Finance Minutes 8/10/2010

Minutes of the Finance Committee meeting held on Tuesday, August 10th, 2010 at city hall pursuant to notice duly given.

1. Meeting called to order at 5:15 p.m. by Chairperson Jack Maas.
2. Roll call: Jack Maas, Dick Doeren, Ed Young and Roger Reed. Absent: Pete Nelson.
Also present: Mayor Fulton, Atty. Calvert and Linda Belongia Administrator and as recording secretary.
3. Moved by Doeren seconded by Young to approve of the agenda as presented.
Motion carried upon verbal voice vote. 4 ayes
4. Correspondence/public input: Mayor Fulton stated he received a letter today from Pete Nelson resigning effective 8/10/2010 because of too many conflicts with his family and his business.
5. Discussion/recommendation on Tax Exempt properties. Maas stated our city attorney has given us a letter on his opinion; Atty. Calvert briefed the committee on Municipal Services to Tax-exempt entities; Can tax these type of properties…is a wide range from schools to fraternal organizations and government entities; are 20-30 different types of tax for exempt entities that we are able to charge for services…this is happening more and more; ultimately the hard part is deciding how we are going to do this…some tax exempt entities we have agreement with, some by the letter received from NEWCAP are not thrilled to participate; will not be easy to differentiate; residential homes that are tax exempt are getting some benefit as a home next door that is paying tax; services need to be determined, review the listing of tax exempt properties…and the benefits they are getting; Atty. Calvert stated for example the public works budget, go through and determine services they are receiving; letter could then be sent to these entities for the services we provide that we want to charge for…again stressed this will not be easy; Belongia asked to check with the League to see if they have anything on other communities charging for services; Mayor stated nobody wants to be first or last…let’s see what other communities are doing…want to be very cautious; Maas stated we can table for more info; Mayor agreed, let’s see what’s out there; Atty. Calvert stated NEWCAP is good for the community but they also provide low income housing which hurts our tax base;
Moved by Reed seconded by Doeren to table tax exempt properties to the September Finance meeting for more information.
Motion carried upon verbal voice vote. 4 ayes
6. Discussion on draft Debt Management policy; Maas stated this is being strongly recommended by our financial adviser;
Moved by Doeren seconded by Reed to recommend to Council approval of the Debt Management Policy.
Motion carried upon verbal voice vote. 4 ayes

7. Discussion on 2011 budgets. Maas stated Mayor will get an executive memo out to the departments; 0% increase other than increase in wages/salaries for non union employees as the union employee’s are receiving per their contracts; Maas stated in past the departments have held done their budgets very well…but every year the cost of doing business continues to go up; Mayor stated he feels a 0% increase and if any projects or expenditures are needed to , the budget request should include documentation;

Belongia to put 2011 budgets on the 9/7/2010 Finance agenda.

8. Moved by Reed seconded by Doeren to adjourn. M/C
Meeting adjourned at 5:43 p.m.
Minute submitted by
Linda M. Belongia
Administrator