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In summary, Commissioner Sieber stated that he prefers subjecting a budget to <br />referendum - but making it a difficult procedure. <br /> <br />Commissioner Bauerkemper - Stated that she would like to see the citizens have <br />a handle on the budget but she feels that right now the 5 year plan should be <br />adopted by ordinance and the yearly budget by resolution. If Council does <br />not approach the yearly budget logically, the charter could be amended so that <br />yearly budgets are adopted by ordinance. <br /> <br />Commissioner Greenberg stated that he is undecided between budget resolutions <br />and budget ordinances and noted that all the models refer to budget resolutions. <br /> <br />Chairman Heitman stated that adopting budgets by ordinance is a gray area, it <br />has never been tested according to the League of Minnesota Cities -- there is <br />no real precedence and budgets can be adopted by ordinance. <br /> <br />Commissioner Greenber§ referred to Chapter 3 and noted that tax levy, etc., are <br />adopted by Ordinance. <br /> <br />Chairman Heitman stated that this point leads to another gray area -- budgets <br />at the City level are considered administrative and have been adopted by <br />resolutions and budgets at the State level are considered legislative and <br />accomplished by ordinances. <br /> <br />Commissioner Greenberg inquired as to Council's procedure regarding the budget. <br /> <br />Commissioner Sieber stated that he thinks Council determines what they want to <br />accomplish in the upcoming year, determine the expected revenue for that year <br />and if the expected costs exceed the expected revenue, they increase the mil <br />rate; they are limited as to how much they increase the mil rate. <br /> <br />Commissioner Lichter stated that the whole issue is that if we allow Council <br />to adopt budgets by resolution -- the people have no control and if Council <br />has to adopt budgets by ordinance -- we are tying the hands of the City <br />administratively. Commissioner Lichter suggested the following procedure <br />regarding budgets: Allow budgets by resolution, give citizens the right to <br />protest the budget by petition (not the entire budget -- specific line items), <br />that petition can be overidden by Council at which time the original figure <br />is placed back on the budget, if the petition is overidden by Council a <br />second petition could be filed by the citizens with an even larger number of <br />signatures required to put the budget to a referendum. <br /> <br />Commissioner Sieber suggested that the budget could be submitted to binding <br />arbitration. If Council receives a petition protesting the budget and Council <br />and 5 sponsors of the citizenry cannot solve the issue, it would be submitted <br />to a binding arbitrator. This process would avoid an election and streamline <br />the process. <br /> <br />Commissioner Lichter stated that he does not think binding arbitration could <br />streamline the process. <br /> <br />Commissioner Sieber suggested making the budget subject to initiative and <br />referendum and allowing Council authority to overide, but in doing so they <br />may be ending their political career. This issue is going to require a lot <br />of thought and we probably won't reach a decision tonight. Commissioner <br />Sieber suggested that this issue could defaulted to the public hearing and <br />the Commission could have a decision after input from the public has been <br />received. <br /> Sp CC/September 26, 1983 <br /> Page 2 of 5 <br /> <br /> <br />