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LAKE ELMO CITY COUNCIL MINUTES MARCH 1, 1988 PAGE 9 C. Ordinance Amending Fee Schedule of Lake Elmo Municipal Code In January, 1988 the City Council adopted the 1985 Universal Building Code and 1987 State Building Code (Ordinance No. 8011). The fee schedule (Section 307) should have been adopted by a separate ordinance but was not. Jim McNamara explained that the City has been using the 1979 fee schedule and with the new 1985 fee schedule, which is directly out of the UBC code, would raise building permit and planning review fees 47 percent. The Council has been considering increasing permit fees and therefore made the following motion. M/S/P Moe/Armstrong - to adopt Ordinance No. 8015 adopting the Building Permit Fee Schedule as outlined in the 1985 UBC. (Motion carried 4-0). D. Formal Adoption of 1988 Budget Finance Director Marilyn Banister reported at the February 2, 1988 Council meeting she had received the tax figures from the county and the tax levy would be 13.9 mills so the budget would have to be lowered $4,400 which was taken out of the fire, maintenance, parks department's reserves. Mayor Christ was surprised to read that the state law requires cash flow reserves of one-half the cities budget levy and local government aid received. Banister responded that this has been put in the audit. In regard to the new fire true],, Banister stated the money had been set aside to buy this. When she started the budget it looked to her to try to even things out and the only way to get extra money was to get an equipment certificate. Then they wouldn't have depleted the fire department's reserves. Mayor Christ asked if we could levy to build up these reserves, and Marilyn answered you could not levy for this. Reserve funds can only be put in from the tax levy. Mayor Christ felt in order to maintain the mill rate, the Council better watch what they spend. They have spent a lot of money upgrading the Maintenance Dept. He would only let the mill rate go up in order to fight the landfill. Marilyn explained you cannot levy for special projects. In regard to $75,000 Park Bond due in 1992, Banister explained that the problem at the end of 1992 we won't be able to levy an additional $75,000. The taxpayer will be paying that much less in taxes. Mayor Christ felt it was significant that 10 percent of our annual budget was used for park acquisition. Councilwoman Armstrong brought up the word "Rent" which should be deleted under Building, Rent and Expense since there is no rental for 1988. Also suggested was to look for a light for the flag outside andfor the City signs.