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Home My WebLink About09/25/1989 Council Minutes2 9 0 COUNCIL BUDGET MEETING SEPTEMBER 25, 1989 The budget work session of the Lino Lakes City Council was called to order by Mayor Benson at 5:45 P.M., Monday September 25, 1989. Council members present: Mayor Benson, Neal, Reinert, Bohjanen, Bisel. City Administrator Randy Schumacher, Public Works Director Don Volk, Police Chief Dean Campbell, Accountant Paula Romockey, and Administrative Assistant Daniel Tesch were also present. Mayor Benson began the session be explaining how difficult the budgetary process would be this year due to the state's inability to pass any 1989 tax legislation. At this point we have no idea what our revenues will be, although it is felt that they may be somewhat less than last year. At this point Mayor Benson turned the floor over to Mr. Schumacher to explain he Truth in Taxation (TT) legislation as it stands today. Mr. Schumacher informed the Council of this legislations origins in the State of Florida. When the concept for this idea was transplanted in Minnesota however, many of legislators did not grasp the many differences in the makeup of the two states. This is why we are in the position we are today. Mr. Schumacher proceeded to explain the process of Truth in Taxation, and how its main objective was to include the people in the budgetary process with a series of notices and public hearings. Our biggest problem lies in the fact that the governor vetoed the Truth in Taxation legislation at the end of the session, and nothing has been put forth yet to take its place. Questions have arisen as to what procedures and time tables we need to follow. The following was suggested by the League of Minnesota Cities: October 21, 1989 New Local Government Aid & Levy Limits November 15, 1989 Preliminary Certification to the County December __, 1989 Public Hearing December 28, 1989 Final Certification to the County Mr. Sch..macher stat.d that we have lost no time or money, ,>r held needless hearing. The League of MN Cities has suggested that we follow the dates as set forth under the 1988 tax law as nothing for 1989 has been formalized yet. Therefore, we should have an estimated preliminary levy to the County by October 1 of this year. Mr. Reinert questioned Mr. Schumacher as to what affect the reassessment of the city, as well as natural growth has done to our revenue figures. Mr. Schumacher said he would contact the county and estimate a figure. Mayor Benson was of the opinion that the state is playing a 1 1 COUNCIL BUDGET MEETING SEPTEMBER 25, 1989 game, and will wait to see what cities request before they estimate a revenue figure. As cities are naturally conservative he guessed there would be cutbacks by the state. Mr. Schumacher stated that a provision of law that legislators are presently working on is the elimination of levy limits. What he feels will happen is that the state will reduce our Local Government Aid (LGA) and tell us to make up the difference by raising taxes allowing cities to take the heat. Mayor Benson felt that a coalition of counties, school districts and cities should go to the state and inform them of our concern. Mr. Reinert felt that the League is not as powerful or influential as it should be. Mr. Schumacher replied that the League is well organized and presents our collective arguments well, but that legislators seldom listen. Mr. Bohjanen added that school districts would probably want to join us in this matter. Mr. Schumacher stated that the school districts stand to gain up to 100 million dollars, and probably would not want to join us. He also added that we presently only get about 22 cents of each tax dollar. Mr. Schumacher read an article that said that Mr. Tripplet at the State of Minnesota, when asked if anyone at the state understood the tax /budget law, replied - probably no one. Mayor Benson asked Mr. Schumacher if he felt we should plan for the possible elimination of state aid all together. Mr. Schumacher replied that he felt aid would be reduced for the next two years, then frozen. Mr. Schumacher and Mayor Benson speculated that given our last years state aid figure of $344,000.00 we can expect roughly $300,000.00 next year, and frozen the next year at around $200,000.00. Mr. Bisel felt that the savings that the school districts would be realizing should be passed on to the cities. Mayor Benson replied that the school districts are so strapped for funds that that would probably not happen. Mr. Sch__lEacher stat _! that the council should not feel as all cities are in the same boat. Mr. Benson suggested the Council take Mr. Schumacher's recommendations and begin complying with the 1988 law. Mr. Reinert stated that it was unfortunate that residents come to city hall when taxes rise when the city only receives 22% of each tax dollar compared with the school districts' 56 %. Mr. Schumacher explained that the documents the council had before them were revenue projections (based on the 1988 law) and proposed department expenditures. It was agreed not to dwell on the revenue portion as it was subject to too much change. Mr. Schumacher stated that a question the council 291 COUNCIL BUDGET MEETING SEPTEMBER 25, 1989 will have to address is how to fund expensive on going projects such as roads. Mr. Reinert raised the question of garbage collection and hauling. He suggested adding garbage to a our city services. This would eliminate redundancies in hauling routes. Mayor Benson and Mr. Bisel agreed. As the council reviewed their information, Mr. Schumacher added that major changes in a department's budget would be footnoted. Mayor Benson asked Mr. Schumacher if the City would need to purchase any equipment for computerized elections. Mr. Schumacher replied that was not mandatory. Mr. Schumacher pointed out that the Assessor's bill has increased due to the increase of parcels that need to be assessed. It was the concensus of the council that it was a wise decision to contract this service through the county. Under Consultants, Mr. Schumacher stated that he was being conservative here, and would like this to be increased. Mayor Benson asked the council what they thought of the budget for economic development and planning budgets. Mr. Bisel said that we need to be proactive rather than reactive. Mayor Benson agreed, and added that we need to get services lined up. Mr. Bohjanen stated that he would like to see more things done in the area of marketing and advertising. Mr. Neal said that the EDC has done a great job over the past year but that we need to get the word out that we have what companies are looking for. Mr. Bisel stated that the EDC was a new organization, and would really be taking off this year. The council discussed the new promotional video, and stated that minor modification might be in order. Mr. Reinert added, that Lino Lakes needs to become aggressive. We need to work on our image, improve our entrances into the city, and let businesses know that we have many things that other cities don't have. Mayor Benson agreed, and said that we may have to spend some money in this area, working on our entrances, image, and other beautification issues. Mr. Reinert stated that our image is improving, but the council agreed that some work remains on this issue. Mr. Schumacher said that TIF could be used tt, assist in t'-.is natter. He also added that we now have a housing study, water and sewer plan, but dollars are still necessary if we are going to compete with the rest of the metro. Under the city attorney, Mr. Bisel asked if we were able to recoup any of these costs? Mr. Schumacher said yes, under municipal fines. Mr. Schumacher requested the council go through the department requests and determine which items we can and cannot afford. He urged all members to contact him with questions. 1 1 1 COUNCIL BUDGET MEETING SEPTEMBER 25, 1989 As this meeting was running out of time, Mr. Schumacher quickly reviewed major capital matters of the police, fire and civil defense departments. Mayor Benson asked Mr. Schumacher for a final wrap up. It was agreed that the council would submit a preliminary figure to the county prior to October 1. This would be accomplished at a second meeting on Thursday the 28th at 4:00 P.M. Mayor Benson closed the meeting at 7:05 P.M. These minutes were consider and approved at a regular Council meeting held on October 9, 1989. Mari yn G, +nderson, Clerk- Treasurer 293