HomeMy WebLinkAbout19910819_special171
MINUTES
OF !WE SPECIBL HEXTING OF TEE
EDINA CITY COUNCIL HELD AT CITY HBLL
AUGUST 19, 1991 - 5:OO P.M.
ROLLCALT.. Answering rollcall were Members Kelly, Paulus, Rice and Mayor Richards
Member Smith arrived at 5:12 p.m.
Manager Rosland stated that the purpose of this special meeting was to consider
a proposed 1992 Budget for the City of Edina. The City must certify its proposed
levy to the Hennepin County auditor and adopt a proposed budget by September 3,
1991. The City may only increase the levy by $29,240 over what was levied for
1991. In addition, the City may increase its 1992 Budget by $197,968 which
represents the uncollected real estate taxes for the year 1989 resulting from
court settlements that reduced real estate values. Staff would recommend that
the 1992 Proposed Budget be set at the maximum levy limit.
1992 BUDGET ASSUMPTIONS PRESENTED Manager Rosland presented the draft 1992
Budget assumptions summarized as follows:
Scenario 1: Total Revenues $13,933.262, Total Expenditures $13,933.262, Tax
Dollars $10,611.261, Tax Dollar Increase $202,189, Below Levy Limit $19, Percent
Increase Tax Dollar 2.24%, Expenditure Increase 2.62%. Total expenditures are
based on these proposed increases: salaries 3.00%, contractual services 3.00%,
commodities 4.00%, central services .OO%, equipment .OO% andnew programs $56,282
(net). Total revenues are based on these proposed increases: licenses and
permits 1.50%, fees and charges 2.00%, intergovernmental aid 18.50% (includes an
additional $100,000 from state highway tax funds) and taxes $10,636,261.
Scenario 2: Total Revenues $13,851,475, Total Expenditures $13,851,475, Tax
Dollars $10,529,475, Tax Dollar Increase $120,403, Below Levy Limit $81,805,
Percent Increase Tax Dollar 1.45%, Expenditure Increase 2.02%. Total
expenditures are based on these proposed increases: salaries 2.00%, contractual
services 3.00%, commodities 4.00%, central services .OO%, equipment .OO% and new
programs $74,155 (net). Total revenues are based on the same proposed increases
as Scenario 1, and taxes $10,554,475. The reduction innet new programs reflects
PERA/FICA at 2.00% increase in salaries.
Scenario 3: Total Revenues $13,773,262, Total Expenditures $13,773,262, Tax
Dollars $10,451,261, Tax Dollar Increase $42,189, Below Levy Limit $160,019,
Percent Increase Tax Dollar .70%, Expenditure Increase 1.44%. Total expenditures
are based on these proposed increases: salaries 3.00%, contractual services
3.00%, commodities 4.00%, central services .OO%, equipment .OO% and net new
programs ($103,718). Total revenues are based on the same proposed increases as
Scenarios 1 and 2, and taxes $10,476,261.
All three scenarios include the following:
1) An increase of $30 per month in health benefits (Flex Plan) to bring the
City's benefit package more in line with similar size municipalities.
2) Department cutbacks (hiring freeze) in the Park, Street, Engineering and
Police Departments and Manager cuts (national conferences) totaling $143,000
as reflected in the net total for new programs in all scenarios.
In Scenari 3, th n I t cost of the City's recycling program would be funded by
establishment of a Recycling Utility Fund whereby a $3.00 per quarter charge for
recycling would be included on the utility billing for single family and double
dwelling units.
~
Discussion and debate followed on these issues: whether to certify the maximum
levy, percent of salary increase, capital equipment replacement, healthbenefits,
affect of hiring freeze on services, philosophy regarding establishing a recycling
utility and percent increase for total budget. It was the consensus of the
Council to take formal action to certify the City's proposed levy and adopt a
proposed 1992 Budget at the regular meeting at 7:OO p.m. this date.
The meeting was adjourned at 6:42 p.m. with no formal action taken.
City Clerk