Loading...
HomeMy WebLinkAbout09/23/1985 Council Minutes096: BUDGET WORKSHOP September 23, 1985 A special meeting of the Lino Lakes City Council was called to order by Mayor Benson at 5:40 P.M., September 23, 1985. Council members present: Bohjanen, Reinert, Marier, and Kulaszewicz. Chief of Police, Dean Campbell; Accountant, Joe Huss; Building Official, Pete Kluegel; Public Works Director, Don Volk; Admin- istrator, Randy Schumacher and Clerk- Treasurer, Marilyn Anderson were also present. Mr. Schumacher explained that the sole purpose of this workshop was to take a look at what the department heads feel they would like to have in their budgets for budget and program changes for 1986. This workshop will allow the department heads to explain to the Council what they feel is best for their department. He asked the Council to listen to what they have to say, take the preliminary document home, evaluate it and prioritize a policy budget for the department heads to work with in the future. He explained the only decision that has to be made is that a levy will have to be certified to the County before October 10, 1985. The 1985 levy as projected on the receipts portion of the pre- liminary budget is $845,000 and this will keep the mill rate as it was in 1984. This figure may change somewhat when all fig- ures are received from the County later this week. The present mill rate is 26.4 and was the same in the prior year. He is suggesting that another workshop be set for September 30, 1985 to go over this information again. Mr. Marier said he would not be able to attend the meeting on September 30, 1985. PUBLIC WORKS DEPARTMENT Major Programs: 1) Fourth year of five year overlay program. This program is presently on schedule. At the end of five years there will not be an overlay program but there will be a continuation of the seal coat plan. $163,000. 2) Seal coat program, $52,000. 3) Capital Outlay - based on Capital Improvements Plan (CIP). 1985 CIP was cut from 1985 budget and has been added to the 1986 budget. (a) dump truck and plow equipment, $60,000, (b) four wheel drive truck and plow, $17,000, (c) crack filling machine, $6,000, (d) equipment trailer, $3,000. Don Volk explained the dump truck and plow equipment is a replace- ment of the 1974 Ford dump truck. This old vehicle was not built to be a plow truck and has been expensive to maintain. Presently working fine. Mr. Marier asked Mr. Volk to determine what it has cost the City to maintain the 1974 Ford dump truck for the last two years and list major improvements to the truck. 1 1 1 BUDGET WORNHOP September 23, 185 Page Two Mayor Benson asked if it would be possible to find a four or five year old truck that would serve the needs of this City of possibly one -third the cost. Mr. Volk said this was possible. However, it would not be likely to find a truck with all the equipment on it. Most used county, state or city plow trucks are pretty well used up. It could be possible to find a used truck and hang the plow equipment on it. Mayor Benson asked Mr. Volk to get some figures on this proposal. Mr. Reinert asked what the life expectancy of a new truck would be and what its salvage value would be. Mr. Volk expected it to be useful for fifteen years and still have some salvage value. Mr. Volk explained that item (b) on the capital improvement list is a replacement for the current 1976 pickup. This truck is fall- ing apart and is used for plowing cul -de -sacs. Mr. Reinert asked Mr. Volk to prepare figures showing purchasing and maintaining a new truck over fifteen years compared to pur- chasing a used truck, revamping it and maintaining it for the balance of its life expectancy. Mayor Benson suggested contacting construction companies who are selling some of their equipment. Mr. Volk explained the need for a crack filling machine. He plans to seal coat each street every five years. However, cracks should be filled as soon as they appear to keep the sub -base from washing away. Mr. Volk explained item (d) of the capital outlay program is a re- placement item. This will carry pieces of equipment from job site to job site. Mayor Benson asked Mr. Volk to prioritize which streets should be seal coated. Mr. Volk explained 1) Oak Lane, 2) Bald Eagle Blvd., 3) 77th Street, 4) Baldwin Lake Road, 5) East Holly, 6) 81st Street W. 097 Mayor Benson asked