1. Call to Order. The regular work session of the Council of the City of Rogers was called to order by Mayor Bunting on Tuesday, August 27, 2013 at 5:30 p.m. at Rogers Community Center, 21201 Memorial Drive, Rogers, MN, 55374.
Council present: Jay Bunting, Don Hall, Rick Ihli, Darren Jakel, and Maureen Stanley.
Staff present: Jeff Beahen, Police Chief; Gary Buysse, Liquor Operations Manager; John Seifert, Public Works Supt.; Stacy Scharber, Assistant City Administrator; Steve Stahmer, City Administrator; Bret Weiss, City Engineer; and Lisa Wieland, Finance Director.
2. 2014 Budget Discussion
Administrator Stahmer began the discussion stating the goal of the work session is to determine the Council's comfort level with this draft proposed budget. The following items were highlighted:
• 5% increase to general fund expenditures
• 8.99% increase to total levy
• 38.291% to 41.924% tax rate
• Large decreases in commercial taxable market values
• Increase in farm values
• 5% increase in industrial values
• Slight increase of .63% in residential value
• 1.3% overall increase on tax capacity before fiscal disparities
Staff then reviewed tax levy information and stated what is proposed to be levied is under the 2014 levy limit.
Wieland reviewed all items that make up the total general levy and then reviewed the special levies that are outside the levy limit.
Staff then reviewed general fund revenue and expenditures in summary form.
Staff then reviewed the Financial Management Plan (FMP) with the updated figures including 2014 proposed budget. Staff noted that the use of fund balance to pay for a public safety building is not incorporated into the distributed draft of the FMP.
Staff stated that the LGA for 2014 is being put into a sinking fund instead of the general fund because it is not a sustainable revenue stream.
There was continued discussion on the FMP with explanation of the various sinking funds and their intended purpose.
Stahmer discussed big picture impacts, highlighting the following:
• Building permit revenues budgeted conservatively
• Paved streets no longer a carry-over use of fund balance
• Hennepin County assessor increase of 11%
• Overall increase in fuel costs; 10% alone in PD
• Increase to RAC sinking fund; $100,000
There was a discussion on RAC revenues. Hall stated staff needs to find a way to keep the RAC busy (during summer months).
Bunting commented on putting money into more facilities (second sheet of ice). Bunting stated the City should put money into something more families will use. Bunting further commented on what Maple Grove was offering their residents in 1978 when they were our population size. Also, Bunting commented on the Police Chief and Captain working weekend and night shifts.
Stahmer continued through big picture impacts including LGA and the savings that will be realized from not paying sales tax.
Wieland as part of agenda item at the hearing in December, the City needs to let residents know how the sales tax savings is realized.
Stahmer continued through budget impacts:
• CSO program – new service level
• Proposed increase in the number of paid on-call firefighters
Hall commented on the highest increase being in fire and asked staff to drill that down.
Staff pointed out the increase to Rockin' Rogers for the centennial celebration.
At this point, staff asked Council for their input on the draft proposed levy.
Jakel stated there are still some big tickets items to be reviewed (pavement management plan).
Bunting stated he would like to see the final levy around 41%.
Hall asked staff to review any line item over 15%. Stanley agreed.
Staff stated they will continue to drill down line item budgets to achieve a 41% rate.
Hall moved, Jakel seconded a motion to adjourn at 6:56 p.m. Motion carried 5-0.
Assistant City Administrator/Clerk