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HomeMy WebLinkAboutDecember 10, 1992OFFICIAL PROCEEDINGS COLUMBIA HEIGHTS CITY COUNCIL LEVY/BUDGET HEARING DECEMBER 10, 1992 The Budget/Levy Hearing was called to order at 8:00 p.m. by Mayor Murzyn. 1. ROLL CALL Nawrocki, Clerkin, Ruettimann, Peterson, Murzyn - present Staff Present: City Manager Anderson and Finance Director Elrite 2. PURPOSE OF HEARING To consider adoption of the 1993 budget and establish tax levies. Mayor Mur2yn advised those property owners in attendance that this hearing was not intended to address questions of property values. This issue is more appropriately addressed at the Board of Review. 3. PRESENTATION OF INFORMATION The City Manager explained that the budget process commences in March when he meets with individual department heads to prepare a draft of the proposed budget. This activity continues through June and July. The City Council begins its budget reviewals in July and August. The maximum levy is set in September and forwarded to Anoka County for use in the property owners' tax statements. During October and November the Council has many work sessions where the budget is reviewed. The public hearing is set for a December date. He noted this is a nine month process. In September the Council approved the required resolution which set the maximum levy at 7.5%. In November, the Council decided to decrease the levy by half to 3.5%. In December the Council was notified by the State it would be receiving additional local government aid money which resulted from a share of the sales tax fund. This sales tax fund had exceeded the State's projections and resulted in an additional $158,396 being available to the City. The Council decided to apply 100% of this additional local government aid to the 1993 real estate taxes resulting in no property tax increase for 1993 for the City's share of taxes. The City Manager reviewed the proposed budget with the use of overhead graphs. Sources of revenue and areas of expenditures were identified. LEVY/BUDGET HEARING DECEMBER 10, 1992 PAGE 2 Councilmember Nawrocki felt the vacation/sick leave liability fund should receive partial funding in 1992 rather than having its initial funds put into the 1993 budget. He also felt some of the expected cost of the Honeywell Project should be identified in this budget. He made recommendations as to how this could be done with addition of some line items. The Finance Director suggested that the budget could be reviewed and reductions made in line items where anticipated savings will be realized from the Honeywell Project. Councilmember Nawrocki felt this action would not sufficiently fund the Project and the costs should be added to the budget in a separate line item. He recalled the $53,000 projected cost for the first year of the Honeywell contract was based on eliminating one employee position and did not include the installation of four new phone lines. The position will not be eliminated. Councilmember Ruettimann felt the funds realized from the bond refunding proceeds could be used for the infrastucture fund. Councilmember Nawrocki noted that no fund has been set up for the City's liabilitiy for employee sick leave and vacation time. 4. CONSIDERATION OF RESOLUTION Resolution No. 92-41; Being A Resolution Adopting a Budget for the Year 1993 and Setting the Tax Levy Collectable for the Year 1993 Motion by Clerkin, second by Nawrocki to waive the reading of the resolution there being ample copies available for the public. Roll call: All ayes Motion by Nawrocki, second by Clerkin that Section C of the resolution have for fiscal year 1992 the amount of $100,000 added for the reserve for vacation and sick pay and in Section B the amount of $56,000 added for the Honeywell Capital Outlay. Roll call: All ayes Counci]member Nawrocki noted he has worked on a City's budget thirty times over the years. He felt-this budget did not recognize the City's ability to pay for some of the items in this budget. Noting that the City is ranked as a lower income community, the Council should be looking at costs for the future. The City Manager stated that the employees of the City made very good efforts to hold this budget down and worked diligently