Detroit Lakes, Minnesota

                                                                                            December 19, 2007

 

            A special meeting of the City Council was called to order in the Council Chambers of the City Administration Building at 5:00 P.M., Wednesday, December 19, 2007; all members of the Council having been duly notified of the meeting and the business to be transacted:

 

            Present:            Mayor Larry G. Buboltz; Assistant City Attorney Charles Ramstad; City Administrator Robert Louiseau; Assistant City Administrator Lynne Krieger;

Finance Officer Louis Guzek and Public Works Director Bradley Green.

                                               

                                    Aldermen:         Anderson, Aune, Brenk, Hannon, Heltemes,  Imholte, Tucker and Zeman.

 

            Absent:            Alderman Tollefson; City Attorney William Briggs; Community Development Director Larry Remmen; Public Utilities Superintendent Curt Punt; City Engineer Gary Nansen; Building Official Calvin Mayfield; Liquor Store Manager Bradley MacMaster and Fire Chief Jeffrey Swanson..

 

            Pursuant to a Truth in Taxation Hearing held on the 2008 budget and tax levy on December 11, 2007, and upon the recommendation of the Budget Committee, a resolution was introduced by Alderman Anderson, who moved its adoption, approving the final 2007 tax levy collectible in 2008, in the following amounts:

 

General Fund                            $1,697,066

Library Fund                                242,591

Airport Fund                                  28,500

Equipment/Building Fund              306,600

Development Authority Fund          97,000

Permanent Improvement Fund     149,000

                                    1999 Fire Hall Bonds                       56,000

Total                                        $2,576,757

 

The motion for the adoption of the resolution was seconded by Alderman Imholte.  After questions, a motion was made by Alderman Heltemes, seconded by Alderman Zeman to amend the motion for the adoption of the resolution that $200,000.00 from the Liquor Fund into the General Fund so the tax levy would be reduced to about 10 percent.  Aldermen Anderson and Tucker spoke in opposition of the amendment.  Aldermen Heltemes and Zeman spoke in favor of the amendment.   After Finance Officer Lou Guzek reviewed how the tax capacity rate is figured, Alderman Imholte spoke in opposition of the transfer.  Finance Officer Louis Guzek recommended that rather than a one time transfer from the Liquor Fund, expenditures should be cut.  City Administrator Robert Louiseau emphasized that if the Council wants to reduce the tax levy, the budget needs to be cut back by reducing services. Aldermen Zeman and Hannon advised the Council that they cannot support a 15% tax levy.  Alderman Tucker emphasized that the tax levy is the sum of the decisions that are made over a 12-month period.  There being no further comments, Mayor Buboltz called the question and the motion for the amendment failed.  Mayor Buboltz informed the Council that if the budget and tax levy does not pass, he can scheduled a special City Council Meeting for December 21, 2007, at 8:00 A.M.  Assistant City Attorney advised that the tax levy needs to be passed by December 27, 2007, or it would default back to the City’s 2007 tax levy. 

City Administrator Robert Louiseau advised that if that happens, the Council would need to cut the budget by $342,511.00.  After discussion on budget cuts, Mayor Buboltz called the question and the following vote was recorded:  Ayes:  Anderson, Aune, Brenk, Imholte and Tucker; Nayes:  Hannon, Heltemes and Zeman.  The Mayor declared the motion for the resolution did not carry and the tax levy was not adopted.

 

            There being no further business to conduct, by general consent, Mayor Buboltz adjourned the meeting. (5:22 P.M.)

 

                                                                                    Respectfully submitted,

 

 

                                                                                    Lynne Krieger

                                                                                    Asst. City Administrator