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. 250 MINUTES OF SPECIAL MEETING <br />OF THE EDINA CITY COUNCIL HELD AT CITY HALL <br />AUGUST 18, 1988 <br />8:OO A.M. <br />Answering rollcall were Members Kelly, Richards, Smith, Turner and Mayor Courtney. <br />The special meeting was held for the purpose of presenting to the Council the 1989 <br />Budget Assumptions in preparation for the budget hearings in September. <br />1989 BUDGET ASSUMPTIONS PRESENTED. <br />in preparations for the 1989 Budget hearings to be held during the month of <br />September summarized as follows. Levv Limits - The maximum tax dollars which the <br />City can levy is based solely upon the amount of taxes actually levied in the <br />preceding year. According to the 1988 property tax law, the City may increase its <br />1989 levy by 4% from its 1988 actual levy. In addition, the levy may be increased <br />by the greater of a) the percentage increase in number of households, or b) the <br />percentage increase in population, during the past year. Based on the greatest <br />increase, e.g. households numbers, the maximum 1989 levy may be increased by about <br />7.5%. The property tax law states further that the 1990 maximum levy may increase <br />by only 3% over the 1989 levy. <br />maximum for 1989 be levied. Council Salaries - By statute a change in salaries . <br />may not take effect until after the next succeeding municipal election. <br />Budget Study - The study provides a comparison of Edina's operations with other <br />Group V cities, e.g. Bloomington, Brooklyn Park, Burnsville, Coon Rapids, <br />Minnetonka, Plymouth, Richfield, Roseville and St. Louis Park, and were selected <br />due to similarity in demographics, population, employee types and size, and <br />proximity to Edina. <br />for a few selected general fund services; b) compared Edina's 1988 budgeted . <br />payroll amounts for the same services; and c) compared Edina's 1988 comparable <br />worth adjustments with other cities. The first two parts were done on a per <br />capita basis and were presented graphically for ease of analysis. <br />the per capita budget/payroll suggests that Edina ranks in the middle of the <br />selected cities for budgeted dollars and payroll dollars. The salary analysis <br />showed that for the majority of the selected positions, Edina ranks in the middle <br />of the Group V cities which is consistent with the Council's directive. 1989 <br />Budget Assumptions - Scenario 1 - Expenditures - Salaries $6,467,058 (4.00% <br />increase); Contractual Services $1,635,427 (3.00% increase); Commodities $647,024 <br />(3.00% increase); Central Services $2,562,661 (3.00% increase); Equipment $981,064 <br />(3.00% increase); and New Programs $324,610; Total $12,617,843 (6.26% increase). <br />Revenues - Taxes $9,197,648; Licenses & Permits $599,112 (6.00% increase); Fees & <br />Charges $1,954,286 (6.00% increase); Intergovernmental $866,797 (.OO% increase); <br />Total $12,617,843 (6.26% increase). Below levy limit by $46,431. Tax Capacity <br />Rate 10.2%. Scenario 2 - New Programs Total $482,242. Scenario 3 - New Programs <br />Total ($98,160). Discussion followed concerning the proposed new programs, <br />revenues from licenses/permits and fees/charges, medical/worker's compensation <br />expense, relocation of the Senior Center, and capital budgeting. Following the <br />discussion it was informally agreed by the Council that staff be directed to <br />prepare a proposed 1989 Budget with an overall increase range of between 4.00 and <br />5.00% to be considered at the first budget hearing scheduled for September 6, <br />1988. <br />Manager Rosland presented the following data <br />Staff would recommend that the State allowed <br />1988 <br />The analysis a) compared Edina's 1988 budgeted dollar amounts <br />The results of <br />No formal action was taken and no other business was presented. <br />at approximately 9:30 a.m. <br />Meeting adjourned <br />I <br />I <br />I <br />. .. <br />City Clerk