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LAKE ELMO CITY COUNCIL MINUTES SEPTEMBER 11, 2012 Page 1 of 3 CITY OF LAKE ELMO CITY COUNCIL SPECIAL MEETING MINUTES SEPTEMBER 11, 2012 Mayor Johnston called the meeting to order at 6:30 P.M. PRESENT: Mayor Johnston, Council Members Emmons, and Pearson [Council Member Smith arrived at 7:01 P.M.] Also Present: City Administrator Zuleger, City Attorney Snyder, Finance Director Bendel, Planning Director Klatt, and City Clerk Thone. ITEM B: City Administrator Zuleger provided an administrative overview of the proposed 2013 Budget. A small discussion was had to remind everyone of the possible need to add or include additional funds for traffic issues. Several other points were highlighted, including the elimination of the use of the internal service funds for backfilling shortfalls, the inclusion of contingency funds, and the proposed paying down of debt to maintain a high bond rating. Mr. Zuleger noted that the staff attempted to provide a true operating cost budget. The proposed budget increases the Levy $50,342. ITEM C: GENERAL OPERATING ACCOUNT REVIEW Finance Director Bendel informed the Council the City anticipates about $3,000,000 in gross revenue which is a little less than in the past due to a reduction in grant money and other anticipated revenue reductions. There is an anticipation of increased permit revenue coming in. The 2012 budget was $2,900,000. The city came in at $2,950,000. The overage was primarily due to the transfers coming in higher because of paying down the $200,000 in debt. The 2013 figures are increased by about $100,000 mostly due to staff additions. Council Member Pearson and the mayor asked for clarification on the increase in the Fire Department budget. Finance Director Bendel explained that those funds had historically been in the CIP fund and are now in the operating budget. City Administrator Zuleger explained the policy change for the Council. ITEM D: ENTERPRISE/UTILITY ACCOUNT REVIEW Finance Director Bendel noted that the funds are cash-flowing, which is vital for future planning. At the end of 2011 the enterprise fund had $839,000. The staff is projecting $971,000 in the 2013 budget available for future infrastructure development. City Administrator Zuleger also explained that this year the staff did not allocate a significant portion of surface water revenue to fund the Finance Department. The realigned expenditures correct past misallocations. Council Member Emmons sought clarification regarding the status and funding of the Water Fund. Mr. Zuleger clarified that the Water Fund is cash-flowing for the day-to-day operations, but the looming debt service needs to be addressed.