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HomeMy WebLinkAboutSigned Minutes 09-30-13Minutes of the Arlington City Council Workshop Council Chambers 110 East Third Street September 30, 2013 Councilmembers Present: Dick Butner, Randy Tendering, Debora Nelson, Marilyn Oertle, Chris Raezer, Steve Baker and Ken Klein. Staff Present: Allen Johnson, Kristin Banfield, Paul Ellis, Jim Chase, Sheri Amundson, Maxine Jenft, Rob Putnam, Jim Kelly, Monica Schlagel, Nelson Beazley, Bruce Stedman, Debbie Strotz, Jeff Pitman, Linda Taylor, Rory Bolter, Stephanie Ambrose, Roxanne Guenzler and Steve Peiffle. Council Members Absent: None Also Known to be Present: Jesica Stickles, Sarah Arney, Mike Hopson, Jan Schutte, Bob Nelson, Sherry Christianson and Kirk Boxleitner. Mayor Tolbert called the meeting to order at 7:OOPM. Marilyn Oertle moved to approve the agenda; Chris Raezer seconded the motion, which passed with a unanimous vote. WORKSHOP ITEMS — NO ACTION WAS TAKEN 2014 Budget City Administrator Allen Johnson gave Power Point Presentation regarding 2014 Proposed Budget focusing on the following items: 2012 Audit Allen noted the City received a Management Letter during the 2012 audit regarding the City's financial condition. The City received a finding from the State Auditor's Office in 2011 for not effectively budgeting and managing its operations, resulting in a decline in its financial condition. Although the City's financial condition has improved, the auditors recommended City Council establish a formal plan to document the procedures they put in place to monitor the City's financial operations and measure improvement. 5 Year General Fund Budget Projection Presented at Retreat Allen reviewed the spreadsheet that was presented to council at the retreat. The spreadsheet showed -$728,089 difference in total operating revenue vs. total operating expenditures. 5 Year General Fund Budget Adjusted Projection The 2014 adjusted projection was reviewed by Allen and staff. The adjusted budget included the following items: • Revenues Increased sales tax based on actuals and trend Slightly adjusted Airport payment for Public Safety services Minor adjustment to other revenues based on actuals and trends Page 1 of 2 Minutes of the City of Arlington City Council Workshop September 30, 2013 • Expenditures Eliminating all contributions to Equipment Replacement Fund Reduced jail costs based on actuals Reduced benefit costs to account for 0% increase in AWC medical/dental Reduced budgets in all departments Assistant City Administrator distributed 2014 Election Schedule and General Fund 10 Year Budget Projection worksheet; discussion followed. Revenue Options Mr. Johnson and staff discussed revenue options that were discussed at the council retreat. Items discussed were: • Increase Utility Taxes • Increase Airport payment for Public Safety services • Non -Voted LTGO for equipment • Voted GO Bond for equipment • Voted Public Safety Sales Tax • Voted Increase of property tax over the 1 % limit • Voted Increase on utility taxes on natural gas, electricity, telephone After reviewing each option Mr. Johnson noted that the revenue option to adjust property taxes was the most favorable for the long term. It was the council consensus to move forward on this revenue option. Next steps will be to approve resolution to let voters decide to increase property tax, approve 2014 property tax rate and approve 2014 budget. Mayor Barb Tolbert stated staff will need to establish "Plan B" if levy lid lift fails. An adjusted budget calendar will be distributed to council and staff soon. Miscellaneous Council Items None Executive Session None The meeting was adjourned at 7:56 PM. Barbara Tolbert, Mayor Page 2 of 2