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City Council Regular Meeting Minutes December 11, 2001 • Page 3 the Minneapolis schools were legally truant last year, meaning that they missed seven or more unexcused days of school. Klobuchar turned her attention to the Council for any questions. Councilmember Sparks asked Klobuchar to expound upon they ways that they are handling juvenile crime. Klobuchar indicated that it is their goal to make certain that there is appropriate punishment for kids. She indicated that they are using more and more community service for punishments. She stated that national statistics show that sixty percent of children who get in trouble once, do not get in trouble again. Klobuchar added that they do not want to over-react when children first act out. She added that she was a big believer in community service where they are at least fixing up the neighborhood where they have committed their crime. Councilmember Thuesen thanked Klobuchar for her continuous information. Mayor Hodson thanked Klobuchar for her presentation. • IX. PUBLIC HEARINGS. 1. Resolution 01-094,re: Proposed 2002 Cily Budget and Property Taxes. Mayor Hodson opened the public hearing at 7:15 p.m. Mornson indicated that Roger Larson was also present to review a few overheads with the Council. He added that there has been a drastic relationship change between local and state governments. Mornson stated that the General Fund accounts for resources devoted to financing general services which include: General Government, Police, Fire, Public Works and Parks. He added that it is the largest budget and is the main operating fund of the city. Mornson reviewed the levies and budgets for 2001 and 2002. He stated that state legislature eliminated HACA aid to cities with the expectation that Cities would levy to recover their loss in revenue. Mornson added that this change created a significant increase in the Levy and Tax Rate. Mornson stated that the levy for 2002 could basically be attributed to the loss in state revenue that they are receiving based on the property tax reform. Mornson added that expenditures for 2002 were largely the same as 2001, and that sixty- five percent of expenditures were made up of basic services (police, fire and public • works). He added that there was no new staff in the budget, but that there were about $475,000 worth of capital expenditures.