5.2. & 5.3. SR 12-10-2001 - Laserfiche WebLink

Home Browse Search

Item 5.2. & 5.3. ME IORANDU I TO: FROM: DATE: SUBJECT: Mayor and City Council Pat Klaers, City Administrator December I 0, 200 I Consider 2002 Budget To say that the preparation of thc 2002 municipal budget was atypical would be an understatement. Budgeting in 2001 was more difficult than usual due to the legislative special session in June which resulted in major property tax changes, significant changes in the state- aid formulas, the reintroduction of levy limits for municipal government, and the state "takeover" of funding for schools. Making consideration of the 2002 budget even more unusual is the recent projection of a 2 billion dollar shortfall in the state budget that ends June 30, 2003. Throughout the year thc City Council has held a series of budget meetings in order to consider thc 2002 municipal budget. In December 2001 the City Council needs to approve the final version of the 2002 general fund budget and the property tax levy resolution for collection in 2002. After months of staff preparation, the City Council reviewed the first draft of the proposed 2002 budget at its July 2, 2001 meeting. These July 2, 2001 revenue and expenditure summary pages are attached for your reference. The draft budget was presented consistent with direction from the Minnesota Department of Revenue, which advised us to "proceed under current law." The budget figures presented to the City Council for discussion on July 2, 2001 showed the following: Revenues $7,051,700 Expenditures 7,434,000 Budget gap $ 382,300 By the time the July 2, 2001 meeting was held, the legislative special session had just ended and we became aware of the plan for leW limits and changes in the state-aid formula. No details were available but we knew changes would be required in the July 2, 2001 figures.