07-02-2001 CC MIN - SPECIAL - Laserfiche WebLink

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City Council Minutes Page 3 July 2, 2001 COUNCILMEMBER MOTIN MOVED TO AUTHORIZE STAFF TO PROCEED WITH THE HIRING OF A PROSECUTING CITY ATTORNEY AS A STAFF MEMBER BEGINNING IN 2002 AND TO PROVIDE THE COUNTY WITH SIX-MONTH NOTICE OF TERMINATION OF SERVICES. COUNCILMEMBER TVEITE SECONDED TI-IE MOTION. THE MOTION CARRIED 5-0. 2002 Budget Discussion City Administrator Pat K. laers reviewed the 2002 budget items and issues listed in his June 20, 2001 memo. Presentation began w/th an overvie~v of the 2001 legislative session. Items noted include levy limits, the possible need for equipment certificates, the elimination of HACA, increases in LGA, and the impact of the new tax formula on TIF districts. Furthermore, it was noted that no truth-h-taxation public hearings are required for the 2002 budget. An overview of the 2002 budget indicates that the revenues are projected to increase 9% or $581,700. Revenues are projected in the amount of $7,051,700. Expenditures are projected to increase almost 15% or by $964,000. Total expenditures requested amount to $7,434,000. Comparing these two figures creates a budget gap between projected revenues and requested expenditures of $382,300. The revenues discussion centered on additional property taxes and additional growth related revenues in such areas as building permits and plan check fees. It was noted that an additional $450,000 in tax revenue is projected for the general fund and that the growth related revenues are more closely related to 1999 levels than the extraordinarily high levels that were received in 2000. The street services additional revenue is based on anticipated money from the municipal utilities for mechanic services. It was also noted that the l/quor and utilities transfers are both increasing by $10,000. The expenditure categories were reviewed and most of the discussion related to personal services, additional employees, and capital outlay (equipment/vehicle) expenditures. The possible need to use equipment certificates was discussed. It was noted that interest rates are currendy very Iow for equipment certificates. Finance Director LoriJohnson reviewed the optical imaging system that is proposed as a capital outlay purchase for 2002. The city administrator suggested this expenditure be removed from the general fund budget and that it be placed into the equipment reserve budget. Furthermore, revenues (by way of administrative project fees from the East Elk River project) need to be put into the equipment reserve to fund this expenditure. The Council discussed the f~re department floor repair project. It was suggested that this $22,500 item also be moved into the equipment reserves budget and that revenue come into this budget by way of the State reimbursement for city expenses associated with the July 1997 storm. The $150,000 street/park department truck was discussed. The city administrator suggested that half of this truck be £manced with tax revenue and the other half with equipment reserves. The Council indicated that maybe all of the truck cost should be financed outside of the general fund; either by way of equipment reserves or equipment certificates.