HomeMy WebLinkAbout02-19-91 Special CCMLAKE ELMO CITY COUNCIL MINUTES
SPECIAL MEETING
FEBRUARY 19, 1991
Mayor Johnson called the special meeting to order at 4:38 p.m, in the
City Council chambers. Present: Player Johnson, Hunt, Dick Johnson,
Mottaz, Williams, Administrator Kueffner and Finance Director
Banister.
Mayor Johnson called this special meeting to discuss a potential
budget crisis and asked that the City consider both the immediate and
the long term implications of the deficit. Johnson requested we join
other cities in lobbying at the state capitol for relief from the
budget crisis.
Mayor Johnson reported, "The League of Cities has been advising us
since early January that there were proposals afoot by the new
governor addressing the state governments deficit of $197 million in
the current fiscal year and $1.2 billion more in 1992 and 1993. The
Governor has proposed that cities take a hit this year to the tune of
reducing local government aid 2.2 percent. That proposal has since
been passed. That means $17,000 to the City in the current fiscal
year. We could be looking at cuts over the next two years that could
range up to $170,000. We will be losing around $32.,000 from our
Section 32 revenue base."
Finance Director Banister explained that Lake Elmo depends heavily on
property taxes for this revenue. The state will increase its own
revenue by withholding more of the property taxes it collects for
cities. We can do it for 1991, but we'll have to make up for it in
1992.
Mayor Johnson indicated the $17,000 cut was something the City could
handle in the current budget assuming nothing goes wrong. However, he
saw a potential for some disaster such as one of our businesses
leaving town or another one going out of business. They provide
people for our volunteer fire department and we may then need to
contract for fire protection.
Councilmember Dick Johnson couldn't believe that the state legislature
was going to hit the city with these cuts without some change in the
levy limits. He asked the Finance Director for monthly reports on
expenses by the consultants.
M/S/P Hunt/Williams - to direct the budget committee to meet the month
of March and report back in April. (Motion carried. 5-0).
M/S/P Williams/Hunt - to amend the motion to include charging the
budget committee with coming up with a three year plan to deal with
the proposed budget problems. (Motion carried 5-0).
M/S/P Hunt Williams - to adjourn the special city council meeting at
5:30 p.m. (Motion carried 5-0).
NOTICE OF SPECIAL CITY COUNCIL MEETING
THE MAYOR HAS CALLED A SPECIAL MEETING TO DISCUSS
A POTENTIAL BUDGET CRISIS
TUESDAY, FEBRUARY 19, 1991
4:30 P.M.
CITY HALL