The Lindon City Council held a Special Budget Work Session on May 13, 2003 at 6:00 p.m. in the Lindon City Center Council Chambers at 100 North State Street, Lindon, Utah.

Conducting: Larry A. Ellertson

PRESENT

Larry A. Ellertson, Mayor
H. Toby Bath, Councilmember
Lindsey Bayless, Councilmember
James A. Dain, Councilmember
Jerald I. Hatch, Councilmember (arrived 6:30 p.m.)
Ott H. Dameron, City Administrator
Kristen Colson, Finance Director
Don Peterson, Public Works Director
Venla Gubler, Administrative Clerk

ABSENT

Jeff Acerson, Councilmember

The meeting began at 6:15 p.m.

Mr. Dameron distributed a memo with the recommendations for the 2003/2004 budget for the Council's review. He explained that with revenue projections down due to the economic slump and the construction of two additional Home Depot stores, the City is proposing several cost cutting proposals, such as keeping operational expenses static including wages and salaries, and postponing capital improvement projects and equipment purchases until reevaluation next year. He commented that he had talked with employees about the hold on raises and there was support for the measure. He listed the urgent capital improvement projects that would be continued. There was discussion among the Council of pending developments that would increase Lindon's sales tax base.

Discussion turned to the possible issues for the coming year's budget. Councilmember Dain commented that if employees are not given increases, that the issue of Mayor and Council insurance coverage is not appropriate. Mr. Dameron informed the Council that Lindon has currently set the franchise tax rate at 3½ percent. Councilmember Bath asked what other cities are collecting. Mr. Dameron replied that most are set at 6 percent. Mayor Ellertson suggested that the revenue numbers be refined before serious consideration is given to increasing the franchise tax rate. He also suggested that figures be estimated to just increase wages and salaries by 1percent and have the employees cover the increases in insurance coverage. Mr. Dameron suggested that if employees are willing to forego the payroll increases, that the Council should consider keeping the insurance package intact. Mayor Ellertson observed that the insurance package was more valuable.

Mr. Dameron noted that additional cuts would be effected by not filling a recently vacated position in the parks division and by not creating the storm water supervisor position. Mr. Peterson added that the only changes would be in the seasonal maintenance positions. Mayor Ellertson observed that there may be residents in the community that may volunteer to help.

Mr. Dameron also suggested that if the City is cutting, residents are probably cutting also. He suggested consideration be given to no CPI increases on utility rates in the coming year. Councilmember Dain commented that increases in the storm water utility can be considered when the supervisor position is re-evaluated.

(Councilmember Hatch arrived at 6:30 p.m.)

The Councilmembers discussed the current storm water utility rate that is set at $3.00 per equivalent residential unit (ERU). It was noted that the City Engineer had recommended yearly increases in the water utility to keep up with expenses. It was noted that the increase last year would probably cover the expenses for this year. Mayor Ellertson suggested a close watch on the enterprises funds this year to monitor expenses. Mr. Dameron informed the Council that the reserves showing in the fund accounts are primarily assets and not cash. Ms. Colson added that the funds have functioned well thus far because of the good reserves. There was a discussion of the public safety department budget.

Mr. Dameron asked if the Council agreed with the proposed budget cuts. The Council concurred with the suggestions. There was a short discussion of the proposed changes to the fee schedule, in particular, the proposed increase in the price of cemetery lots. Mayor Ellertson verified that the revenues include the grants that have been received and the expenses include the projects that have been designated to receive these funds. This was confirmed. Mr. Dameron asked if there were any other questions. There were none.

ADJOURN

THE WORK SESSION WAS ADJOURNED BY CONSENSUS AT 7:00 P.M.

APPROVED - June 3, 2003

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