Funds for phase two of the Austin Business Park, otherwise known as Cook Farm, should be approved at the next council meeting.

At the work session Tuesday night, the council agreed to allocate $200,000 each year over the next five years from the building fund to go toward developing storm sewer, sanitary sewer and a portion of the streets among other things over a 22-acre area adjacent to U.S. Highway 218.

Improvements will not include gas, water or electricity. Public Works Director Jon Erichson said Austin Utilities will not extend services to the park until something is there. Once a tenant is committed, the utilities will be put in.

Erichson also asked that some sort of marketing strategy be figured out to attract businesses to the area.

Mayor Bonnie Rietz encouraged council members to approve the fund allocation.

"We really need to be looking to our economic base and growing it," she said.

The city council is considering lifting the hold on purchases from city departments. The hold was instituted to make sure options to decrease expenditures were available when the state finalized local government aid (LGA). The $933,000 cut to Austin's LGA this year match those planned for in the city's previous budget proposal, so department heads will probably receive the freedom to make those purchases.

Also concerning the budget, council members shared citizens' comments and suggestions from the April ward meetings.

The city brought the proposed budget to the citizens in three ward meetings to educate the public of the situation and take suggestions with dealing with the coming budget crises.

Concerns about the ice rinks came up in the 2nd Ward meeting. In the proposal, the council had 2003 savings of $7,000 by closing the outdoor ice rinks. Some citizens offered suggestions such as keeping a rink open, but not the warming house or using the East Side Lake.

There were a number of questions on spending from the First Ward, council member Mickey Jorgenson said.

Some citizens thought the new library and arena were a waste of money.

The Third Ward meeting, despite only having three attendees, had a number of questions concerning city-funded organizations such as the Development Corporation of Austin and the Welcome Center.

Also at the meeting, Darwin Viker from LarsonAllen presented the city's annual audit.

He said that with revenues exceeding expenditures by about $613,000, Austin did fine in 2002.

"I would say in light of the economy, we had a decent year last year," he said.

Of that revenue, $285,000 was transferred to make up a deficit in the health insurance fund.

The undesignated fund balance is at about $6.5 million. Viker said that is a good position to be in, especially with the budget problems.

"You've got a fund balance to allow you to say, 'OK, how do we want to address this?'" he said.

Matt Merritt can be reached at 434-2214 or by email at matt.merritt@austindailyherald.com