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City Council Minutes Page 6 July 14, 2003 ............................. Councilmember Kuester stated that the city committed to contribute ~;10,000 to the Arts Alliance in 2003 and that the city should follow through on this commitment. COUNCILMEMBER KUESTER MOVED TO RELEASE THE REMAINING $5,000 TO THE ELK RIVER AREA ARTS ALLIANCE. COUNCILMEMBER TVEITE SECONDED THE MOTION. THE MOTION CARRIED 3-1. Councilmember Motin opposed. 5.9. Transitional Housing Program Mayor Klinzing stated that at the June 23, 2003 City Council meeting, a motion was made to have the city work with Love Elk River for the leasing of the Bailey house for a one year period. This motion was tabled until the July 14, 2003 meeting. Mayor Klinzing stated that Councilmember Dietz, who has some personal history with the house, was not in attendance tonight, therefore it is recommended that this item be tabled again until the next City Council meeting on July 21, 2003. COUNCILMEMBER KUESTER MOVED TO TABLE CONSIDERATION OF THE BAILEY HOUSE LEASE MOTION UNTIL THE JULY 21, 2003 MEETING DUE TO THE ABSENCE OF COUNCILMEMBER DIETZ. COUNCILMEMBER MOTIN SECONDED THE MOTION. THE MOTION CARRIED 4-0. 6.1. City Clerk Vacancy Update City Administrator Pat Klaers indicated that he met with the City Clerk Selection Committee. Mr. Klaers stated that 31 applications were received and out of those, five have been selected for interviews, which will hopefully take place next week. Mayor Klinzing asked if she and the City Council could obtain copies of the five candidates applications. Mr. Klaers stated that once the interviews are confirmed, he will provide the Mayor and City Council with copies of the applications. 6.2. 2004 Budget Update City Administrator Pat Klaers stated that the 2004 budget will be very conservative in terms of new and additional expenditures. Mr. Klaers explained that the LGA cuts will be the same in 2004 as they were in 2003 and 60% of that loss can be recaptured through increased property taxes. Mr. Klaers indicated that he needs to know as soon as possible if the City Council is not interested in recapturing 60% of the 2004 LGA cuts through increased property taxes. Mr. Klaers stated that if the city can recapture 60% of the cuts, then services and programs should remain near the current level. He stated that if some of the LGA money is not recaptured, then more than likely program and/or service cuts will be necessary. Mr. Klaers stated that a big issue for the City Council to think about is employee wages and benefits. Councilmember Motin stated that he is not in favor of significantly increasing the property tax rate. He also stated that he doesn't believe with the state cuts in LGA to the city, that requests for funding contributions (such as the contribution to the Arts Alliance) should be approved.