HomeMy WebLinkAbout11/28/1990 Council Minutes1
COUNCIL BUDGET WORRSESSION 28 NOVEMBER 1990
Mayor Harold Bisel called the City Council Budget Work
Session to order at 4:15 P.M., Wednesday 28 November 1990.
Members Present: Kuether, Reinert, Bohjanen. Randy
Schumacher, City Administrator, Daniel Tesch, Assistant to
the City Administrator, and Paula Schloer, City Accountant
were also present. Council Member Neil arrived at 4:40 P.M.
Mr. Schumacher began the meeting by explaining the state's
budgetary climate. The League of Minnesota Cities had held a
session the day before which outlined the bleak future for
municipalities in Minnesota. Fiscal disparities, new tax
classes, levy limits, and a new comparable worth law are all
up for review.
Mayor Bisel questioned Mr. Schumacher as to whether or not
our representatives in the legislature would be able to
attend our meeting. Representative Quinn had phoned his
regrets, Senator Dahl had not responded to our invitation.
It was the concensus of the council that their strategy for
the upcoming public hearing on the budget be basic, easy to
understand, factual, and to create charts that the public
would be able to follow.
Mr. Schumacher reiterated how complicated the budget process
had become, especially in the areas of revenue. Ms. Schloer
pointed out that the state has had problems with their
computers, and getting reliable figures on our HACA credits
has been very slow.
Council Member Reinert stated that the city should respond to
the economy, and operate frugally and control it's internal
costs. With the exception of the fire hall, which is
mandated, we should tighten our belts. Mr. Schumacher stated
that he and Ms. Schloer had already gone through the
preliminary August budget, and had made significant cuts. He
added that they have not been popular with department heads.
Mr. Schumacher reported that capital outlay had been reduced
from a proposed August level of $408,000.00 to $88,000.00,
$27,000.00 of which is squad cars. Mayor Bisel stated that
he did not want to be so frugal that we would be hit with a
huge bill for equipment in a few years. We need to make
smart cuts. Mr. Schumacher reported that he had already
brought down the proposed levy increase from 21.8% in August
to $14% in November.
Mr. Reinert asked Mr. Schumacher if it would be possible add
a percentage column off to the right of the worksheet which
would note what percentage increase or decrease is being
proposed. Mr. Schumacher responded that would be possible,
and would be adjusted in time for the next meeting.
Ms. Schloer handed out the August "preliminary budget" which
represented the department head wish lists. The Council then
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received the "adjusted preliminary budget" of November which
showed staff cuts to date. Mr. Reinert questioned when the
Council would be able to have input into the budget. Mr.
Schumacher responded that the council could have as many
meetings on the budget as it felt was necessary. Tomorrow
night would be the public hearing in which the council would
listen to public response. The council would then take the
information they received from the public, as well as staff
recommendations, (received by the council this evening) and
based on that knowledge schedule work sessions to modify the
budget as they saw fit.
Mr. Schumacher presented an example to the council of how the
city has affected taxes on an $85,000.00 house between the
years of 1985 and 1990. The example was as follows:
CITY PORTION OF TAX
$85,000.00 HOME
1985 - $299.54
1986 - $307.13
1987 - $296.69
1988 - $312.36
1989 - $245.39
1990 - $240.73
1991 - $291.21 (AUGUST PRELIMINARY EST.)
Mr. Schumacher explained that while taxes may have to go in
1991, taxes could possible stay below what they were in 1988.
The council reviewed Mr. Schumacher's example and inquired as
to the school districts portion's. Mr. Schumacher responded
that he can only predict the city's portion.
Mayor Bisel played devil's advocate and fielded questions to
the council.
Mr. Reinert again voiced his opinion that he feels left out
of the budget process. Mr. Schumacher assured Mr. Reinert
that he should take the budget home, study it, and would have
ample time down the road to make recommendations on line
items. Mr. Schumacher asked the council to consider date for
their next budget work session. Mr. Reinert stated that he
understood that the August budget was preliminary, but wishes
he had received the August preliminary budget earlier.
Mr. Schumacher stated that he would now go through the
"adjusted preliminary budget" department by department.
Mr. Schumacher began with Mayor and Council and proceeded
through the departments explaining any significant changes in
programs. Administration's only change would be the addition
of a Finance Director (authorized this past year); Forestry
would see the moving over of one salary from Public Works;
Police would increase in salaries due to the contract. Mr.
Reinert questioned why we would not see a savings due to the
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COUNCIL BUDGET WORRSESSION 28 NOVEMBER 1990
fact that we are no longer covering Centerville. Mr.
Schumacher that costs would not go down as we will still have
the same equipment and number of officers. He added that
service will improve for the residents of Lino Lakes.
The work session was adjourned at 7:30 P.M.
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