HomeMy WebLinkAbout2006-08-01 Council Special Meeting MINUTES
OF THE SPECIAL MEETING OF THE
EDINA CITY COUNCIL HELD AT CITY HALL
AUGUST 1,2006
5:00 P.M.
ROLLCALL Answering rollcall were Members Housh, Hulbert, Swenson and Mayor Hovland. Absent was
Member Masica.
Mayor Hovland stated the purpose of the Special Meeting was to begin the public hearing process on the
preliminary 2007 budget. He reviewed the preliminary schedule for budget adoption noting the City Council
would establish a maximum levy for the 2007 budget at their September 5, 2006, Council meeting. He added
that in early December 2006 the Council would conduct a Truth in Taxation hearing before final budget
adoption later in December. Mayor Hovland stated this meeting would focus first on advisory boards and
commissions' testimony before reviewing the budget in detail.
Manager Hughes stated the Council may decide to impose a lesser levy than what they decide to adopt at
their September 5, 2006, meeting, but they may not impose a higher levy. He gave a brief overview of the
2007 Draft Operating Budget beginning with the General Fund expenditures, noting the main components of
the expenditure increases included: 3% cost of living increase factored into wages, $60/month health
insurance increase for employees, increase in property and liability insurance coverage which run from July
to July, fuel cost increases and commodities related to petroleum which would include items such as asphalt,
etc. Mr. Hughes noted there would be a decrease in legal costs with the new prosecutor. He said the last
increase was from an expenditure for the comprehensive plan, since the updated Comprehensive Plan was
due in 2008 which meant 2007 was the work year for compiling the update. Mr. Hughes added it was
proposed to use reserves from the 2005 Budget as a one-time expenditure to fund the work of updating the
Comp Plan during 2007.
Mr. Hughes said that new services in 2007 were mainly staff oriented noting the following proposed
additions: Utility engineer to be funded out of the Utility Fund, a new detective, a paramedic/firefighter
which would be partially off set by a reduction in overtime, two new part-time inspectors in Building to
cover the many inspections and a new IT person due to the complexity of the City's computer and telephone
systems. Mr. Hughes explained the rationale for all the proposed new hires and discussed with Council the
reasons for each proposed addition. He pointed out that it had been quite some time since new positions had
been added to staff. Mr. Hughes said the expenditure increase to support the proposed budget would be
approximately 6.8% for a total of$29,493,804.
Mr.Hughes reviewed and explained the 2007 estimate of non-tax revenues which would include:
• Licenses and permits increase$200,000 0 Investment income increase$45,000
• Ambulance revenue increase$125,000 0 Liquor transfer$721,200
Mr. Hughes said the 2007 tax levy for the General Fund was proposed to be increased 4.7%, with the Debt
Levy proposed to be decreased 7% which would require a total tax levy increase of 3.4%. He explained the
debt levy would be decreased by a one-time use of the 2005 reserve to cancel the last year of the equipment
certificates debt due in 2007.
Mr. Hughes explained the 2007 Budget would result in a fund balance of about 42% which was within the
recommended guidelines of the State Auditor (30%-50%). He said that cities generally receive their twice a
year when its gets a tax settlement in July and again in December. The purpose fund balance for the General
Fund was to pay the bills in between the time when tax settlements were received. Mr. Hughes added that
Minutes/Edina City Council/Special Meeting August 1,2006
the annual financial statements capture the best financial scenario because all the City's bills were paid and
the December tax settlement had been received, but the City must wait until July before its next receipt of
taxes so the fund balance would be used to pay expenses.
The Council asked if the proposed reserve included any of the 2005 reserve. Mr. Hughes explained that
approximately$450,000 had been spent and approximately$800,000 remained.
Council discussion of the proposed 2007 Budget included: loss of market value homestead credit, impact of
required increases to the City's contribution to PERA, 2005 reserves one time uses, proposed new positions
for 2006,and update of the Comprehensive Plan.
Human Relations Commission Presentation
Mary Brindle, Chair, Edina Human Relations Commission, reviewed the process the Human Relations
Commission used in arriving at their following recommendations for Human Services Funding:
PROFESSIONAL SERVICES
Senior Community Services $27,800
Cornerstone 15,100
VEAP 17,500
Women In Transition 4,750
The Bridge $4,000
Minneapolis Mediation Program 5,000
Normandale Center $5,000
The Bridge 5,000
Store to Door 3,600
Chrysalis 3,660 $86,350.00
OPERATIONS
Continuing Education $250
Dues $200
Materials $500
Program/Citizen Participation $800 $1,750.00
Edina Resource Center $35,061.00
Research,Planning&Coordination $11,641.00
The Council thanked the Commission for their work in developing their proposed budget. They also asked
for more detail on the numbers of Edina citizens served by some agencies. Details will be provided to the
Council before final adoption of the 2007 Budget.
Mayor Hovland reminded the Council there would be a Truth in Taxation Hearing in December 2006, and
the Council would adopt the 2007 Budget at its regular meeting later in December 2006.
Motion made by Member Swenson and seconded by Member Housh to close the Year 2007 Budget
Hearing.
Ayes: Housh,Hulbert,Swenson,Hovland
Motion carried.
Mayor Hovland declared the meeting adjourned at 6:50 P.M.
Respectfully submitted,
1 City Clerk