05/21/2012 Council Packet - Laserfiche WebLink

Home Search

• • • WORK SESSION STAFF REPORT Date: May 21, 2012 To: City Council From: Jeff Karlson, City Administrator Re: Budget Priorities Background The primary objectives for Monday night's meeting are to discuss the budget impacts for 2013 and to determine the process Council and staff needs to undertake in order to establish budget priorities. This will involve taking a serious look at the City's operations and service levels and creating realistic expectations. The goal will be to get everyone on the same page. Staff will present a brief history of what has transpired over the past three years related to the tax levy and budget cuts, which resulted in the elimination of 13 FTE positions. The recent resignation of the Community Relations Coordinator reduces that number to 13.75 positions. Next, we will talk about what staff sees as its priorities and what the Council has communicated as priorities. Item #4 of the agenda shows what staff has identified as the major budget considerations as we begin preparation of the 2013 budget. Each particular would either impact the tax levy or the City's reserve fund balance. Al Rolek will provide a summary of the current fund balance. The Council elected to use $100,000 of fund reserves to close a budget gap in 2012 and redirected an additional $150,000 out of fund reserves for street reconstruction. The Council has recently indicated that it would like to use reserves funds in the near future for the recreation complex and street reconstruction. Lastly, management staff believes it will be necessary for the Council to establish budget priorities to help guide the budget process. Tough choices will need to be made regarding how city services are delivered in this current economic environment. The Council will need to focus on which City services are the most important to Lino Lakes residents and who gets hurt the most if there are cuts.