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LAKE ELMO CITY COUNCIL MINUTES BUDGET WORKSHOP September 12, 2002 Mayor Hunt called the meeting to order at 5:10 p.m. The following council members were in attendance: Mayor Hunt, Charles Siedow, Susan Dunn (5:20), Rose Armstrong, Steven DeLapp. The following staff members were in attendance: Abigail Grenfell (Finance Director), Charles Dillerud (City Planner/Assistant City Administrator). Mayor Hunt summarized the purpose of the meeting was to discuss the proposed levy and budget. To facilitate the discussion, budget issues would be collected and referred to the Finance Committee for discussion. The Finance Committee would report their recommendations back to the City Council at a future budget workshop. September 24, 2002 was established as the next budget workshop with the City Council, beginning at 5:15. The purpose of the workshop is to discuss the Capital Improvement Program (CIP) portion of the budget. The CIP must go to public hearing before the Planning Commission before the final adoption of the budget. Staff would like this to occur in October. A second budget workshop to discuss expenditures will be established shortly. The Finance Director shared past ad valorem increase percentages. From 1998 to 1999, the increase was 4% from actual number; from 1999 to 2000, the increase was 3% from an estimated budget value; from 2000 to 2001, the increase was 9% from an estimated budget value; from 2001 to 2002, the increase was 12% from an estimated budget value; the 2002-2003 proposed levy is an increase of 10.4%. Revenue Issues Referred to Finance Committee: 1. Breakdown on Ad Valorem taxes, specifically fiscal disparities, delinquent taxes, etc. 2. Increase in the ad valorem levy compared to the increase in expenditures. Are we spending more than the new housing starts are providing in tax revenues. 3. What is the current rates on our investment bonds. 4. Complete the enterprise fund analysis for water and sewer. Are they self- supporting ( a non -general levy issue). 5. What is the interest lost to the City for the $500,000 loan on the water project, used to lower the bond value.