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CITY COUNCIL WORK SESSION <br />DRAFT <br /> 1 <br />CITY OF LINO LAKES 1 <br />MINUTES 2 <br /> 3 <br />DATE : September 9, 2019 4 <br />TIME STARTED : 7:05 p.m. 5 <br />TIME ENDED : 7:50 p.m. 6 <br />MEMBERS PRESENT : Council Member Rafferty, Maher, 7 <br /> Manthey, Stoesz and Mayor Reinert 8 <br />MEMBERS ABSENT : None 9 <br /> 10 <br />Staff members present: City Administrator Jeff Karlson; Public Safety Director John 11 <br />Swenson; Community Development Director Michael Grochala; Finance Director Sarah 12 <br />Cotton; Public Services Director Rick DeGardner; City Clerk Julie Bartell 13 <br /> 14 <br />2020 Budget Consideration – City Finance Director Cotton reviewed her written report 15 <br />that included information on preliminary property valuation figures from the County, 16 <br />proposed levy increase and primary drivers for the increase, past council directions for the 17 <br />2020 budget and an updated Gap Analysis based on staff’s current proposed budget. 18 <br />Noted elements of the current proposal: 19 <br /> 20 <br />- $31,500 added back to Pavement Management; 21 <br />- Additional $280,000 from Closed Bond Fund; $20,000 from current reserve (she 22 <br />explained demands on this year’s contingency); 23 <br />- Resulting in a 5.32% increase to the tax levy ($535,102) and reduction to tax rate 24 <br />from 41.817% in 2019 to 40.115% for 2020. 25 <br /> 26 <br />Mayor Reinert asked for the year over year impact. A 2.92 % increase in expenditures 27 <br />was offered by Ms. Cotton. The mayor expressed surprise since he thought the goal 28 <br />reduction would level the budget to no increase. He sees the recommended reduction is 29 <br />coming forward $60,000 less than expected. Ms. Cotton said $100,000 from the Closed 30 <br />Bond Fund was already counted – the use of cash on hand will total $580,000. 31 <br /> 32 <br />The mayor noted that the levy dropped 8% but the rate only dropped 5% so he questions 33 <br />that. Ms. Cotton explained that expenditures have only dropped $200,000. 34 <br /> 35 <br />The mayor discussed the possibility of utilizing additional reserves. Administrator 36 <br />Karlson noted that would require further reduction in costs. 37 <br /> 38 <br />Ms. Cotton noted the amount of the proposed budget and that it will be covered by tax 39 <br />revenue, other revenue and use of surplus/transfer. 40 <br /> 41 <br />Council Member Manthey asked Ms. Cotton if she has any concern about increasing the 42 <br />use of reserve/surplus. Ms. Cotton noted that this year the use of those funds is actually 43 <br />going down and added that the use does soften some debt service coming on line and the 44 <br />past few years revenue (valuations) has been increasing. 45