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LAKE ELMO CITY COUNCIL MINUTES NOVEMBER 29, 1994 Mayor John called the meeting to order at 7:00 p.m. in the council chambers for the purpose of discussing the proposed 1995 Budget. PRESENT: Mottaz, Conlin, John, Johnston, Johnson, Administrator Kueffner and Finance Director Banister. Mayor John opened up the public hearing at 7:05 p.m. The public hearing notice was published in the Stillwater Gazette Extra and the St. Paul Dispatch. Finance Director, Marilyn Banister, provided copies of the proposed 1995 Budget. Banister indicated the city's tax increase for the year 1995 is 2.6%. Roger Columbo, 11977 21st St. N. questioned increase in General Expenses compared to other years and in Professional Services -contractual service. Do you anticipate a 4% increase in staff salaries? Other than hiring a planner, are your planning on hiring any part-time or full-time employees in 1995? Finance Director Banister: The city is planning on hiring a full-time in-house planner because there is a need for a greater amount of planning effort coming up. A planner is the only new employee considered for 1995. The legal and engineering has stayed the same. We need maintenance items; such as, installing gas tanks, garage doors, exhaust fans required by OSHA. There was an increase in cost of utilities and workmen's comp. The only reserves added this year was in the Parks Dept. for improving the parks play equipment. Councilman Johnson explained Bud Talcott, MAC, has developed an equipment depreciation program. He picked out 7 or 8 major pieces of equipment that the city has. Based on the depreciation rates, the city should have $270,000 in reserves, now, to replace those 8 pieces of equipment. We are trying to build our reserves so we don't have to go out and borrow money. With the equipment certificate paid off, this allowed us to put a substantial amount in reserves. Len Hanson, 10824 Hudson Blvd., asked what's the city planning on doing to stop high taxes. Should put a cap on it. Are you going to permit businesses to move in? Everyone should be able to vote on Flying J proposal. Mayor John: Along the 1-94 corridor we identified the area where we encourage business to settle. We don't propose to attract them by giving them Tax Increment Financing. We would not discourage businesses to move in the I- 94 Corridor or the center of the city where it is zoned appropriately.