08/18/2008 Council Minutes - Laserfiche WebLink

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1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 • 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 • APPROVED CITY OF LINO LAKES MINUTES CITY COUNCIL WORK SESSION, BUDGET REVIEW DATE TIME STARTED TIME ENDED MEMBERS PRESENT MEMBERS ABSENT : August 18, 2008 . 5:35 p.m. . 7:45 p.m. : Council members Gallup, O'Donnell, Reinert, Stoltz and Mayor Bergeson : None Staff members present: City Administrator, Gordon Heitke; Finance Director, Al Rolek; Community Development Director, Mike Grochala; Director of Public Safety, Dave Pecchia; Director of Public Services, Rick DeGardner; Director of Administration, Dan Tesch; City Clerk, Julie Bartell REVIEW OF PRELIMINARY 2009 BUDGET — Finance Director Rolek reported that the budget proposed for 2009 is very lean, due in part to the advent of levy limits and reduced revenue projections (building permits in particular). The initial challenge of a budget gap (deficit between revenue and expenditures) was met with staff recommendations for reductions including but not limited to not filling a planned public service position, keeping a line on capital outlay and maintenance, and holding the line on street maintenance and storm water budgets, as well as supplies and training. Cuts were really in all different areas of the budget. Some areas had to be increased such as energy costs. The end result is a smaller $72,000 deficit which could be approached through the personnel area or, an area that hasn't been traversed before, fund. In the area of levy limits, however, the definitive number has now come forward and it allows the city to levy an additional $75,000, an amount that would fill the budget gap. That scenario would still result in a tax rate reduction. In reviewing the preliminary budget, Mr. Rolek noted that there is approximately a 3.7% increase in tax base, some due to new construction and also to market adjustments. The assessor is generally looking at a 5% increase in valuations. When asked about areas of concern, Mr. Rolek responded that there are some unknowns such as investment return and some areas of revenue. The city's investments are conservative by law. Looking at new areas of revenue may be something the council should consider. Labor contracts for 2009 call for a 3% increase; health insurance cost increases have been built in as estimates. He mentioned that the Vadnais Lakes Area Water Management Organization (VLAWMO) is now funded by a storm water utility so that is no longer part of the levy.