Documents I Received

Motor Fuel Tax 5-Year Budget Projections

Capital Development Fund 5-Year Budget Projections

Lease Between City and The American Legion

November 5th, 2010 Tax Levy Memo to Mayor & Council

Committee Meetings 11/8/10

Alderman Rowe & Oberkfell were not in attendance at this meeting.

Finance, Claims, Bonds, & Interest

• Financial Projections – Motor Fuel Tax Fund and Capital Development Fund

Al Hudzik and Linda Sharp did some five year projections on these funds.

With their projections I believe they said it shows the MFT Fund with a negative balance in fiscal years ’14 & ’15 when counting current revenue projections and the currently projected projects we have scheduled.

The Capital Development Fund shows a negative balance, again according to what I heard them say, in fiscal year ’13-’14 with their current projections. The Capital Development projections included a $400,000 per year transfer to the city’s general fund which may not be needed but was projected. It also shows the income of the $450,000 general obligation bond the city is working to prepare now.

I have submitted a FOIA for these two projection sheets and will post when I receive them.

In regards to the MFT Fund Al said something along the lines of “it looks like no one projected to see if these were able to be funded” in reference to projects the city has planned.

Seemed to me the outlook shown above on two major city funds painted a black enough picture to make asking for annual 4.99% increase in the next discussion easier for everyone to swallow.

•Tax Levy Discussion

It is important to note that this does not always equate to an increase in your tax bill. If the EAV of the city increases enough by new home construction and development to cover the increased amount then current residents will see no change due to the city’s request.

Alderman Ebersohl noted that the council has asked for this increase every year he had been on the council. Al Hudzik noted last year was the first in a number of years to see an actual dollar amount increase, $.76/$100 assessed value to $.78/$100 assessed value.

Alderman Hejna noted she had never voted yes on this issue and she abstained last night, while everyone else in attendance voted yes. Hejna noted that this request when coupled with what the school district and county may ask for will more than likely lead to an increase for residents.

This increase would provide the city with approximately another $92,249 if passed at the next council meeting.

It was noted that the city really doesn’t know what the other taxing bodies will be asking for in order for them to realize if an actual increase will be passed onto the residents. We’ll see how many aldermen attend the school district budget forum meeting next week Tuesday. No school officials attended this committee meeting.

License, Insurance, Claims, CEMA and Contracts

•Cable TV Franchise update/discussion

In short Al Hudzik is negotiating an agreement with Charter Communications. The major sticking point is a change from 20 to 30 houses in a one mile stretch that Charter requires before they opt to install service. Charter wants 30.

It was also noted that HTC has contacted the city regarding a franchise agreement for their upcoming IPTV service.