HomeMy WebLinkAbout2008-06-24 Council Special Meeting MINUTES
OF THE WORK SESSION OF THE
EDINA CITY COUNCIL HELD AT CITY HALL
JUNE 24, 2008
11:30 A.M.
ROLLCALL Answering rollcall were Members Bennett, Housh, Masica, Swenson and
Mayor Hovland.
Mayor Hovland said the purpose of the special work session was to review issues that
will affect the preparation of the City's 2009 Operating Budget.
Manager Hughes reviewed the typical schedule for budget preparation that began in
June and will end in December. He said the first step was to review the assumptions
upon which the budget will be built. In September the Council must adopt a maximum
levy that will be used to generate the Truth in Taxation Notices mailed to residents.
During the fall the budget will be completed and reviewed by the Council. The Council
must hold their Truth in Taxation hearing in December and finally adopt the 2009
Operating Budget at one of their December meetings.
Mr. Hughes reported the 2008 legislature enacted levy limits that will affect
municipalities for each of the next three years. Each city's levy may increase by no
more that 3.9% over the previous levy. He reviewed the items that would be
considered outside of the levy limits including: special levies for new or existing debt,
the increases to PERA required by statute, and possibly public safety personnel costs.
Mr. Hughes said that as staff gets more specifics about expenditures that will be
outside of the levy limits they will communicate this information to Council.
Mr. Hughes reviewed forecasts used in developing the three 2009 scenarios, which
included:
Expenditures:
• Wage and Employee Benefits — a three and one-half percent wage increase for
our employees was included, plus an additional one-half percent to account for
employees who will go through salary steps in 2009.
• Insurance Increases — Employee health insurance has an expected double digit
increase percent for 2009. The forecast includes either a $25 or $50 per month
per employee increase toward employee insurance coverage.
• Contractual Services — A two and one-half percent across the board increase in
contractual services was used to develop the scenarios.
• Commodities and Central Services — A three percent increase for commodities
and central service expenses was projected for 2009.
• Budget Adjustments — Department Heads' proposed new programs/expenditures
for 2009.
Revenues:
• Non-Tax Revenue — In past years, the City has followed a conservative approach
in forecasting revenue from "non-tax" sources. Based upon past experience, the
Minutes/Edina City Council/Work Session June 24, 2008
City was projecting additional revenues from building permits and ambulance
fees. The added revenue would reduce dependence upon property tax
revenues to support the 2009 budget.
Mr. Hughes reviewed possible budget scenarios. The first scenario presented did not
include any new programs. The first scenario would have a 6.2 percent increase in
expenditures with a corresponding 9.9 percent increase in taxes. The second scenario
included all the requested 2009 new programs/expenditures and would result in an
approximate 7.9 percent increase in expenditures and corresponding 12.0 percent
increase in taxes. The third scenario included Mr. Hughes' recommendations for new
programs/expenditures and reductions necessary to comply with the levy limits and
would result in a 3.9 percent increase in expenditures and a corresponding 6.7 percent
increase in taxes.
The Council briefly discussed the proposed 2009 Budget scenarios, gave direction
about the percentage increases they would feel reasonable for 2009, and reviewed the
proposed schedule for the 2009 Budget preparation and adoption.
Mayor Hovland declared the meeting adjourned at 1:30 p.m.
Respectfully submitted,
Deb Mangen, City Clerk