02 City Council Min 07-12-04 - Laserfiche WebLink

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Regular City Council Meeting July 12„ 2004 Page 23 next week and would be ready for discussion at the next meeting. Mayor Fendley said that item would be carried forward. Mayor Fendley said the next item was discussion and consideration of possible direction to City staff for the proposed Fiscal Year 2004-2005 City Budget. Terry Townsend, Interim City manager, said he would meet with department heads and then would present that new budget with the 5% budget cuts at the meeting on July 27tn Mr Townsend asked what the reason was for the budget cuts. Mayor Pro-Tem Guest cited tax reduction as the main reason. He said that since 1993, there has been 33% increase in ad valorem tax and also had an almost 50% increase in property appraisals. He also mentioned that in the past ten years, the City has added fifty-something employees. Councilman Wilson said that the City is just now starting to pay for the bonds that other Councils have put in to place.He related that the City had been keeping ahead by raising taxes and raising valuations, but there has to be an end. He said the Bond payment had gone up from $271,000.00 to $1.3 million. Councilman Guest wanted to know why. Finance Director Anderson said a large portion of that is relocation of the Police Department for $6,060,000.00. He also said the library was expanded in 1993. Councilman Guest said he felt like when Certificate of Obligations were done instead of a Bond issue, the citizens were not given the input of whether they wanted to go into this debt or not. Finance Director Anderson said that the Council at that time was encouraged to do a bond election of the new policy facility but elected to do a Certificate of Obligation instead. City Attorney Schenk concurred.