8.1. SR 05-12-2003 - Laserfiche WebLink

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Item ~ 8.1. MEMORANDUM TO: FROM: DATE: Mayor and City Council Pat Klaers, Ci~d~ninistrator May 12, 2003 SUBJECT: Updates on State Legislative Session, City Budget, and Public Safety/City Hall Project Most of the update on the State Legislature, city budget, and the Public Safety/City Hall project will be given verbally at the May 12, 2003, Council meeting. State Legislature Attached for your information is some recent material from the League of Minnesota Cities regarding activities at the State Legislature. To a certain degree in the last few weeks, the state budget has taken a back seat to other issues such as the conceal and carry law, the right-to-know law, healthcare, and bonding for roads. The pace at the Legislature is getting "fast and furious" and there are many long nights ahead as the session is scheduled to adjourn on Monday, May 19, 2003. There are still lots of indications that a special session will be needed to resolve the budget shortfall. I have recently talked with Senator Wergin regarding proposed legislation and our city budget issues. City Budget The number of adjustments in the adopted 2003 budget that have been suggested by department heads have been remarkable. Use of reserves will still be necessary but the £mal amount will not be determined until some time toward the end of the year when we know more about the amount of growth related revenues that are received. Almost half (about 45%) of the projected 2003 cuts in state aid will be addressed with adjustments in personal services. We are currently working on the guidelines for a voluntary leave program. Recommended budget amendments will be presented to the City Council after the Legislature has determined the amount of cuts in state aids. Some amendments will be "easy" for the City Council to approve; however, there will be some budget proposals that will generate Council discussion on priorities for desired services and programs. This will be especially true when we consider the 2004 budget. My main budget concerns remain the size of the cuts in state aids for 2004 and what type of levy limits will be in place for 2004.