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1� City Council Study Session Minutes • August 14, 2001 Page 4 1 Councilmember Horst noted he was not in favor of spending all of the City's reserve 2 funding on this one project as the City may need these funds in the near future. He 3 indicated the project should be pared down and still allow for a nice facility. 4 Councilmember Thuesen thanked Councilmember Horst for his comments, but stated 5 numerous compromises have been made on this site and stated he was pleased with the 6 results at this time. 7 Motion by Sparks to approve Resolution 01-071 awarding the bid for the redevelopment 8 of Central Park to Veit& Company in the amount of$1,689,862 as presented. 9 4-1 (Horst opposed) Motion carried 10 VI. REVIEW ITEMS 11 A. Review 2002 Budget and Tax Lew. 12 Mayor Cavanaugh introduced the 2002 Budget and Tax Levy. He handed out a copy of 13 the new state legislature policies. Mayor Cavanaugh reviewed the items that would 14 affect the City and local school districts. He indicated he is not aware of the affects it 15 will have on the school district as each City is unique. • 16 Mayor Cavanaugh explained the real significance for the City of St. Anthony will be in 17 property tax relief, for all homes valued over$76,000. He noted this would continue 18 through 2004, which would affect the budgeting of the Council over the next several 19 years. 20 Mayor Cavanaugh indicated the legislature would phase out valuation so that in six years 21 all property owners would be paying the fair market price of their home. He noted the 22 legislature is eliminating HACA Funding in the amount of$350,000 which is a major 23 state aid cut for the City. 24 Mayor Cavanaugh noted levy limits have been placed on City governments to control 25 how much each City can spend. He indicated with less revenues coming in, this would 26 be difficult for each municipality. Mayor Cavanaugh noted there would be no truth in 27 taxation meetings this year either because of the late legislative sessions. 28 Mayor Cavanaugh indicated TIF funding has been greatly decreased which creates great 29 problems for future redevelopment of Apache Plaza. He stated the Council now has 30 severe restrictions on expenditures with the $350,000 cut from City revenues, which was 31 roughly 10% of total revenues. Mayor Cavanaugh stated he feels this is going to be a 32 trend over the next several years. • 33 Mayor Cavanaugh asked staff to review the budget and noted Council would not be 34 voting on this item until the next meeting. City Manager Mornson noted all department 35 heads were in attendance for questions. He explained there was still a large amount of