08/24/2009 Council Packet - Laserfiche WebLink

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• • r c� SPECIAL WORK SESSION August 10, 2009 DRAFT 1 2 CITY OF LINO LAKES 3 MINUTES 4 SPECIAL WORK SESSION 5 6 DATE : August 10, 2009 7 TIME STARTED : 5:30 p.m. 8 TIME ENDED : 9:42 p.m. 9 MEMBERS PRESENT : Council Members Reinert, Stoltz, 10 Gallup, O'Donnell and Mayor Bergeson 11 MEMBERS ABSENT : none 12 13 Staff present: Acting City Administrator, Dan Tesch; Director of Finance, Al Rolek; 14 Director of Public Safety, Dave Pecchia; Director of Public Services, Rick DeGardner; 15 Director of Community Development, Michael Grochala; Kent Strege, Police Captain; 16 City Clerk, Julie Bartell 17 18 Mayor Bergeson called the meeting to order at 6:05 p.m. in the Council Workroom at 19 Lino Lakes City Hall. 20 21 Director Rolek reviewed his written report. He outlined the challenges facing the city's 22 budget including a national recession, a contracting city tax base, an ailing housing 23 market and decline in building activity and uncertain energy costs. The budget proposed 24 is 2.1 percent lower than that adopted for 2009. The levy presented is higher (up 6.17 %) 25 than the previous year, mainly due to the obligation the city has to repay debt on certain 26 general obligation bonds for which special assessment charges have not been received. 27 He pointed out that the budget presented was scrutinized by the city's management team. 28 Personnel costs are the biggest portion of the budget and no increase is proposed other 29 than in the area of insurance and staff under labor contracts as well as the city council 30 whose salary increases are already approved. The budget presented does not fulfill the 31 council's request to bring forward $1,000,000 in reductions however options for 32 consideration are included in the report. A reduction of $2,000,000 would involve a 33 monumental shift in what services the city delivers. 34 35 Acting Administrator Tesch reported on a possible retirement incentive program. Based 36 on eligibility, the incentive would involve an additional 12 weeks of severance pay (in 37 addition to regular severance) and a $10,000 deposit to a health savings account. Finance 38 Director Rolek pointed out that for the incentive to be an effective budget tool, it would 39 have to occur in 2009. Mr. Tesch will present the details to the council for consideration 40 at the next regular meeting. Police Chief Pecchia was informed that there will no doubt 41 be some type of restriction on what positions would be eligible. 42 43 A council member verified that the downward economic trends will continue to impact 44 city finances for more than just 2010 and that has to drive decisions also. Regarding fund 45 balance, the finance director verified that his opinion is that the use of fund balance down