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12-08-2003 CC MIN MEETING OF THE ELK RIVER CITY COUNCIL HELD AT THE ELK RIVER HIGH SCHOOL LITTLE THEATER MONDAY, DECEMBER 8, 2003 Members Present: Members Absent: Staff Present: Mayor K_linzing, Councilmembers Dietz, Kuester, Motin, and Tveite None City Administrator Pat Fdaers, Finance Director Lori Johnson, and Recording Secretary Tina Allard Call Meeting To Order Pursuant to due call and notice thereof, the meeting of the Elk River City Council was called to order at 6:30 p.m. by Mayor Fdinzing. Consider 12/8/2003 Agenda MAYOR KLINZING ADDED BRIMEYER UPDATE TO THE AGENDA UNDER OTHER BUSINESS MOVED BY COUNCILMEMBER TVEITE AND SECONDED BY COUNClLMEMBER DIETZ TO APPROVE THE COUNCIL AGENDA AS AMENDED. THE MOTION CARRIED 5-0. Consider Consent Agenda MOVED BY COUNCILMEMBER MOTIN AND SECONDED BY COUNCILMEMBER TYEITE TO APPROVE THE CONSENT AGENDA AS FOLLOWS: 3.1. NOVEMBER 24, 2003 COUNCIL MINUTES 3.2. CHECK REGISTER 3.3. HIRE NEW POLICE OFFICER AT THE STARTING PAY PER THE PATROL UNION CONTRACT AND PROBATION FOR THE FIRST TWELVE MONTHS OF EMPLOYMENT THE MOTION CARRIED 5-0. Open Mike No one appeared for Open Mike. Troth in Taxation Pubhc Hearing City Administrator Pat Kdaers stated that the purpose of this hearing is to receive public input on the proposed 2004 city budget and tax levy. He reviewed the budget process. Mr. I~daers stated that Elk River state aids were reduced to 8 1/2 percent or $644,138 and the legislature also set levy limits on municipalities. He stated that the general fund budget is City Council Minutes Page 2 December 8, 2003 proposed in the amount of $7,875,400 for 2004, which is a $627,000 or 8.65 percent increase over the adopted 2003 budget. He stated that the largest expenditure in the general fund budget is for personal services. Finance Director Lori Johnson stated that the Council approved a maximum tax levy of $6,564,803. She reviewed the breakdown of how these funds will be used. Ms. Johnson provided a comparison of the 2003 and 2004 projected tax levy. She stated that the proposed city tax rate is decreasing slightly to 43.731 percent, which is a two percent decrease from the tax rate for 2003. Nix. I~aers stated that the city's net tax capacity is increasing by 12 percent. Nix. K2aers and Ms. Johnson reviewed the general fund revenues, general fund expenditures, special revenue funds, and the enterprise funds. Mayor Fdinzing opened the public hearing. Ron Middlestadt, 19681 T~vin Lakes Road-Questioned the amount of the fund balance. Mr. K2aers stated that 40 percent of the city's operating budget is kept in reserve and this is a guideline that is established by the State Auditor. Ms. Johnson stated that the fund balance levet is addressed in the financial management plan and this amount is needed in the fund to cover unexpected items such as cuts in local government aid or a natural disaster. Councilmember Dietz stated that the city will not collect money from property taxes until June, so they use these funds to operate through the first half of the year. There being no one else to speak to this issue, Mayor I',2inzing closed the public hearing. Mayor Klinzing announced that the City Council would be considering the 2004 budget and tax levy at 6:30 p.m. at the December 15, 2003 meeting held at the senior high small theater. Other Business Mayor [~dinzing stated that unless any Councilmembers had concerns over the content of the Brimeyer summary that was distributed on November 21, 2003, she and Mr. Brimeyer were going to present the work plan to the department heads at a 9:00 a.m. meeting on December 16, 2003. It was the consensus of the Council to move forward with this project as stated by the Mayor. Staff Updates Mr. K_laers provided a brief update of the City Hall construction project and noted that the move has been moved postponed one month. Executive Session MOVED BY COUNCILMEMBER MOTIN AND SECONDED BY COUNCILMEMBER TVEITE TO CALL AN EXECUTIVE SESSION TO DISCUSS THE BOSTON/CONCORD ASSESSMENT APPEAL. THE MOTION CARRIED 5-0 City Council Minutes December 8, 2003 Page 3 The Council recessed at 7:05 p.m. to go into executive session. Following the executive session Mayor ICIinzing reconvened the regular meeting at 7:45 p.m. 9. Adjournment There being no further business, Mayor I~dinzing adjourned the meeting of the Elk River City Council at 7:45 p.m. Tina Allard Executive Secretary