The Atlantic City Council received the preliminary Fiscal Year 2018 City Budget from City Administrator John Lund. Lund says the proposed budget amounts to slightly more than $12.493-million, which is a decrease over the FY 2017 budget of 14.78%, or more than $1.847-million. He said the budget is lower this year because the City won’t be borrowing so money much for Capital Projects, such as finishing the street improvements. (Click on the left side of the audio bars to listen)

(This year, the City will only have to borrow $360,000, as opposed to the millions of dollars that has been borrowed in past years.)

He says the Budget calls for a property tax increase of 1.48-percent due to actions by the Iowa Legislature.

Lund says cities in Iowa can’t rely on the Governor to protect them from future losses in tax revenue when the Legislature enacts tax reform that benefits commercial property owners and results in a loss of property tax backfill and funds from the State.

The City will see notable losses in collections from tax revenue, amounting to a combined $126,718 to the General, Employee Benefit and Debt Service Funds. On the bright side, the City’s Local Option Sales Tax (LOST) Fund posted 2.33% growth in FY 2017 over 2016, and Lund predicts an even more robust growth in FY 2018. And, the City expects to resume minimal debt in FY 2018.

The Council also heard a presentation from SWIPCO’s John McCurdy, with regard to a Comprehensive City Plan, which is required by the State, and was last adopted in 2002. The process to undertake and devise a new or updated plan will take about nine months, at a cost to the City of $19,500, the funds for which will come from the LOST Progress Fund for FY 2018. The also acted on approving an updated retainer agreement with the Otto, Lorence and Wiederstein law firm, which mentions Mark Bosworth is the Primary Attorney, but the position of City Attorney is still managed by the firm. Compensation will increase from $20,000 to $24,000.