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3.3. SR 08-20-2001River HEPIORANDUH Item # TO: FROM: DATE: SUBJECT: Mayor and City Council Pat Klaers, City Admini~t ~t~~ August 20, 2001 Call Special Meeting for September 4 to Discuss 2002 City Budget 3.3. The City Council held a 2002 budget worksession on July 2, 2001. At that time the legislature had just recently completed its business and major changes in the tax system were passed by the legislature and signed into law by the Governor. The League of Minnesota Cities, the state, and municipalities, townships, and counties are all still trying to sort out the impact of the new tax system on budgets for 2002. The city still must certify its proposed maximum 2002 levy to the county by September 15, 2001. A special Council meeting is planned for 6:00 p.m. on Tuesday, September 4, 2001, in order to provide an update on the status of the 2002 budget and to discuss what information is available regarding state aids, the levy limits and other issues impacting the budget. Due to the late timing of the special session, no information is anticipated from the county regarding increases in the city's net tax capacity and in this regard we won't have the same type of base data to work from in establishing our levy. Information is still coming in from the state and we should learn more in the next few weeks for the Council discussion on September 4, 2001. Recommendation It is recommended that the City Council call a special meeting to discuss the 2002 budget for 6:00 p.m. September 4, 2001.