the proposed new hires and discussed with Council the <br /> reasons for each proposed addition. He pointed out that it had been quite some time since new positions had <br /> been added to staff. Mr. Hughes said the expenditure increase to support the proposed budget would be <br /> approximately 6.8% for a total of$29,493,804. <br /> Mr.Hughes reviewed and explained the 2007 estimate of non-tax revenues which would include: <br /> • Licenses and permits increase$200,000 0 Investment income increase$45,000 <br /> • Ambulance revenue increase$125,000 0 Liquor transfer$721,200 <br /> Mr. Hughes said the 2007 tax levy for the General Fund was proposed to be increased 4.7%, with the Debt <br /> Levy proposed to be decreased 7% which would require a total tax levy increase of 3.4%. He explained the <br /> debt levy would be decreased by a one-time use of the 2005 reserve to cancel the last year of the equipment <br /> certificates debt due in 2007. <br /> Mr. Hughes explained the 2007 Budget would result in a fund balance of about 42% which was within the <br /> recommended guidelines of the State Auditor (30%-50%). He said that cities generally receive their twice a <br /> year when its gets a tax settlement in July and again in December. The purpose fund balance for the General <br /> Fund was to pay the bills in between the time when tax settlements were received. Mr. Hughes added that <br />