HomeMy WebLinkAbout2003 03-13 FCMFinancial Commission
Meeting Minutes
March 13, 2003
1. Call to Order
The meeting was called to order by Chair Escher at 7:00 PM
2. Roll Call
Members Present: Chair Escher, Commissioners Elftman, Nemec Peterson, Wilkinson
and Hruska.
Members excused: Commissioners Blamey
Others Present: City Manager Michael McCauley and Fiscal and Support Services
Director Douglas Sell
3. Approval of Meeting Minutes
Motion by Commissioner Wilkinson, second by Commissioner Nemec to approve the
meeting minutes from January 16, 2003. Motion carried.
4. Approval of Agenda
Motion by Commissioner Peterson, second by Commissioner Elftman to approve the
• agenda. Motion carried.
5. State Budget Balancing Proposals
Mr. McCauley explained the recent discussions and representations by the administration
regarding the Governor's proposal to balance the state budget. He explained the impact
of this proposal on the City's General Fund. The Governor's proposal includes all
revenues in the General Fund, Special Revenue Funds, Capital Project Funds and Debt
Service Funds in the "revenue base." It is from this base that he is projecting a five
percent reduction in LGA to the City. Mr. McCauley went on to explain that funds such
as debt service can only be used to pay principal, interest and debt related costs. Further,
that TIF funds can only be used for development related costs and not general operating
expenses. Therefore, it would be inappropriate to include these revenues as part of the
revenue base for determining a reduction.
6. City Budget Impact
Mr. McCauley explained the actual impact of the Governor's proposal on the General
Fund. Based on the dollars to be removed from the revenue stream for the General Fund,
the two-year impact is more than a 16% reduction. He identified several actions that
have been implemented to begin to address the shortfall in the City's fiscal year 2003.
1. Several positions have gone unfilled.
2. Potential for no or limited summer hires.
3. Reductions to recreation programs. :
• 4. Fireworks for Earle Brown Days has been curtailed.
Mr. McCauley indicated that identifying further budget reductions will be an exercise
that staff and he will go through with a list of items and issues presented to the Council.
i These items will include core activities, important activities, good activities and nice
activities. From this list, Council, with input from the Financial Commission, can make
determinations as to how the budget reductions can best be addressed.
Mr. McCauley responded to a question regarding League of Minnesota City activities by
identifying how the LMC is attempting to get the real reduction story out, testifying
before legislative committees regarding the impact of proposed reductions and
encouraging cities to contact legislators identifying the impact of proposed budget
reductions on their local communities.
Commissioner Wilkinson commented on the visible impacts such as the community
center, pool, -parks, fireworks, etc. should the proposed budget reductions be
implemented. He indicated that such service reductions may have an impact on the
residents generating comments.
7. Joint Council/Commissions Meeting
Chair Escher indicated that Commissioner Hruska will represent the Commission at the
joint meeting scheduled for March 17, 2003.
There is a Commission recognition meeting scheduled for 6:30 PM on April 21, 2003.
An RFP for banking services is scheduled for 2003.
Chair Escher suggested that the Council be advised that the Commission plate is fairly
full at this time given current financial conditions.
7. Next Meeting
The next meeting will be a joint meeting with the City Council at a workshop session on
Monday, May 19, 2003 beginning at 6:00 PM, City Hall, Council/Commission
Conference Room.
8. Adiournment
Motion by Commissioner Nemec, second by Commissioner Wilkinson to adjourn the
meeting. Motion carried. The meeting adjourned at 8:15 PM.
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