Mr. Volk to provide the 1985 patching cost figures. Mayor Benson asked why the City was seal coating streets that were only two years old. Mr. Volk explained this puts the initial wear seal coat on the street. It had been suggested that developers be required to do this before the street is accepted for City street maintenance. However, this has not been included in the street po- licy. Mr. Marier asked about Ash Street (County Road J) from Centerville Road to Highway #49. Mr. Volk explained there has been several meetings with Anoka County, Ramsey County and the adjoining cities. O8 BUDGET WO1 KSHOP September 23, 1985 Page Three The last meeting was about six months ago and the two county en- gineers were going to get together and put a plan together for their capital improvements budget. Nothing further has happened. Mr. Marier asked Mr. Volk to follow up on this. Mayor Benson questioned the $1,900 umbrella insurance coverage. Mr. Schumacher explained the cost of the umbrella coverage has risen from $1,700 to $10,000 and this cost is now allocated to all the departments. It is too large a premium for Administra- tion to absorb entirely. Mayor Benson asked why insurance rates have risen so sharply. Mr. Schumacher explained it is a trend in the insurance business and all municipalities are facing the same increases. This City has a very good insurance record. Mr. Marier asked that something be placed in the local newspaper outlining this trend in the insur- ance industry and explain this is not a unique situation in Lino Lakes and not caused by anything the City Officials have or have not done or mismanagement. PARK DEPARTMENT Major Changes: 1) $5,000 - $6,000 increase in salaries. Of this amount $4,000 is for the operation of the beach area in Country Lakes Park. 2) Capital Outlay - $1,500. Tot lots in Arena Acres Park and up date tot lot in Lino Park. Mayor Benson said he had reports that Country Lakes Beach is silt- ing in again. Mr. Volk said he is monitoring this and felt that once this beach is used part of the problem will be solved. The 1985 Capital Improvement Budget is $8,000. Of this $6,000 was budgeted for Country Lakes Park Improvement and $2,000 was budgeted for a rotavotor. To date neither of these items were purchased. FORESTRY Mr. Schumacher explained this item has been maintained as part of the Park Department. However, the program is expanding and it is now treated as a separate department. Major Changes: 1) Increase in salaries to aid senior citizens in the Oak Wilt Pro- gram. 2) Increase in contracted services to aid seniors in removing the diseased trees. D , BUDGET WORKSHOP September 23, 1385 Page Four I Mayor Benson asked if there is money available through grants, CDGB, McKnight etc. Mr. Schumacher will check on this. POLICE DEPARTMENT Major Changes: 1) One new officer. 2) Capital Outlay - two new squads to replace two light blue squads, $25,000 (salvage value of old squads, $7,000); replacement of suburban truck, $14,000, computer $6,000. Chief Campbell explained that presently the city uses four part time officers. This City has grown over the last several years, how- ever the full time police staff has remained the same. The proposed new full time officer would take much of the hours now performed by the part time officers. (Part time officers are available at their convenience). Chief Campbell explained it has been his policy to replace squads when they approach 100,000 miles. Also the recovery costs from sell- ing these vehicles is higher. Chief Campbell explained he plans to replace the suburban with a small or medium size four wheel drive vehicle. This type of vehicle will last longer. It would be used during winter storms as an emer- gency police and medical vehicle as well as uses now assigned to the current suburban. Chief Campbell plans to place the suburban and the two light blue squads out on the Hennepin County Auction. Mayor Benson asked if the present officer staff were maintained, what problem would this cause. Chief Campbell said there would be a pro- blem with availability. There is a problem in filling time when the full time officer is off duty and allows for periods of time where there is no officer on duty because that officer has to go to the Court House or on a call to backup another City. He explained there is still a need for part time officers and has maintained the same amount of part time salaries in his budget. Chief Campbell explained the uses for a computer. He felt it would eliminate the need for extra part time office help. It was explained this computer was for in -house use and would not be tied into state or county systems. There would not be a link between the computer in Administration either. ADMINISTRATION Major Programs: 1) Staff Assistant (Dan Tesch) $13,000. 