07-14-2014 Council Budget Workshop Minutes

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COUNCIL MINUTES July 14, 2014 APPROVED 1 CITY OF LINO LAKES 2 MINUTES 3 4 DATE : July 14, 2014 5 TIME STARTED : 5:35 p.m. 6 TIME ENDED : 9:15 p.m. (recessed) 7 MEMBERS PRESENT : Council Member Stoesz, Kusterman, Rafferty, 8 Roeser, and Mayor Reinert 9 MEMBERS ABSENT : None 10 11 Staff members present: City Administrator Jeff Karlson; Community Development Director Michael 12 Grochala; Chief of Police John Swenson; Public Services Director Rick DeGardner; Finance Officer 13 Al Rolek; and City Clerk Julie Bartell 14 15 1. 2015 Budget — Finance Officer Rolek gave an overview of the draft 2015 budget brought 16 forward by staff. He reviewed the amounts included in the budget, the impacts on the budget, the 17 status of construction and development activities and projected revenues. He reviewed the 18 preliminary tax levy, noting that property values have. He explained the elements of the proposed 19 operating levy increase. He noted that the State Legislature does not have a levy limit in place. The 20 staff report included a gap analysis that was reviewed. He noted that health insurance rates (for 21 employees) are not yet known so twenty percent was used for review purposes. The amount the city 22 pays to the Public Employees Retirement Association (PERA) has increased. Revenue changes were 23 reviewed including losing the use of reserve and forfeiture funds. The budget does include some 24 one-time start-up costs for the fire department that are not eligible for bonding. He reviewed the 25 new budget requests. 26 27 Mayor Reinert remarked that the council will do the drill down that they always do. This city has 28 seen value increases before and it isn't appropriate to have the budget creep up to meet the increase. 29 He sees that the increases in the budget represent both one time increases and long term personnel 30 costs. 31 32 Council Member Roeser asked how rent from the newly rented ECFE wing in the city complex is 33 represented in the budget. Finance Officer Rolek explained that it has been understood that those 34 funds would be dedicated to maintaining the complex. Council Member Roeser said he has concern 35 about capital items (such as a fire truck) showing up in one year. Mr. Rolek said that only start up 36 costs are indicated in 2015; items that can be capitalized are spread over time. 37 38 The council discussed the Assistant City Administrator position. There were questions to 39 Administrator Karlson about the proposed salary. Council Member Kusterman noted that the number 40 of applications the city has seen in recent hiring efforts indicates that there may be a lot of interested 41 people out there and the possibility of a lower salary. 42 43 The council discussed use of police forfeiture funds. Chief Swenson explained that federal rules 44 dictate use of that money to fund a police position for one year only. That choice was made for 2014. 45