1. Call to Order. The budget workshop session of the Council of the City of Rogers was called to order by Acting Mayor Davis on Tuesday, November 10, 2009 at 5:30 p.m. at the Rogers Community Room, 21201 Memorial Drive, Rogers, MN, 55374.
Council present: Jason Grimm (arrived at 6:15), Jay Bunting, Rob Bell, and Jamie Davis.
Council excused: Steve Rauenhorst.
Staff present: Gary Buysse, Liquor Manager; Stacy Doboszenski, Assistant City Administrator/Clerk; Brad Feist, Fire Chief; Jeff Luther, Police Chief, John Seifert, Public Works Supt.; Steve Stahmer, City Administrator; and Lisa Wieland, Finance Director.
2. Preliminary 2010 Budget Overview by Administrator Stahmer and Finance
Director Wieland and Preliminary 2010 Property Tax Levy Information
Stahmer reviewed preliminary levy property tax levy information with Council, highlighting the following:
• Reduction in MVHC and revenues
• Total tax capacity decrease in values; available tax capacity down 4.5%
• A better tax rate was achieved due to differences in numbers from Hennepin County and
staff continuing to reduce the budget. 40.612% tax rate for 2010
• Spoke on meeting with Hennepin County assessors for values 2010 payable 2011.
Wieland provided update on reduced valuations for 2010 pay 2011.
• Hassan residential values will have a larger decrease of 18 to 20%
• Goal was to get net levy to taxpayers flat – still have the extra $100,000, but it has been
removed for this budget presented.
Wieland stated staff did get lower than the $100,000 reduction, but removed all use of fund balance which gets to a zero use of reserves for 2010. Reserves are trending upward, on high side of the policy and it gives more cushion moving forward, especially for 2011.
The notices on proposed tax and tax rate do include the $100,000. Reducing needs from other sources, keeping healthy fund balance and an increase transfer from liquor are part of the budget.
There was discussion on liquor transfer for 2010.
A 7% decrease in general fund levy from 2007 to present without special revenue levies.
There was discussion on the amount of debt that is levied to taxpayers – Wieland stated it is on the low side.
3. Preliminary 2010 General Fund/Rogers Activity Center (RAC) Line Item Budgets
Council reviewed departmental budgets.
• Wieland stated $35,000 is a continued carry-over of MSA money for a seal coating
project; not an additional use of fund balance. Staff is moving project costs into 2010.
• Overall revenue projections down 5.14%.
• 17 building permits issued in 2009, slightly ahead of budget
• Total general fund expenditures are down $260,000; due to budget modifications
• Breakdown of revenues by department which led to discussion on fire contracts.
• Staff discussed looking forward going out to 2012, primarily with TIF No. 1 coming off. If
levy limits were extended into 2012, the additional tax capacity from the TIF district would
be limited in terms of levy to the limit put in place – wouldn’t be able to get to those dollars.
• Discussion on becoming a member of Metro Cities – more specific on needs of cities than
the League of Minnesota Cities.
Council and staff then reviewed departmental expenditures:
• General government going down by 21% includes some shift of some costs to public
works, general engineering expenses
• Public Safety relatively flat
• Public Works – increase of 11% - paved streets
• Culture & Recreation – decrease due to senior transportation
Bunting questioned the $1200 line item for Seniors. Doboszenski explained it is used for wellness. There was a discussion on a $150 carry-over to 2010 for seniors.
Stahmer stated between staff and council working through the summer/fall to keep the tax levy flat, we have gotten to the point where the budget is tight, any additions or changes for 2010 would be dipping into the reserve fund or tax levy. Not as conservative as staff would like, more conservative on both revenues and expenses.
Stahmer asked if there are specific questions with line-item detail budgets.
Bunting questioned the recycling line item. Doboszenski and Seifert explained.
No further questions from Council. Davis will go through line-by-line to get up to speed.
Stahmer stated the public works reorganization is part of the budget; bringing back for action in January.
Grimm arrived at 6:15
Staff explained the budget is a guide to spend from and receive income; anything over $5000 will come before Council for individual approvals.
Seifert addressed a couple things from the public works side with some annexation in 2010; gravel roads and street lights. Bell questioned if there is any new technology available for street lights. Seifert responded Hennepin County is doing some studies – nothing substantial.
Bunting inquired if the costs being shared with Hassan for Fletcher Lane have been taken care of. Seifert stated the City did get reimbursed for agreed upon portion.
Wieland then discussed the focus of the next workshop being the Capital Improvement Plan. A five year plan has been recommended. The plan is attempting to look for big ticket items, and what year the council would like to direct the funds to be spent – looking for guidance from council.
Stahmer stated for budget year 2010 there were many moving parts, use of reserves, MVHC, use of staff/Hassan reimbursement, reduction in market values, financial management plan. Stahmer stated it was a complicated budget to pull together and given all the constraints, this is as good as staff could do. Stahmer gave a lot of credit to department heads finding new and cheaper ways to do things. For the most part, everyone understood the position the city was in.
Motion by Bunting, seconded by Bell, to adjourn at 6:26 p.m. Motion carried 4-0.
Assistant City Administrator/Clerk