HomeMy WebLinkAbout19970616_specialMINUTES
OF THE SPECIAL MEETING OF THE
EDINA CITY COUNCIL
HELD AT CITY HALL
JUNE 16,1997 -- 5:OO P.M.
ROLLCALL Answering rollcall were Members Faust, Hovland, Kelly, and Mayor Smith.
1998 PROPOSED BUDGET ASSUMPTIONS AND ADJUSTMENTS PRESENTED Manager
Rosland presented a memorandum outlining proposed budget assumptions and adjustments for
1998.
Manager Rosland noted Governor Carlson signed into law the 1997 Omnibus Tax Bill. This law
imposes levy limits on all cities for taxes payable in 1998 and 1999. The law does not limit the
expenditures a City chooses to make, it limits the revenue allowed to be derived from property
taxes. This means the 1998 Edina property tax levy may not exceed its 1997 property tax levy,
adjusted by inflation and growth in number of households. The estimated increase in Edina 1998
tax levy is approximately $41 1,847. Manager Rosland noted some property tax expenditures are
not subject to levy limits. These include special levies (e.g. levies for debt service) and the local
share for matching grants received from the Federal or State government.
Manager Rosland, using an overhead projector and computer, explained and described the budget
scenarios based upon the assumptions and adjustments recommended by staff. He noted that
Scenarios I included all new programs and expenditures recommended by department heads,
while Scenarios 2 and 3 are variations of the first scenario. Manager Rosland pointed out the
percentage increases in property tax revenue, expenditures, and impact on the total property tax
bill for each of the three scenarios as follows:
Scenario 1 Scenario 2 Scenario 3
% Increase Tax $ Revenues 8.53% 4.56% 7.48%
% Increase in Expenditures 6.90% 4.43% 5.40%
Impact on Total Tax Bill 1.11% 0.59% 0.97%
Manager Rosland noted his recommendation is to adopt Scenario 2 and move to Scenario 3 only if
the City has an outstanding year.
COUNCIL DISCUSSION The Council discussed various scenarios including: the additional park
operating expenses, First Department Overtime, Recycling Coordinator position staffed at full time,
Enterprise Fund reserve, and alternative budget scenarios based upon other assumptions. The
Council would like to see the Equipment Replacement Fund, budget detail for five years, Fire
Department overtime detailed for five years, an analysis of the Health Insurance Contribution as a
percent of total cost as compared to other cities. Mayor Smith directed staff to provide the
requested information before the next budget assumptions meeting.
There being no further business, the meeting adjourned at 6:50 p.m. with no formal action taken.
. / U City Clerk