Mayor Memo

Wow, what a roller coaster year it has been in almost every way.  The stock market has been fluctuating wildly, gas prices soared and now have retreated much further than anyone has anticipated grain prices have seen record highs and have also retreated lower.  Everything seems to be on a never ending roller coaster.  It makes it tough on everyone to try to formulate a budget – whether it’s your family, your business and even the City.

In December 2007 the City Council adopted the 2008 budget.  At that time it was made clear that going into 2009 we as a City needed to find ways to tighten up our costs.  Like every business though getting a handle on what our energy, equipment and supply costs for 2009 will be has been difficult.  However, the Council’s Finance Committee, our City Administrator and our City Finance Director have been reviewing the submitted department budgets and along with each Department Head have been looking and finding ways to keep the budget in line. 

In fact, the stated goal for our 2009 General Fund budget (the everyday expense and revenue budget – Administration, Parks, Streets, Library, Police, Planning & Zoning, etc, etc) was to be at or below our 2008 numbers.  In December, the Finance Committee will bring to the whole council a 2009 General Fund budget that will in fact be below the 2008 budget.  In an uncertain time it is imperative that we as City find ways, like everyone else, to make due in our General Fund budgets with what we have.  The key to this as well is the fact that, like most businesses, our wages and benefit costs continue to increase as well so keeping our overall general fund budget to below 2008 numbers is a strong step for us. 

The overall Levy including existing and new debt service will increase about 4% for 2009.  The overall increase is due mostly to the debt service needed for the reconstruction project on West Main and 6^th Ave NW.  This overall increase is just under one half of what was initially proposed back in September (and what you will see in your Truth-in-Taxation statements).  Understand that those statements are based upon the September information which showed a preliminary levy increase of 8.004%.  The actual increase, again, will be slightly less than half of the initial estimate. 

As we go through 2009 my expectation is that we as a City will continue to look for ways to be more cost efficient.  As the global economic crisis is expected to continue through 2009 finding ways as a City to cut costs or find more efficient means to provide services will be imperative. 

As always, if you have any questions or concerns, please call, email or stop me around town. 

In your service,

Tim Tjosaas, Mayor

mayor@cityofkasson.com