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12-16-2008 WSDecember 16, 2008 Page 1 MINUTES OF THE CITY COUNCIL WORK SESSION AT CONCLUSION OF THE REGULAR CITY COUNCIL MEETING Tuesday, December 16, 2008 Mayor Maxwell called the meeting to order at 8:35 pm. Present were Mayor Maxwell and Council members Halverson, Brausen, Youakim, Rowan, Public Works Director Steve Stadler and City Manager Rick Getschow 2009 Street and Utilities Improvements: Public Works Director Stadler discussed the neighborhood meeting for the street improvement project that will occur on Thursday, December 18th. The Council will consider the feasibility report and potentially order a public hearing on the project in January of 2009. State Aid Cuts: City Manager Getschow stated that the City could potentially lose their second half LGA payment of $25,000 towards the Center for the Arts and the second half payment of Market Value Homestead Credit bringing the total potential state aid unallotment to $148,000. Getschow stated that the market value homestead credit is actually part of a state program where the state buys down a portion of the residential property taxes and provides the refund to the City. The state is discussing withholding that refund to the city whereby the city is basically providing the homestead credit. Getschow also stated that loss can be absorbed within the 2008 budget and the general fund reserve without any significant impact. There will be discussions in 2009 if there is a permanent loss to the small amount of LGA and the Market Value Homestead Credit in future years. Other Council member Youakim asked if group homes have to apply for a rental license with the City. City Manager Getschow will check on this and follow up. • Mayor Maxwell asked for a bit more information on the market value homestead credit cuts in respect to the budget and wanted to make sure information is provided to the public in how we are handling the potential loss of funding. Mayor Maxwell also stated that while the 2009 budget was a positive one we will have to spend much time in 2009 preparing for the future budgets and work with the entire city staff and community in dealing with the potential difficult economic times ahead. City Manager Getschow handed out a spreadsheet that showed a city garbage and recycling rates as compared to private vendors across the metro. The numbers showed that the city still compares favorably against the other communities even when the 2009 rate increases are taken in to effect. December 16, 2008 Page 2 With no further business, a motion was made by Brausen, seconded by Y"ouakim to adjourn the meeting. The motion passed unanimously. The meeting was adjourned at 9:30 pm. Rick Getschow, Secretary