10-27-10 Council Workshop Minutes

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MINUTES CITY COUNCIL OCTOBER 27, 2010 Again, it was suggested that this matter be discussed at a joint workshop with the Council and Parks & Recreation Commission. There was discussion about fire truck replacement, and the Finance Director noted that the first truck replacement is scheduled for 2017. It was also pointed out that the Fire Department's contribution toward the cost of replacement is reflected in the budget. Blesener pointed out that there is the possibility that the replacement schedule could be pushed out further. The Finance Director noted that the City's policy has been to extend the life of equipment a~1d vehicles whenever possible. Just because replacement is scheduled in a given year, does not automatically guarantee that the replacement will occur in that year. The City Administrator agreed, and noted that the Capital Improvement Budget is used as a placeholder for replacement. However, if there is useful life in a vehicle or equipment, the City will push the replacement schedule further out. In acting on the Capital Improvement Budget, the Council will only be approving the 2011 Budget year. Blesener noted that most of the capital funds are not levy supported. He noted that the City has money set aside for replacement of the Public Works Garage that project will not require tax dollars. The City Administrator indicated that the City is financially strong at an appropriate level. He noted that the state of the economy as well as the State's actions relative to Ioca1 government aids continue to have a negative impact on the City's finances. "fhe Administrator reported that the League of MN Cities has done a study that reflects that some communities are headed for serious financial problems if things do not change. Little Canada is not one of these cities, but the Administrator pointed out that the City has to stay on top of the situation. The Administrator pointed out that the City has certified a preliminary 2011 levy at 5.)8% with the goal of reducing that amount at final levy adoption. The final 2011 Budget will be adopted at the December I5°i Council meeting. The Administrator noted that the 20] ]Budget includes a 2% cost of living increase for employees. Last year employees received no cost of living increase. 'T'here was discussion about the methodology use for determining employee salary scales. McGraw requested information relative to cost of living increases for 2010 and 2011 for other Ramsey County cities. The Administrator indicated that he would survey the Ramsey County City Managers for this information. He also noted that the Budget includes an additional 5% City contribution toward employee health insurance costs. The renewal came in at an 11 % increase, and 5