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f I Request for Council Action Continued September 4,1997Proposed 1998 Budget and Tax Levy - Resolutions <br />1. Fire/hazardous material inspection. This could most cost effectively be <br />accomplished by contracting with another city for this service. The estimated cost <br />is $5-7,000 per year. <br />2. Merit pav program. The Council supports the development of a merit pay system to <br />enable o; ‘"Standing performance to be rewarded. The general plan for this program <br />is to proviuv -m amount of merit pay dollars that could be paid out as a performance <br />bonus to rc -ognize, reward and encourage outstanding performance. <br />3. Comprehensive Plan update. The city is mandated to update its Comprehensive Plan <br />by the end of 1998. The cost of this effort is uncertain at this point. Staff has applied <br />for a grant through the Metropolitan Council which could cover a significant portion <br />of the city's costs. <br />4. Funding for park land acquisition and park development. There has been some <br />discussion that the city's park dedication fee revenue will not be sufficient to meet <br />the needs of the city regarding parkland acquisition and park development. The <br />Council may want to supplement the park dedication fee revenue by initiating a tax <br />levy for park land acquisition and park development. It is very unclear at this point <br />what the city's future expenditures for park land acquisition and park development <br />might be. <br />Lew Limits <br />The 1997 Legislature imposed levy limits on cities for 1998 and 1999. The levy limit is tied to the <br />implicit price deflator and household growth. The city's levy limit for the 1998 budget is <br />$2,265,600. This is an increase of $103,970 or 4.81%. The proposed tax levy is well under this levy <br />limit amount. <br />Funding for Major Infrastructure Rehabilitation/Construction <br />The 1998 budget follows the direction set by recent budgets toward putting the city into a better <br />position to address both current and long term needs for infrastructure rehabilitation/construction. <br />The three main areas of infrastructure rehabilitation/construction are as follows: <br />1. Sewer and water infrastructure <br />2. Street infrastructure <br />3. Storm drainage infrastructure