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HomeMy WebLinkAbout2003 08-18 FCM• Financial Commission Meeting Minutes August 18, 2003 1. Call to Order The meeting was called to order by Chair Escher at 6:30 PM 2. Roll Call Members Present: Chair Escher, Commissioners Elftmann, Peterson, Nemec and Hruska. City Council Liaison: Council Member Bob Peppe Others Present: City Manager Michael McCauley and Assistant City Manager Curt Boganey Members absent and excused: Commissioner Blarney and Wilkinson. 3. Meeting Minutes Motion by Commissioner Peterson, Second by Commissioner Elftmann to approve the meeting minutes of August 4, 2003. Motion carried. 4. Next Meeting • The next meeting is scheduled for Monday, October 20, 2003 beginning at 6:30 PM. This will be a joint City Council/Financial Commission meeting. 7. Adiournment Motion by Commissioner Nemec, Second by Commissioner Hmska to adjourn the meeting. Meeting adjourned at 6:45 PM. Following adjournment, the Financial Commission met jointly with the City Council. The extract of that meeting follows. REPORT BY CHAIR ESCHER ON FINANCIAL COMMISSION REVIEW TO DATE Donn Escher, Financial Commission Chair, reported on the recommendations made by the Financial Commission for the 2004 Preliminary Tax Levy and franchise fee for gas and electric utilities. Mr. Escher discussed that the Financial Commission would also like to recommend that the City Newsletter be reduced to four issues per year. DISCUSSION OF PRELIMINARY LEVY AND GENERAL FUND BUDGET City Manager Michael McCauley discussed that the draft General Fund Budget indicated an assumption of a $560,247 increase in the operating levy above the 2003 operating levy, with an additional $21,500 for 5 Cities Senior Transportation and PRISM. In the process of the budget preparation to remove debt service from the General Fund Budget and the General Fund portion of the levy, the base revenue did not increase the $560,247 • over the 2003 operating levy. The draft budget proposed a franchise fee in the range of three percent to raise approximately $750,000. If the General Fund preliminary levy were set at $9,468,725 that would equal roughly $370,494 in additional taxes and $750,000 in franchise fees, which combined would equal the original target of 2/3 of the lost LGA; however, direct more of that replacement to street reconstruction. The General Fund would still have reductions associated with decreased interest earnings and lodging taxes. The 2004 debt service levies of $976,104 will be added to the operating levies, but will be accounted for as revenue to their respective Debt Service Funds rather than transferred from the General Fund to the Debt Service Funds. Mr. McCauley informed that overall the budget is balanced with a lot of unknowns at this time. Mr. Me€auley discussed franchise fees and requested direction from the Council as to what direction they would like to take for the September 8, 2003, City Council Meeting. The September 8, 2003, City Council agenda will address the preliminary levy. Mr. McCauley reminded that once the preliminary levy is set, the numbers can only be decreased and that the preliminary numbers levied on September 8, 2003, will be sent with the Truth in Taxation Notices. Council continued discussions regarding franchise fees and the impact these fees will have on residents. Councilmember Carmody expressed that she would like to see a higher tax levy and less cuts in the budget. Councilmember Niesen questioned what dollar amount the residents would have with the franchise fees. Mr. McCauley discussed that approximately three to four dollars a month would be added to for the franchise fees. Mr. McCauley suggested that if a franchise fee were going to be incorporated he would like to have staff start the ordinance process. Mayor Kragness expressed that she would like to keep the D.A.R.E. Program. There was discussion regarding the D.A.R.E. Program and the budget issues surrounding it. Councilmember Lasman informed that she will be discussing the D.A.R.E. Program at the next Crime Prevention meeting and that she will inquire about any possible grants. The Council recessed at 8:05 p.m. and reconvened at 8:15 p.m. The Council discussed the policy issues for Senior Transportation and PRISM. It was the consensus of the Council to drop PRISM. Councilmember Lasman suggested that something be included with the City's Newsletter. 9 Mr. McCauley and the Council discussed the shift of $100,000 from Capital Projects to the General Fund and the budget assumptions recommended by the Financial Commission. DIRECTION FOR SEPTEMBER 8, 2003, CITY COUNCIL MEETING It was the consensus of the Council that a franchise fee ordinance go forward. NEXT WORK SESSION ON OCTOBER 20, 2003 Mr. McCauley suggested that the Work Session on October 20, 2003, be amended to 6:30 p.m. It was the consensus of the Council to have this time amended on the meeting schedule. 0 0