11-09-1981 Special
CITY OF RICHFIELD
Special Meeting
November 9, 1981
The City Council of the City of Richfield met in special session on November 9,
19$1 at 5:30 p.m.
The meeting was called to order. by Mayor Priebe at 5:49 p.m.
Present: Bunce, Collins, Hassenstab, Priebe
Absent: Ludeman
riayor Priebe welcomed State Senator Lindgren and State Representatives
Hokanson and Swanson. Mayor-Elect John Hamilton was also present.
City Manager Karl Nollenberger stated that the purpose of the meeting was to
share information regarding how potential cutbacks in local government aids could
affect the City of Richfield and what options could exist to deal with some of the
overall state budget deficit.
Senator Lindgren and the Representatives described the various elements of
the state's deficit. '
Mr. Nollenberger showed a chart depicting project 1982 cash flow, based on
these assumptions. This chart indicates that the city will be required to borrow
on the short-term market in order to meet its cash needs during 1982. He
recommended that the Legislature authorize cities to sell "anticipation" bonds
for local government aid, and/or to consider selling such bonds themselves, on
behalf of the cities in the state.
Mr. Nollenberger also presented data showing 1982 estimated expenditures,
by division and department, and revenues generated, by division and department.
This shows a net cost, by department. He also described which activities are
mandated and which are discretionary. This shows that Public Safety and Community
Services activities comprise 87 percent of the city's discretionary expenses,
and that any major reductions in city spending must affect such basic services
as Police, Fire, Parks and Streets.
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Special Council Meeting -2- November 9, 1981
Mr. Nollenberger suggested that Legislators may want to look at setting local
government aid levels by tying them to some specific state revenue source, such as
the sales tax. This would enable cities to share both economic prosperity and
decline; the monthly receipt of such revenues would enable cities to immediately
evaluate their revenue situation and make adjustments on a monthly basis. He
also suggested looking at requiring property tax receipts to be transferred to
cities faster, or at least to transfer a portion of such anticipated tax receipts
faster. Another alternative discussed was to adjust the time that property owners
pay taxes from twice yearly to quarterly. This would accelerate revenue receipts
for the city and minimize the need for such a-large fund balance.
The meeting adjourned to the regularly scheduled city council meeting at
7:00 p.m.
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Date Approved: November 23, 1981 ~ ~ ~ ~~~
~~ ona d J. Prieb ~ Mayor
Y
oyc L. Wilde Acting City Clerk
~~ N ~~ _
Karl Nollenberger City Manager