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Special City Council Meeting Minutes Sauk Rapids


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									                                    SPECIAL MEETING
                              SAUK RAPIDS CITY COUNCIL
                         City Hall Council Chambers, 115 2nd Ave N.
                               Wednesday, September 9, 2009

6:00 PM

1. Call to Order and Pledge of Allegiance
Mayor Campbell called the meeting to order at 6:00p.m. Members present: Brad Gunderson,
Jared Gapinski, Dave Saunders, and Paul Weber. Others present: Ross Olson, City
Administrator, Perry Beise, Police Chief, Jack Kahlhamer, Finance Director, and Roger Schotl,
Public Works Director.

2. Approve Agenda
Motion: Moved by Councilperson Saunders and seconded by Councilperson Gapinski
to approve the agenda. Motion carried unanimously.

3. Mayor’s Communications

4. Regular Agenda
       A. 2009 & 2010 Budget
Jack Kahlhamer reviewed for the Council the amended 2009 b udget. The end budget number is
2.2% lower than the original budget.

Motion: Moved by Councilperson Weber and seconded by Councilperson Gapinski
to approve the amended 2009 Budget as presented. Motion carried unanimously.

Kahlhamer said that the Council will be asked to adopt the preliminary levy at the September
14th City Council meeting. He noted that at the last budget meeting the Council asked staff to
look in to how much increasing the levy by an additional $70,000 to make the total levy amount
equal $200,000 would mean to the taxpayers. Kahlhamer said that with a total levy amount of
$200,000 the tax rate would increase by 2.292%. Kahlhamer said that for a $150,000 home this
would mean an additional $34 annual tax increase, for a $175,000 home it would mean an
additional $40 annual tax increase, and a $200,000 home would be an additional $46 annual tax
increase. He noted that Tax Increment Financing (TIF) District 9 has decertified and TIF
Districts 11 and 16 will also be decertified which should increase the tax capacity. Kahlhamer
said that if directed he could place the additional $70,000 in the General 2010 budget or it could
be placed within a specific department.
Councilperson Gapinski said that he feels that the preliminary levy should be increased by the
total proposed amount to cushion the shortfalls the City is faced with. He said that he would like
to see that the proposed levy amount go in to the General 2010 budget as he feels that it is going
to be needed. Councilperson Gapinski said that he does not like to see taxes raised but he feels
that it is something that is needed here in order for the City to continue services.

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Councilperson Gunderson questioned if the levy amount proposed can be brought back down.
Kahlhamer said that the Council can bring the amount levied down at the December meeting in
which they finalize the levy. He reminded the Council that the amount can be brought down in
December but cannot be raised following next Monday’s meeting.

Mayor Campbell said that his biggest concern is that he is still afraid that the Governor could
still potentially un-allot more for 2009. He said that he would like to see the additional money
listed as a surplus for 2010 and not earmarked for a particular department. Mayor Campbell
noted that the City will need to spend the additional amount if it is not needed but it will be there
for a cushion should the City need it.

Councilperson Saunders stated that he wanted to remind residents that the $130,000 is the
amount that the City has already lost due to the un-allotments in LGA funds so the additional
$70,000 would be used to provide any extra cushion. He said that he, too, sees the Governor
possibly un-allotting additional LGA dollars for 2009.

Kahlhamer said that the County is expecting to levy the same amount that they levied in 2009.
He said that the Sauk Rapids School District is not yet sure what they are going to do in terms of
the levy.

Kahlhamer reviewed the debt service funds as well as the HRA funds for the Council.
Kahlhamer explained special levies, levy limits, and levy rules for the Council. He noted that the
Enterprise fund information was not yet available, but that the Council will hold another budget
workshop before the December City Council meeting in which the enterprise funds will be

5. Adjournment
Motion: Moved by Councilperson Gunderson and seconded by Councilperson Saunders
to adjourn the meeting. Motion carried unanimously.

Mayor Campbell adjourned the meeting at 6:20 p.m.

Respectfully Submitted,

Dana Furman
Administrative Assistant

9-9-2009                                                                                                Page 2

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