09/12/2011 Council Packet - Laserfiche WebLink

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• • • CITY COUNCIL WORK SESSION August 15, 2011 DRAFT 1 CITY OF LINO LAKES 2 MINUTES 3 4 DATE : August 15, 2011 5 TIME STARTED : 5:35 p.m. 6 TIME ENDED : 7:40 p.m. 7 MEMBERS PRESENT : Council Member Gallup, Rafferty, Roeser 8 and Mayor Reinert 9 MEMBERS ABSENT : Council Member O'Donnell 10 11 Staff members present: City Administrator Jeff Karlson; Public Services Director Rick 12 DeGardner; Community Development Director Mike Grochala; Director of 13 Administration Dan Tesch; Public Safety Director John Swenson; Director of Finance Al 14 Rolek; City Clerk Julie Bartell 15 16 2012 Budget — Administrator Karlson noted that the council previously reviewed the 17 proposed budget and staff is responding with information on possibilities to fill the 18 budget gap between proposed revenue and expenditures in the amount of $281,000 19 (written information distributed). He also has health insurance figures that will be 20 presented for discussion. 21 22 Finance Director Rolek reviewed the list of items that could offset the gap including 23 results of the organizational review, a lesser than expected increase in health insurance 24 costs, and change in janitorial services. The lease revenue for the ECFE portion of the 25 city facility is being deducted (one half year) since there isn't certainty at this point that 26 the lease will continue after mid -year. That leaves a gap of about $76,000. Mr. Rolek 27 then reviewed items presented as possibilities to reduce that cap including a change to the 28 capital equipment levy, use of fund reserves, a reduction in the cost of civil and criminal 29 legal costs, and employee furloughs. Shared services and cooperative agreements are a 30 good long term approach and possibilities in that area being explored however that can't 31 help much in the short term. Mr. Rolek noted that personnel costs are the biggest part of 32 the city's budget. Administrator Karlson asked the council to keep in mind that most city 33 employees are union represented so many changes must be negotiated. 34 35 Health insurance costs were discussed. Administrator Karlson distributed a chart 36 indicating current and 2012 costs and percentages. The figures use a presumed increase 37 of 14% (actual increase is not yet known). He indicated that the city's HSA contribution 38 and the employee cost for single coverage is guaranteed under contract through 2012 so 39 wouldn't be areas the council should consider changing. The Mayor indicated that he 40 understands it is difficult to make changes for 2012 but he is interested in what can be 41 done with the following year, including understanding what other cities are doing. A 42 council member noted that government has to be a leader in the area and get the best 43 bargain for the money spent; he sees some reduction the city contribution to the HSA 44 account as a future possibility as well as the city paying a lower percentage of the 45 premium. The council also discussed the waiver of coverage option. The council 1 P29