1, 00 BUDGET WORKSHOP September 23, 1985 Page Five 2) Postage (mailing staff mandate Council Minutes) $2,500. 3) Part time secretary for five days. Mr. Schumacher is working on some additional option funding for these increases rather than taking the money out of the General Fund. CIVIL DEFENSE Major Programs: 1) One civil defense siren $12,000. Mr. Schumacher explained that there presently are no civil defense warning mechanisms in Lino Lakes. He suggested constructing si- rens periodically until the City is sufficiently covered. At the present time there is no grant funding available for these install- ations. In conjunction with this, the proposed Consultant Budget contains $1,500 for a Civil Defense Study. He explained a plan should be prepared before implementing such a costly program. CONSULTANTS Mr. Schumacher explained he has outlined the issues that may come up for review by the Council in 1986: 1) Civil Defense Siren Study - $1,500. 2) Water Storage Expansion Study - $2,000. 3) 4th Avenue Storm Sewer. 4) 80th Street - $4,500. 5) Gas Utility Audit Appraisal - $2,500. 6) Amendments to the Comprehensive Plan - $10,000. 7) Single Audit Act - $1,500. FIRE DEPARTMENT Depreciation costs are not included in this preliminary budget. He does estimate approximately $25,000 for depreciation for 1985 and 1986. Mr. Marier asked that the Fire Department submit a list of their expenditures to date for comparison to the budget. Mayor Benson asked that the doubling of the salaried positions be explained. He also asked that the Capital Outlay be outlined as well as the proposed budget figure for travel and tuition. Mr. Benjamin will be at the regular Council Meeting later this evening and will explain further. 1 1 Mr. Marier asked that the Fire Department submit monthly or quarterly expense reports comparing actual expenses to the budgeted expenses. 1 1 BUDGET WORKSHOP September 23, 1985 Page Six MAYOR AND COUNCIL 1) Public official liability insurance increased over 100 %. 2) Newly elected officials and new employees will be required to contribute to PERA. ELECTIONS AND VOTERS REGISTRATION Major Programs: 1) Primary Election. 2) General Election. 3) Charter Referendum. 4) Portable Voting Machines. Mrs. Anderson explained that she is requesting eight new voting machines for use at St. Joseph's polling place. Currently four booths have to be installed by the Public Works people. ASSESSOR Major Program Changes: 1) Mileage to the court house because the County will no longer mail land subdivisions to her. LEGAL PRINTING Two legal newspapers are included in this budget. Publishing of the Annual Audit and the newsletter are additional costs. GOVERNMENT BUILDINGS Major Changes: 1) Increase in insurance rates. 2) Capital Outlay - conference room cabinets - $3,000, Xerox Col- lator - $700, SASP - $1,000, Furniture - $6,400. The remaining budgets were reviewed. They have no program changes. A surplus was budgeted of $50,000. He expects to exceed $200,000 for a surplus. Mayor Benson requested that the Council receive an updated 1985 Budget Receipts Sheet and Disbursements Sheet. Mayor Benson noted that on the preliminary budget, the receipts do not equal the disbursements. There is a deficit of $296,695. Mr. Schumacher said this deficit can be eliminated two ways: increase 101 BUDGET WORKSHOP September 23, 1985 Page Seven the mill rate or reduce the budget or a combination of both. He asked the Council to study this proposal and another meeting will be scheduled to discuss it in more detail. Mr. Reinert asked if there is any new budget changes that are re- quired by law. Mr. Schumacher said just the single audit require - ment under consultants. Mr. Kulaszewicz moved to adjourn at 6:55 P.M. Mr. Bohjanen seconded the motion. Aye. These minutes were considered, corrected and approved at a regular meeting of the City Council on October 15, 1985. \41.\-c Marilyn Anderson, City Clerk