01/13/2003 Council Minutes - Laserfiche WebLink

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• • • COUNCIL MINUTES JANUARY 13, 2003 APPROVED Councilmember Carlson stated she was in agreement with Mayor Bergeson about doing a survey the last time and asked that this discussion be scheduled for the next work session to assure the referendums are not defeated. Mayor Bergeson stated the Council will have to take some action on what will be placed on the referendum. Councilmember Dahl stated there will have to be some cutting and noted Page 7, D1. She asked why something wasn't done with the percentages where it jumps to 7.61% and then goes down in 2006. Finance Director Rolek stated this was presented to the Council several times and the staff was not directed to make any cuts. City Administrator Waite Smith stated that staff is trying to identify potential cuts in case there are cuts in State aid but, at this point, those potential cuts in State aid are not yet known. Thus, staff does not know how to adjust that number. Finance Director Rolek stated that once the cuts are known, staff has the ability to make adjustments to this plan, as needed. Councilmember Reinert moved to adopt Resolution No. 03-09, Adopting the Five -Year Financial Plan for 2003-2007. Mayor Bergeson seconded the motion. Councilmember Carlson stated she will vote against the motion because increases of 7.61 % for 2004 and 7.26% for 2005 are too much when the State is experiencing a $4.56 billion deficit. She made reference to comments made by John Gunyou, former State Commissioner of Finance, who projected it will more likely be significantly greater based on what the State is already committed to spend. She stated it is not known how much the State aids will be cut and this plan depends on levy limits expiring. She stated if 2001 was included it would have been a 41.47% increase and there are things not stated in the plan that will be spent. She reviewed the cost of several City projects including "The Village" which was proposed at $14 million. Councilmember Carlson stated she realizes that would not be an expenditure for the City since it would be included in a TIF district but the City will not be collecting taxes on it either. She stated this is significant spending in the next few years, the same years the State deficit runs. She stated she respects everyone's vote but that is how she will have to vote. She stated there are two other road proposals covered by MSA funding that are not part of the general fund. She stated it is the general fund budget that she is objecting to because she needs to look at it from the experience of the people she is representing. Councilmember Carlson commented on the current state of the economy and impacts to Lino Lakes residents. She stated that under these times she cannot support 7.61% and 7.26% over 2004 and 2005 and had hoped the Council could compromise. She stated this is a democracy and she is happy with her vote and respects those of a different opinion. Councilmember Reinert asked Councilmember Carlson what level of increase, if any, she would agree to. 3