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6.a2 Draft minutes 10-27-2020 Work Session October 27, 2020 A work session meeting of the Scandia City Council was held on the above date with modifications. Due to the health advisory issued by the State regarding the COVID-19 outbreak, to avoid public gatherings and limit social contact, the meeting was conducted over an electronic platform. All council members and staff who joined the meeting remotely could hear each other and contribute to discussions. City Administrator Cammilleri was present in the Council Chambers. Cammilleri was the presenter and displayed the meeting materials for participants to view on their remote screens. Mayor Christine Maefsky called the meeting to order at 6:03 p.m. The following were participants to the meeting: Council members Jerry Cusick, Steve Kronmiller, Chris Ness, Patti Ray and Mayor Christine Maefsky. Staff participating: City Administrator Ken Cammilleri, Fire Chief Mike Hinz, Public Works Director Adam Hawkinson, and City Treasurer Colleen Firkus. DISCUSSION OF THE CITY’S 2021 BUDGET Administrator Cammilleri used a power point presentation to recap how tax rates are calculated and offered four options for the Council’s consideration for setting the levy based on differing City Tax Rates. Option A: Proceed with approved Preliminary Levy for a 7.6% increase in tax levy over 2020 with an estimated City Tax Rate increase of 1.1% or 31.825%. Option B: Lower the Preliminary Levy by $29,000 for a 6.3% increase in tax levy over 2020 and an estimated 0% increase in the City Tax Rate (31.455%). Option C: Lower the Preliminary Levy by $55,000 for a 5.3% increase in tax levy over 2020 and an estimated City Tax Rate decrease of 1.1% (31.123%). Option D: Lower the Preliminary Levy by $103,000 for a 3.3% increase in tax levy over 2020 and an estimated City Tax Rate decrease of 3% (30.509%). Any excess funds that exceed the City’s fund balance policy minimum of at least 50% of the year’s budgetary expenses could be allocated towards road maintenance such as chip and crack sealing, or distributed to another area of need. The first three options estimate the City will end the year with an excess fund balance above the City’s policy minimum. The last option would require cuts to the 2021 budget to balance the budget and maintain the City’s fund balance policy minimum. The City is waiting for the County to release the final tax rate information. Page 7 of the City’s Budget/Levy draft shows the Estimated Impacts on Tax Bills based on the Preliminary Tax Levy and City Tax Rate of 31.825%. Council asked Cammilleri to provide this information on Option B. Ray, seconded by Kronmiller, moved to explore Option B and its impact on the Tax Levy and City Tax Rate. Motion carried 5 – 0 by roll call vote. There was no further discussion on budget line-items or capital expenditures. Cammilleri noted that the Sewer Committee will meet in December and anticipate recommending a 7% increase to October 27, 2020 Scandia City Council Page 2 of 2 the Big Marine Sewer rates and a 5% increase for Uptown Sewer rates. A final Council budget discussion will be held at the December 2nd work session prior to approving the final tax levy on December 15th. ADJOURNMENT Ness, seconded by Ray, moved to adjourn the meeting. Motion carried 5-0 by roll call vote. The meeting adjourned at 6:38 p.m. Respectfully submitted, Colleen Firkus Treasurer