09/28/2009 Council Packet - Laserfiche WebLink

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• • • SPECIAL WORK SESSION DATE TIME STARTED TIME ENDED MEMBERS PRESENT MEMBERS ABSENT August 25, 2009 DRAFT CITY OF LINO LAKES MINUTES SPECIAL WORK SESSION : August 25, 2009 . 5:35 p.m. : 8:05 p.m. : Council Members Reinert, Stoltz, Gallup, O'Donnell and Mayor Bergeson : none Staffpresent: Acting City Administrator, Dan Tesch; Director of Finance, Al Rolek; Director of Public Safety, Dave Pecchia; Director of Public Services, Rick DeGardner; Director of Community Development, Michael Grochala; City Clerk, Julie Bartell Mayor Bergeson called the meeting to order at 5:35 p.m. in the Community Room at Lino Lakes City Hall. 2010 Budget Proposal - Mayor Bergeson explained that the purpose of the meeting is to discuss the budget but no action will be taken.. He noted that the council has concurred with the terms of an early retirement program. Finance Director Rolek reviewed his written report outlining a budget proposal for 2010 based on previous directives of the council. The proposal takes into consideration the ranking of alternatives by council members at the previous meeting. It includes staff reductions, an unpaid furlough mandate for employees, assumes certain fee revenue to replace tax levy dollars and begins the phasing in of a debt levy for the outstanding bond obligation. He explained that the impact of this budget would be a reduction in the city's tax capacity rate from 2009 levels; staff is recommending that the tax capacity rate be kept at the 2009 level in order to maintain future flexibility and create less onerous effects on city service levels. Mr. Rolek discussed the negative service impact of personnel reductions. Mr. Rolek reviewed the items included in the levy reduction proposal: a ten- position workforce reduction, discontinuance of the joint powers agreement with Centennial School District for field services, revenue increases (storm water utility and franchise fees), an internal loan for Legacy bond debt service, renegotiation of union contracts and a mandatory one -week furlough for all staff He reviewed the impact of the proposed reductions on the tax levy and then reviewed net tax capacity calculations. He pointed out that tax levels on residential properties of various values is far less in 2009 than it was in 1999, indicating that the city has continued to provide the same level of services at less cost through that ten year period. It was noted by a council member that the tax bill to residents will include the county and school district levy also and those rates are yet unknown. The city controls only about 35% of that property tax bill.