03-08-10 Council Agenda - Laserfiche WebLink

Home Browse Search

MAYOR t Bill Blesener s s ~ COUNCIL ^z°yr~r Rick Montour ~~~j''n//Q~~, John Keis ~G~ : ~i't~ ~°anaGGa Michael McGraw Shelly Boss 515 Little Canada Road, Little Canada, MN 55117-1600 ADMINISTRATOR (651) 766-4029 /FAX: (651) 766-4048 Joel R. I-Janson www. ci.little-canada.mn.us MEMORANDUM TO: Mayor Blesener & Members of the City Council FROM: Joel Hanson, City Administrator Shelly Rueckert, Finance Director DATE: March 5, 2010 RE: Process for Addressing State Imposed Budget Reductions Staff has had discussions with each Council Member on an individual basis to review the impact of State reductions in Local Government Aid (LGA) and Market Value Homestead Credit (MVHC). We have also discussed the possible linking of future fire truck funding with this issue to provide a more comprehensive approach to future financial planning. A quick summary of the situation we are now dealing beyond the reductions already absorbed into the current year's budget is as follows: Governor's Proposed Unallotments: LGA $196,537 MVHC $47,047 Subtotal $243,584 Further MVHC Cut $57,580 Subtotal $301,164 Fire Truck Funding $111,148 Potential Total Impact . 41$_ 2 3t~ The Council will need to decide how they want to approach this issue. As has been discussed, staff believes we are dealing with at least athree-year issue (2010 - 2012). We are also concerned that the problem could extend longer than that depending on how the state chooses to address its on-going budget problems coupled with a slow economy. Staff is preparing a decision matrix to help guide us through the process at Monday's workshop. The goal is this matrix is to help us arrive evaluate potential components of a solution to enable us to determine what additional cuts will be necessary.