City Council Minutes 08-31-1998 SpecialMINUTES
SPECIAL MEETING - MONTICELLO CITY COUNCIL
Monday, August 31, 1998 - 5 p.m.
Members Present: Bill Fair, Clint Herbst, Brian Stumpf, Roger Carlson, Bruce Thielen
Members Absent: None
A special meeting of the City Council was held for the purpose of discussing the 1999 municipal
budget and tax levy.
City Administrator Rick Wolfsteller reported that in addition to the general summaries submitted
for Council review, a copy of the new S-year capital improvement program was also included for
discussion. The 1999 budget showed substantial increases in both revenues and expenditures
over prior years. The preliminary tax levy proposed totaled $4,802,407 compared to $3,883,013
for 1998, which is the maximum allowed under state statutes and represents a 23% increase over
dollars collected far 1998. Of the 23% increase, approximately 14% is due to debt and 9% far
non-debt items.
The City Administrator explained that the main reasons far the levy increase for 1999 are 1) the
debt service levy is $566,045 higher due to additional debt service requirements for the 1994
G.O. Refunding Bond levy of $134,000, anticipated debt service of $361,925 for the first year of
the new community center, and $91,147 additional levy for the wastewater treatment plant; 2) an
expanding parks department budget due to greater emphasis being placed on park development;
and 3) an increase in police coverage.
Council discussed the tax levies to retire bonded indebtedness, and it was noted that additional
tax levies will be required in future years for additional projects not shown in the budget
summary. The City Administrator also reported that he recently received tax capacity estimates
from the County. The total market value was up $52 million; however, when considering the
legislative action to reduce commercial and industrial taxes, the City's tax capacity value drops
from $14.9 million to $13.5 million, resulting in an estimated tax capacity rate of 35.370.
Proposed capital outlay items were discussed, as well as items budgeted or committed for 1998
but not yet spent. It was noted that while most of the capital outlay items were included in the
1999 proposed levy, there was a list of library and economic development items totaling
approximately $500,000 that da not yet have a funding source. Funding of these items in 1999
would require cutting other items or utilizing reserve funds. The City Administrator noted that
one of the items listed as unfunded at this time was the Monticello Community Partners
matching contribution request of $51,750. Since the Council has provided funds on a matching
basis with other pledges or contributions and the request has risen from $35,000 to $S 1,750, it
was felt the Council may want to review the MCP's financial report showing revenues and
expenditures to date. The discussion also included whether the City should be planning at this
time to purchase industrial park land in light of the legislative tax cuts provided for commercial
and industrial businesses.
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Special Council Minutes - 8/31/98
It was suggested that Council adopt the maximum levy far the preliminary budget but have each
department review their budget and determine which items could realistically be accomplished in
one year.
AFTER DISCUSSION, A MOTION WAS MADE BY BRIAN STUMFF AND SECONDED BY
ROGER CARLSON TO SET THE PRELIMINARY 1999 BUDGET AT THE MAXIMUM AMOUNT
OF $4,802,407. Motion carried unanimously. SEE RESOLUTION 98-35.
A MOTION WAS MADE BY GLINT HERBST AND SECONDED BY ROGER CARLSON TO
DIRECT STAFF TO REVIEW THE PROPOSED 1999 BUDGET AND REDUCE THE NONDEBT
ITEMS TO EQUAL A 6% INCREASE OVER 1998'S LEVY. Motion carried unanimously.
It was the consensus of Council to set Monday, September 28, 1998, at 5:30 p.m., as the next
budget workshop.
A MOTION WAS MADE BY BRUCE THIELEN AND SECONDED BY GLINT HERBST TO
ADJOURN. Motion carried unanimously.
Cl ?/L---_ C.~~ .
Karen oty
Deputy City Clerk
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