in its preparation. BUDGET/LEVY HEARING DECEMBER 10, 1992 PAGE 3 Mayor Murzyn felt positive strides have been made for the future and cited the examples of the Honeywell Project and the Infrastructure Fund. Councilmember Nawrocki inquired as to the disposition of the $95,000 being received from the medical clinic for the parking ramp rent. The City Manager responded that this money is being held and no action has been taken for it. The Finance Director noted formal action must be taken to establish a separate fund. Presently, it is in the Debt Service Fund and is not comingled with the Genera] Fund. Councilmember Nawrocki requested staff to keep some accounting for the Honeywell Project and stated his desire to have another police officer position added to the Po]ice Department. He also requested information regarding the activities of the police officer in Grid 8 and wants to review the results of the activity of the school liaison officer when they are available. Counci]member Clerkin extended verbal applause to the City Manager for his hand]ins of the budget process. RESOLUTION NO. 92-41 BEING A RESOLUTION ADOPTING A BUDGET FOR THE YEAR 1993 AND SETTING THE TAX LEVY COLLECTABLE FOR THE YEAR 1993 BE IT RESOLVED by the City Council of the City of Columbia Heights as follows: Section A. The budget for the City of Columbia Heights for the year 1993 is hereby approved and adopted with appropriations for each of the funds as follows: General Fund Recreation Fund Para Transit Fund State Aid Cable Television Fund Library Dare Project Capital Improvements Fund Capital Equipment Replacement Funds: General Fund Water Fund Sewer Fund Central Garage Fund Expense 6,651,564 0 163,616 53,598 120,929 384,180 4,855 0 316,]48 20,950 95O 20,000 LEVY/BUDGET HEARING DECEMBER 10, 1992 PAGE 4 Tota Total Central Garage Fund Liquor Fund Water Utility Fund Sewer Utility Fund Refuse Fund Water & Sewer Construction Funds Debt Service Fund 293,693 7,536,966 1,081,358 1,174,403 1,475,817 323,000 3,887,423 1 Expense Including Interfund Transfers 23,509,450 Section B. The estimated gross revenue to fund the the City of Columbia Heights for all funds, includin ad valorem tax levies as hereinafter set forth for 1993: budget of g general the year R e v e n u e Available General Fund Recreation Fund Para Transit Fund State Aid Cable Television Fund Library Dare Project Capital Improvements Fund Capital Equipment Replacement General Fund Water Fund Sewer Fund Central Garage Fund Central Garage Fund Liquor Fund Water Utility Fund Sewer Utility Fund Refuse Fund Water & Sewer Construction Debt Service Fund Funds: Funds 6,651,564 0 163,616 53,598 120,929 384,180 4,855 0 316,148 20,950 950 20,000 293,693 7,536,966 1,081,358 1,174,403 1,475,817 323,000 3,887,423 Revenue Including Interfund Transfers 23,509,450 Section C. The budget for the City of Columbia Heights year 1992 is hereby amended and adopted with appropr for each of the funds as follows: for the iations Genera] Fund 7,125,036 Recreation Fund 0 Para Transit Fund 142,018 State Aid 68,389 LEVY BUDGET HEARING DECEMBER 10, 1992 PAGE 5 Total Cable Television Fund 89,184 Dare Project 2,065 Capital Improvements Fund 838,692 Capital Equipment Replacement Funds: General Fund 130,015 Water Fund 128,237 Sewer Fund 22,700 Central Garage Fund 0 Infrastructure Fund 300,000 Central Garage Fund 330,899 Liquor Fund 4,829,133 Water Utility Fund 1,007,172 Sewer Utility Fund 1,177,122 Refuse Fund 1,434,014 Water & Sewer Construction Fund 633,057 Debt Service Fund 3,876,343 Expense Including Interfund Transfers 22,134,076 Section D. The following sums of money are levied for the current year, collectable in 1993, upon the taxable property in said City of Columbia Heights, for the following purposes: Genera] Fund 3,463,645 Bond & Interest 0 Total 3,463,645 . The City Clerk is hereby instructed to transmit a certified copy of this resolution to the County Auditor of Anoka County, Minnesota. Passed this 10th day of December, 1992. Offered by: Murzyn Seconded by: Peterson Roll call: All ayes Jo-Anne Student, Council Secretary ADJOURNMENT Mot ion by Ruettimann second by ,Nawrocki to adjourn/-)the hearing at 9:50 p.m. ~oll call~ ~lo~r~_a~n.[ ~ ~r~, - . . /~o-A~ne Student, Co{~ncil Secretary