12-02-2002 CC MIN - EXECUTIVEMEETING OF THE ELK RIVER CITY COUNCIL
HELD AT THE ELK RIVER CITY HALL
MONDAY, DECEMBER 2, 2002
Members Present:
Members Absent:
Staff Present:
Mayor Iadinzing, Councilmembers Dietz, Kuester, Motin, and Tveite
None
City Administrator Pat Klaers, Finance Director Lori Johnson
o
Call Meeting To Order
Pursuant to due call and notice thereof, the meeting of the Executive Session of the Elk
River City Council was called to order at 7:45 p.m. by Mayor Iadinzing.
The Council conducted a performance review of the City Administrator.
Adjournment
It was the consensus of the City Council to continue the meeting to December 9, 2002,
following the regular City Council meedng.
Sandra Peine
City Clerk
MEETING OF THE ELK RIVER CITY COUNCIL
HELD AT THE ELK RIVER CITY HALL
MONDAY, DECEMBER 2, 2002
Members Present:
Members Absent:
Staff Present:
Mayor Klmzing, Council_members Diem, Kuester, Motto, and Tveite
None
City Administrator Pat Fdaers, Finance Director Lori Johnson, and City
Clerk Sandra Peine
Call Meeting To Order
Pursuant to due call and notice thereof, the meeting of the Elk tLiver City Council was called
to order at 6:00 p.m. by Vice Mayor Tveite.
Consider 12/02/2002 Agenda
COUNCILMEMBER MOTIN MOVED TO APPROVE THE AGENDA.
COUNCILMEMBER DIETZ SECONDED THE MOTION. THE MOTION
CARRIED 4-0.
Mayor Iadinzing arrived at this time (6:02 p.m.)
Truth In Taxation Public Hearing
City Administrator Pat Fdaers indicated that the purpose of this hearing is to receive citizen
and property owner input on the proposed 2003 city budget and tax levy.
City Administrator Pat I~daers reviewed the budget process. He stated that the Council
adopted the maximum levy prior to September 15. The City Administrator stated that the
general fund budget is proposed in the amount of $7,687,900 for 2003, which is a $472,400,
or 6.5 percent increase over the adopted 2002 budget. He explained that the largest
expenditure category in the general fund budget is personal services.
Finance Director Loft Johnson noted that the Council approved a maximum tax levy of
$5,980,161. She reviewed the breakdown of how these funds were used. Lori provided a
comparison of the 2002 and 2003 projected tax leW. The tax levy is increasing 861,873 in
2003. The Public Safety Building debt levy was noted being new for 2003. Lori stated that
the proposed city tax rate for 2003 is increasing slightly to 44.513 percent, which is a 2.1
percent increase over the tax rate for 2002. Lori explained that this increase is partly due to
the public safety bond. Lori noted that there has been a sizeable increase in the 2003 net tax
capacity, which increased over 14 percent. Lori stated there will be a slight decrease in the
total tax rate from 2002 to 2003 from 139.799 to 136.370 according to the information
provided by Sherburne County.
The City Admimstrator reviewed the general fund revenues. He indicated that the City tax
revenues are restricted by levy limits. The City Admimstrator talked about local government
City Council Minutes
December 2, 2002
Page 2
aid (LGA) and how it impacts the city's budget. He and the Finance Director then reviewed
the general fund expenditures, special revenue funds and enterprise funds.
Councilmember Dietz questioned what the City would do if LGA is cut by the state
legislature. The City Administrator responded by indicated that the city could use reserves,
reduce program levels, reduce recreation activities or not fill positions that have been
budgeted.
Mayor Iadinzing opened the public hearing
Ed Studniski, 9936 174m Avenue NW questioned how much the City has in reserve and how
much of the personnel cost is spent on employee health care. The Finance Director
responded.
There being no one else to speak to the issue, Mayor Klinzing closed the public hearing.
Mayor I<linzing indicated that the budget and tax levy would be adopted on December 9.
Executive Session
The Council recessed at 7:35 into executive session. The Mayor indicated that the purpose
of the executive session was to conduct a performance review of the City Administrator.
The Council reconvened at 9:11 p.m. The Mayor noted that the executive session of the
council has been continued to December 9, following the regular city council meeting.
Adjournment
There being no further business, Mayor Iadinzing adjourned the meeting of the Elk River
City Council at 9:15 p.m.
Sanclra Peine
City Clerk