11-12-96 WSCITY COUNCIL IMORK SESSION ~AINUTES
November 12,15
A City Counal work session was held on Tuesday, November 12,1996 in the Raspberry
Room. The meeting was called ~ order at 6 p.m. by Mayor Redepenning. Present were
Council members Fran Hesch, Gene Maxwell, Diane Johnson, and Karen Jensen. Also
preserrt were City stall: members Steve Mielke, Jim Parsons, Jim Kerrigan, George Magdal,
Jim Geneilie, Earl Johnson, Jim Liddy, Heather Ales, Steve Stadler, and John Schedi r
The first item o-f business was a discussion oaf the HRA funding plan for the Hopkins Center
for the Arts. City Manager Stave Mielke reviewed a spread sheet on funding for the tic in-
cnementdistricts in and around the downtown area. He explained that adequate funding ex-
isted between the economic development district and the tax irx~~ement districts to
accomplish-many of the city's goals, although he indicafied that at the conclusion ofi 15 years
the economic development account may be reduced significantly from its current f'inanclal
position. He also explained that adequate revenues would be available from tax increment
to pay for the Hopkins Center for the Arts, but that other projects in the downtown would
need the use of the economic development account unless additional steps were taken fio in-
crease t~uc increment oollectlons beyond 2001.
Councli then discussed whether or not it wished to recuperate through alternative rwvenue
souroes, the additional $356,000 injection o-f funds into the Hopkins Cenfier for the arts proj-
ec~. Several alternative souroes oaf revenue were discussed and staff was instructed ~ ana-
lyze those alternatives and prepare a report for HRA/City Councll discussion.
Councll also agreed with a staff recornmer~dation in which the formulation of an agreement
between the HRA and the clty would be desirable so as ~ spell out the roles and responsibi-
lities of the city and the HRA with regard ~ the Hopkins Center for the Arts.
The second ism o-f discussion was a 1997 budget r~riew.
City AAanager Steve Mielke provided an overview of the 1997 general fund budget and tax
levy. He discussed property tax impacts ofi the managers proposed budget, indicating that
th tax levy under the proposed budget was a 3.9 peroent increase, or $197,000. He indi-
cated that for each $50,000 reduction in the tax levy, the increase would be r~eduoed by one
Pmt
,Each of the departments represented at the meeting reviewed program and budget activity
within their general fund budgets, and also outlined proposed impacts of 5 peroent reduo-
tions, should the Councll wish ~ impose those reductions.
After review and discussion, the City Councll asked the City Manager to prepare a recom-
mended list o-f reductions in the amount of $100,000. ff enacted, this would Iower the tax
rate increase to $97,000 or 1.9 peroent.
The meeting was adjourned at 10 p.m.
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