11/03/2008 Council Packet - Laserfiche WebLink

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• • WS -5 WORK SESSION MEMORANDUM To: Mayor and Council Members From: Al Rolek Date: November 3, 2008 Re: 2009 -2013 5 -year Financial Plan - Draft CC: Gordon Heitke Attached is a draft summary of the 2009 -2013 5 -year Financial Plan for discussion at the work session meeting on November 3. The plan was developed following the process approved by the City Council in the resolution adopted last December, with the underlying values of meeting our obligations to the citizens of Lino Lakes and maintaining service levels. Due to the state of the economy during this cycle and the constraints placed on local government by the state legislature, the plan being presented this year remains unbalanced between revenues and expenditures. The economic situation we are encountering this year has not only affected financial planning for Lino Lakes but has presented problems to all governmental entities as well as private businesses. These are uncharted times, and we are not alone in struggling through them. The difficulty encountered with limits on local levies, holding the line on tax rates, dealing with rising costs, analyzing future needs, all while dealing with a contracting to slow growing tax base has been a great challenge. Staff is seeking direction from the City Council in setting priorities on city services in resolving the funding gap. The draft plan is a compilation of projected needs over the coming five -year period submitted by the department directors for their respective areas of responsibility. It anticipates an overall increase in expenditures of 38.11% for the five -year period. In