. 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 />Manager Rosland presented the following data
<br />Staff would recommend that the State allowed
<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 />. ..
<br />City Clerk