09-09-2019 Council Special Budget Work Session Minutes

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CITY COUNCIL WORK SESSION APPROVED I CITY OF LINO LAKES 2 MINUTES 3 4 DATE : September 9, 2019 5 TIME STARTED : 7:05 p.m. 6 TIME ENDED 7:50 p.m. 7 MEMBERS PRESENT :Council Member Rafferty, Maher, 8 Manthey, Stoesz and Mayor Reinert 9 MEMBERS ABSENT None 10 I 1 Staff members present: City Administrator Jeff Karlson; Public Safety Director John 12 Swenson; Community Development Director Michael Grochala; Finance Director Sarah 13 Cotton; Public Services Director Rick DeGardner; City Clerk Julie Bartell 14 15 2020 Budget Consideration — City Finance Director Cotton reviewed her written report 16 that included information on preliminary property valuation figures from the County, 17 proposed levy increase and primary drivers for the increase, past council directions for the 18 2020 budget and an updated Gap Analysis based on staff s current proposed budget. 19 Noted elements of the current proposal: 20 21 - $31,500 added back to Pavement Management; 22 Additional $280,000 from Closed Bond Fund; $20,000 from current reserve (she 23 explained demands on this year's contingency); 24 Resulting in a 5.32% increase to the tax levy ($535,102) and reduction to tax rate 25 from 41.817% in 2019 to 40,115% for 2020. 26 27 Mayor Reinert asked for the year over year impact. A 2.ncrease in expenditures 28 was offered by Ms. Cotton. The mayor expressed surprise since he thought the goal 29 reduction would level the budget to no increase. He sees the recommended reduction is 30 coming forward $60,000 less than expected. Ms. Cotton said $100,000 from the Closed 31 Bond Fund was already counted — the use of cash on hand will total $580,000, 32 33 The mayor noted that the levy dropped 8%but the rate only dropped 5% so he questions 34 that. Ms. Cotton explained that expenditures have only dropped $200,000. 35 36 The mayor discussed the possibility of utilizing additional reserves. Administrator 37 Karlson noted that would require further reduction in costs. 38 39 Ms. Cotton noted the amount of the proposed budget and that it will be covered by tax 40 revenue, other revenue and use of surplus/transfer. 41 42 Council Member Manthey asked Ms. Cotton if she has any concern about increasing the 43 use of reserve/surplus. Ms. Cotton noted that this year the use of those funds is actually 44 going down and added that the use does soften some debt service coming on line and the 45 past few years revenue (valuations) has been increasing.