City Council Minutes 12-08-2014 SpecialMINUTES
SPECIAL MEETING — MONTICELLO CITY COUNCIL
Monday, December 8, 2014 — 6:15 p.m.
North Mississippi Room, Monticello Community Center
Present: Clint Herbst, Tom Perrault, Glen Posusta, Brian Stumpf
Absent: Lloyd Hilgart,
Others: Wayne Oberg, Jeff I.-I eill, City Department Heads
1. Call to Order
Mayor Herbst called the special meeting to order at 6:17 p.m.
2. Purpose of Meeting: Final Review of the 2015 Tax Levy & Budget
Jeff O'Neill explained the purpose of the meeting and asked Wayne Oberg to go'through
his presentation on the tax levy and budget.
3. Discuss recommendation for 2015 tax levy and potential budget revisions
Wayne Oberg went through a presentation on the 2105 property tax levy and budget,
noted that it is based on the preliminary approved levy of $8,535,000. Wayne Oberg
pointed out the large tax capacity increases in 2013 and 2015 and resulting tax capacity
rate change. For 2015, the City of Monticello will have the lowest tax capacity rate in
Wright County, which is also lower than the county's tax rate. The proposed tax rate
provides a revenue source for the general fund, a portion of the MCC fund, and debt
service payments.
Wayne Oberg reviewed some changes he made in the budget since the last workshop.
Operating transfers were reduced by the amount that was originally proposed for four
additional hours for law enforcement. He moved those funds to Capital Projects fund for
unfunded projects proposed for 2015.
Wayne Oberg reviewed the proposed budget resolution that Council will consider during
the regular meeting. He explained that the resolution contains budget authorization for
appropriations, estimated revenues to support the budget, transfers for 2015, capital
equipment acquisitions, and some miscellaneous other actions.
Wayne Oberg talked about the financing of some of the proposed capital projects, noting
that some of the 2015 projects are included in bond reimbursement resolutions. He
explained that the city will have to fund expenses upfront, which may impact the ability
to do some of the projects.
Wayne Oberg discussed the capital equipment items that were approved in a previous
bond resolution in 2013. Council asked about a couple of the items and Wayne Oberg
City Council Special Meeting Minutes — December 8, 2014 Page 1
stated that Council has the option of removing items and approving an amended
resolution.
Wayne Oberg went through the miscellaneous items in Section 5 which included:
removing prior commitments and assignments in fund balances, approving an annual
subsidy of $55,000 for the senior center, approving a 3 % cost of living adjustment, and
establishing the monthly health insurance benefits for 2015.
Clint Herbst confirmed that the resolution is being brought to Council tonight for
approval. Wayne Oberg noted that if Council objects to any of the items in the
resolution, those will need to be removed if Council wants to address them separately or
is not in favor. Clint Herbst suggested that Council members indicate if there are any line
items that they want removed from the resolution. Tom Perrault asked about the cost of
living increase and wondered about step increases. Clint Herbst noted this resolution
does not affect step increases.
Glen Posusta asked why there are no items for FiberNet included with the capital
improvement plan. Wayne Oberg and Jeff O'Neill explained that is still being worked on
and expect to bring that forward during the 1St quarter of 2015. Brian Stumpf asked what
the billboard costs the city on an annual basis. Jeff O'Neill explained that there was a
deal worked out with the company for the city to use that billboard in lieu of payments to
the city for the land lease.
Wayne Oberg reminded Council members that the proposed budget is based on the
preliminary levy of $8,535,000 and encouraged the Council to approve the final levy at
that amount.
4. Adjournment
TOM PERRAULT MOVED TO ADJOURN THE SPECIAL MEETING AT 6:58 P.M.
BRIAN STUMPF SECONDED THE MOTION. MOTION CARRIED 4 -0.
Recorder: Catherine M. Shuman PMO-1
Approved: January 12, 2015
Attest:
Cit` � 7inistrator
City Council Special Meeting Minutes — December 8, 2014 Page 2