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CITY COUNCIL WORK SESSION JULY 2, 2002 DATE TIME STARTED TIME ENDED MEMBERS PRESENT MEMBERS ABSENT CITY OF LINO LAKES MINUTES : July 2, 2002 . 5:40 p.m. . 10:15 p.m. : Council Member Dahl, Carlson, Reinert (6:05 p.m.) and Mayor Bergeson : O'Donnell Staff members present: City Administrator, Linda Waite Smi' ommunity Development Director, Michael Grochala; City Engineer, Ji 'ski; City Planner, Jeff Smyser (part); Finance Director, Al Rolek (part); C ' • ' e, Dave Pecchia (part); and City Clerk, Ann Blair (part) PRESENT REVISED PROPOSAL FOR FIVE-YEAR FINANCIAL PLAN, AL ROLEK Finance Director Rolek distributed a memo r diri the Five -Year Plan adjustments noting the assumptions and factors used i ®rep the Plan that was presented. He stated that following the discussion at - 1. ork session, the Council directed staff to rework the draft Plan to reflect an ov . fir- se over the term of the plan to 30%-35%. Per this directive, the draft Plan for 6 has been adjusted to an overall increase over the five year period of 34.9' ¢ o - o accomplish this rate of increase all new proposed staff positions, with- ce tion • f those added in 2002, had to be eliminated from the Plan. In additio the re al of projected salaries and benefits, capital outlay, training, etc., for so el, other areas of the Plan were affected by this change. These areas inclu. anticipated revenues, such as COPS grants, that were reduced, and expenditures, s h as contractual engineering, that had to be reinstated as a result of adjusting the perso el. An amendment was also made to the Plan in the area of employee medical insurance costs. Expenditures were increased in this area over the term to reflect higher costs that have come to light since the draft was originally prepared. After reworking the Plan, the City tax rate in the Plan is scheduled to be reduced from 53.113% in 2002 to 41.041% in 2006. While Council's directive has been met in reducing the overall increase over the five year term to less than 35%, it is staff's opinion that the objective of the Plan has not been met. The elimination of all future staff additions in the wake of anticipated growth will not allow for the continuation of service delivery to taxpayers at the current levels. As new homes and businesses are built, roads, water, sewer and other infrastructure added, additional parks improved, among other needs, it will not be possible to maintain these growing systems at current levels with current staff. The amended Plan implies that 1