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Council meeting of March 3, 2003 <br />Page 4 <br />federal funds for improvements to the interchange at I -35E and CSAH 14. The federal application needs <br />a local sponsor, which would be Anoka County or the city of Lino Lakes. Anoka County Engimer Doug <br />Fischer addressed the Council and stated that the county's policy is to apply for one HPP project per <br />funding cycle, and that the county had identified another project as the #I priority for Anoka County in <br />this funding cycle. MnDOT area manager Rick Arnebeck was also present to discuss this issue in more <br />detail. He stated that an application would carry more weight if the application were submitted by <br />Anoka County rather than the City of Hugo. Lino Lakes council member Donna Carlson was present but <br />stated that she was not representing the Lino Lakes city council. It was her personal opinion that this <br />matter should be discussed further at the tri -cities meeting scheduled for March 20, 2003. <br />Miron made motion, Haas seconded, directing staff not to file the resolution requesting federal funding <br />for the I-35E/CSAH 14 interchange and to thank Washington County officials for their assistance in <br />formulating the document. <br />All aye. Motion Carried. <br />REVEEW IMPACT OF GOVERNOR PAWLENTY'S PROPOSED BUDGET CUTS <br />Governor Tin Pawlenty has proposed a reduction in local government aid to cities in the State of <br />Minnesota This reduction in state aid totals $234 million. Proposed reductions include elimination of <br />local government aid in the amount of $31,481 and a reduction of the City's market value homestead <br />credit in the amount of $138,277, for a total of $169,758. Finance Director Ron Otkin prepared a memo <br />outlining proposed options for consideration by Council in regard to the reduction in revenue the City <br />will see in 2003. As Council is aware, adoption of the City's 2003 budget did not include any local <br />government aid; the $31,481 was not included as new revenue for 2003. Ron outlined his response to <br />these cuts: 1) equipment certificates be issued to purchase a plow truck rather than pay cash; 2) fill only <br />one public works position in October 2003; and 3) temporarily suspend salary step increases for City <br />employees until the legislature adopts its final budget. <br />Miron made motion, Haas seconded, to accept the Finance Director's recommendation and temporarily <br />suspend City salary step increases until the legislature adopts its final budget. The other <br />recommendations will be revisited mid -year. <br />All aye. Motion Carried. <br />PROPOSAL FOR RETIREMENT OF TEMPORARY IMPROVEMENT BONDS FOR BEEP <br />In May of 1998, the City issued $985,000 General Obligation Temporary Improvement Bonds. The <br />proceeds, along with state aid construction fiords, were used to construct Fenway Boulevard and Fenway <br />Avenue. The special assessment revenue intended to pay off the bonds did not materialize. Thus, the <br />bonds were refinanced in 2000. The amount of the bonds was increased to $1,015,000 and the maturity <br />date was extended to August 1, 2003. Finance Director Ron Otkin prepared a financing plan that would <br />retire the bonds when they mature. <br />Miron made motion, Petryk seconded, to approve the purchase of the non-cash assets held in the 2000 <br />Temporary Bond Sinking Fund by the Sewer Construction Fund and that the Temporary Improvement <br />