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City Council Regular Meeting Minutes December 11, 2001 • Page 4 Mornson indicated that the plan for the money that the City collects from commercial tax statements was intended to go to the schools. Mornson shared the average decrease in property taxes in various cities, few cities have a small increase. He added that the higher the value of the residential property in the community,the larger the percent increase received in tax reduction. Mornson indicate that they were not required to hold a public hearing this year, but stated that they chose to in order to educate the residents. Mayor Hodson stated that he continues to be asked if the City is eliminating services with this budget. Mornson indicated that they are not eliminating services at this point, but that may happen to some extent in 2003. Mayor Hodson asked about the announcement of significant deficit within the state and whether they would experience those ramifications through the League of Minnesota Cities. Mornson indicated that,normally, when a budget is approved, all capital expenditures are also approved. He added that they will ask department heads to not automatically assume that all capital expenditures are approved, and that he and Larson • will request a checks and balances in order to have something to fall back on in case they take a mid-year cut from the state. Mayor Hodson asked if they needed to have some indication of potential cutbacks before the Council heads into their annual goal setting in January. Mornson stated that they may have that information by then, but not to be too concerned about it. Mayor Hodson closed the public hearing at 7:30 p.m. Motion by Councilmember Faust to adopt Resolution 01-094, re: Proposed 2002 City Budget and Property Taxes. Motion carried unanimously. X. REPORTS FROM COMMISSION AND STAFF. None. XI. GENERAL POLICY BUSINESS OF THE COUNCIL. None. XII. REPORTS FROM CITY MANAGER AND COUNCILMEMBERS. • Morrison reviewed the handout that he distributed containing his updates. Mornson indicated that it is going to be a busy year for them early on, as the League of Minnesota Cities Legislative Conference is on February 1, 2002. He also noted the League of Minnesota Cities Leadership and Elective Officials Conference was to be held on February 15-16 in St. Louis Park.