08/13/2003 Council Minutes - Laserfiche WebLink

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CITY COUNCIL WORK SESSION AUGUST 13, 2003 APPROVED 1 • 2 3 CITY OF LINO LAKES 4 MINUTES 5 6 DATE : August 13, 2003 7 TIME STARTED : 5:40 p.m. 8 TIME ENDED : 8:45 p.m. 9 MEMBERS PRESENT : Mayor Bergeson, Carlson, Dahl, O'Donnell 10 and Reinert 11 MEMBERS ABSENT : None 12 13 Staff members present: City Administrator, Linda Waite Smith; Director of 14 Administration, Dan Tesch; City Clerk, Ann Blair; Community Development Director, 15 Michael Grochala (part); Public Services Director, Rick DeGardner; and Public Safety 16 Director, Dave Pecchia 17 18 19 BUDGET OVERVIEW (AL ROLEK AND LINDA WAITE SMITH) 20 21 Finance Director Rolek stated the 2004 budget is proposed to be $237,000 less than the 22 2003 budget. This will be due to reductions in state aid. The City will lose $546,000 of 23 state aid, but will be allowed to levy back 60 percent of the amount lost. He also stated 24 there will be no growth factor for this budget. . 25 26 Management Team Goals — Finance Director Rolek stated the management team's goals 27 for the 2004 budget were: to maintain current service levels to residents and businesses; 28 ensure that each department has adequate resources (staff and equipment) to perform 29 basic functions; provide for replacement of worn capital equipment; and provide a 30 contingency fund in the budget for unforeseen circumstance that arise during the year. 31 32 Major Factors — Finance Director Rolek reviewed the major factors in preparing the 2004 33 proposed budget. He stated the following: the state legislature cut 100 percent of City's 34 Local Government Aid ($157,735) and Market Value Credit ($389,081); levy limits do 35 not allow for growth but do allow recovery of 60 percent of state aid cuts (the 36 proposedbudget includes that 60 percent); revenues were adjusted to reflect actual historic 37 revenue streams and anticipated future revenue considering economic conditions; all 38 departments werescrutinized and cut to allow for reduced budget in light of state aid cuts; 39 there is an allowance for salary and wage adjustments, which allows for step increases, 40 contract negotiations and market adjustments; no new personnel positions are proposed; 41 due to state aid cuts capital equipment replacement financing reverts to use of certificate 42 of indebtedness; and this proposal maintains a contingency in the budget for unforeseen 43 needs. 44 45 Budget Process / Calendar — Finance Director Rolek then reviewed the 2004 budget 46 calendar noting September 8, 2003 is the deadline for approval of the proposed 2004 47 budget and maximum tax levy which must be certified to the County Auditor by • 48 September 15. 49