City Council Minutes 11-17-1997 Special (2)MINUTES
SPECIAL MEETING - MONTICELLO CITY COUNCIL
Monday, November 17, 1997 - 5 p.m.
Members Present: Bill Fair, Clint Herbst, Brian Stumpf, Roger Carlson, Bruce
Thielen
Members Absent: None
A special City Council meeting was held for the purpose of reviewing 1998 budget
revisions.
Based on direction from the first budget workshop, City Administrator Rick
Wolfsteller presented a revised budget which reduced the preliminary non -debt levy
increase from $329,348 (11%) to $99,549 (3.25%). He noted that after receiving
additional information from Wright County, it appeared that the School District
was proposing a decrease in their tax capacity rate, which would help offset the
City's increase due to the wastewater treatment plant bond issue. Overall, it was
estimated that some residents could see a 5% to 6% increase in their 1998 taxes.
Wolfsteller then summarized the proposed changes in the 1998 budget. In order to
reduce the levy, it was proposed that $229,799 of the liquor store reserve be used;
however, rather than simply indicating that expenditures be paid by liquor store
funds, Wolfsteller recommended that the City transfer the liquor funds to various
debt service funds and reduce the debt levy by an equal amount rather than
reducing the non -debt levy. This would allow the City to retain the ability to utilize
a higher levy limit next year, if needed.
In discussing the summary of changes for the 1998 budget, the Public Works
Director requested that Council consider purchasing the telephone company
property located on West County Road 39, which could be paid for with water access
fund reserves and would not affect the 1998 levy. The property consists of 1.25
acres and includes a pole barn which would be used for cold storage of water
department equipment. The price of the property was listed at $59,000, but TDS
has offered the property to the City at a price of $48,500.
It was the consensus of the City Council to authorize the Public Works Director to
place the purchase of the telephone company property on the consent agenda for the
next regular City Council meeting.
Mayor Fair noted his concern that if fund reserves were reduced too much, it may
lower the City's bond rating. In addition, non -budgeted projects may come up
during the year that the Council could complete using reserves.
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Special Council Minutes - 11/17/97
Councilmember Herbst stated that the bond rating is also judged by existing debt
which, if increased too much, could also lower the City's bond rating. He suggested
that some projects be delayed such as the Hillside Cemetery fence.
After discussion, it was the consensus of Council to reduce the Hillside Cemetery
fence budget to $10,000 for 1998 and budget the remaining $19,000 in 1999.
Discussion then focused on the $164,799 amount budgeted for phase I architectural
design fees for the community center. It was noted that the cost would more than
likely be closer to $70,000, which could be taken from liquor store reserves and
deleted from the 1998 levy.
After discussion, it was the consensus of Council to reduce the proposed non -debt
levy increase by a total of $134,000, which would amount to a 6.5% non -debt levy
increase for 1998.
There being no further business, the meeting was adjourned.
Rar6 Doty
Office Manager
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