3. Major Challenges for 2014  Additional $607,375 for the Forest Lake City Center lease payment. The other half of the lease payment/debt service will be levied in the payable year 2015 budget. The impact of the increased levy will be mitigated by the expiration of a two TIF Districts that will add significant value back into the overall tax base.  Proposed levy increase of 12.4% increase compared to the the 2013 levy. Of this increase, 32% is attributable to General Fund activities and 68% is attributable to the lease payment/debt service associated with the Forest Lake City Center project.  Levy limits

7. Strategic Planning & Policy Considerations

9. Strategic Planning & Policy Considerations

22. Strategic Planning & Policy Considerations

23. Finance Committee Recommendations  Establish a separate Sewer and Water Fund.  Proceed with the purchase of Gateway Signs using Capital Improvement Fund resources.  Delay completing the Public Works Facility Concept plan until consensus exists to move forward on the project.

24. Strategic Planning & Policy Considerations

25. Strategic Planning & Policy Considerations

26. Strategic Planning & Policy Considerations

27. Park Board Recommendations

31. National Parks and Recreation Association Park Investment Benchmarks  National Average Spending for Parks and Recreation = $76 Per Capita  City of Forest Lake Average Spending for Parks and Recreation = $16.96 Per Capita

32. Council Budget Review –Budget Workshop, August 8 th at 6:30 pm- Complete –Finance Committee Review, August 13 th at 11:00 am- Complete –Budget Workshop, August 22 nd, 2013 at 6:30 pm (Public Input Session) –Budget Workshop, August 29 th, 2013 at 6:30 pm- Optional

33. Discussion Questions 1.Provide direction on the four remaining strategic planning/policy items. 2.Is the Council comfortable with the Finance Committee recommendations? 3.Is the Council comfortable approving the preliminary budget and certifying the preliminary levy, or would you like to have an additional budget workshop on August 29 th, 2013? 4.Is the Council comfortable with the Capital Improvement Plan?

34. Prepared by: The Department of Administration and Finance Aaron Parrish, City Administrator Ellen Paulseth, Finance Director