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12-17-07 Council Special December 17, 2007 A special meeting of the Scandia City Council was held on the above date. Mayor Dennis Seefeldt called the meeting to order at 5:00 p.m. The following councilmembers were present: Michael Harnetty, Dolores Peterson, Peter Crum, Donnette Yehle and Mayor Dennis Seefeldt. Staff present: Administrator Anne Hurlburt. DISCUSSION OF REVIEW OF DRAFT 2008 BUDGET AND PROPERTY TAX LEVY Administrator Hurlburt presented the following staff recommendations for changes to expenditure budgets in the general fund to reflect recent decisions on employee pay rates and a re-examination of year-to-date expenditures in a number of categories. Department Account Description Draft Revised Net Administration & Finance Various Personal Services $160,545 $161,272 $727 Administration & Finance 322 Postage $1,800 $2,500 $700 Administration & Finance 304 Legal Services $50,000 $40,000 $10,000 Administration & Finance 351 Legal Notices Publishing $2,500 $4,000 $1,500 Public Works Various Personal Services $160,060 $163,295 $3,235 Planning & Building 312 Planning Services $56,000 $67,400 $11,400 +$7,562 The Treasurer’s estimate of year-end cash balances in all city funds was reviewed and discussed. Revised revenue and expenditure budgets for the 201 sewer project fund were reviewed. Staff will bring a draft update of the ordinance governing the 201 system, including options for allocating costs among users, to a future Council meeting. The Council discussed how changes in assessed property values may affect the city’s budget and tax levy for 2009. There will be an expectation that if values go down, taxes also will go down, which may require the city to closely examine which services are essential and where cuts can be made. Discretionary spending in 2008 should be limited and the budget closely monitored in light of possible reductions in 2009. The draft budget and levy as discussed at the December 3 Truth-in-Taxation Hearing, with the changes listed above will be recommended for approval at the December 18 meeting. The meeting adjourned at 6:07 p.m. Respectfully submitted, Anne Hurlburt City of Scandia Administrator/ Clerk