HomeMy WebLinkAbout05-21-2012 Council Meeting Minutes , CITY COUNCIL WORK SESSION May 21, 2012
APPROVED
1 CITY OF LINO LAKES
2 MINUTES
3
4 DATE : May 21,2012
5 TIME STARTED : 6:05 p.m.
6 TIME ENDED : 7:52 p.m.
7 MEMBERS PRESENT : Council Member Stoesz, Rafferty, Roeser
8 and Mayor Reinert
9 MEMBERS ABSENT : Council Member O'Donnell
10
11 Staff members present: City Administrator Jeff Karlson; Community Development
12 Director Michael Grochala; Public Services Director Rick DeGardner; Public Safety
13 Director John Swenson; Finance Director Al Rolek; City Clerk Julie Bartell
14
15 City Administrator Karlson remarked that he would like for the council to start by
16 looking at the most recent city Five Year Plan (not adopted) and add to that a snapshot of
17 things learned since that Plan was prepared. Staff is interested in hearing about the
18 council's priorities. Mr. Karlson then reviewed the agenda items.
19
20 1. 2011-2012 Organizational Assessment
21 2. 2009-2012 Staff Reductions (13.75 employees)
L 22 3. Council/Staff Priorities
23 Mr. Karlson noted that he prepared an organizational assessment in 2011 and the Police
24 Chief recently completed an assessment specific to that department. Those assessments
25 provided good information and led the way to ending certain redundancies and gaining
26 more efficiency in the city work force,without dramatically impacting city service levels.
27 Overall, and including the recently approved reduction within the Police Department, the
28 reductions total 13.75 Full Time Equivalent positions. Mr. Karlson noted that it will be
29 increasingly difficult to maintain the same level of services with the reduction of
30 additional personnel. Mr. Karlson noted that staff is seeking direction from the council in
31 light of that consideration as well as other items that could impact the 2013 budget.
32
33 4. 2013 Budget Impacts
34 • Taxable Market Value (7% reduction for Payable 2013)
35 • Recreation Complex($300,000)
36 • Street Reconstruction ($50,000 Incr.)
37 • Capital Equipment Replacement($75,000 Incr.)
38 • Wage Increases @ 2% ($106,500)
39 • Centennial Utilities' Franchise (23,000)
40 • ECFE Space ($60,000)
41 • Anoka Co. Salt Storage Shed ($75,000)
42 • Lake/Main & Birch/Ware Signalization Projects ($173,000)
1
CITY COUNCIL WORK SESSION May 21, 2012
APPROVED
43 • Proposed Levy Cap (?)
44 Mr. Karlson stated that last year the city faced a budget gap of about half a million dollars
45 but met the challenge to not raise taxes. That did require the use of some surplus funds.
46 For this coming year, the management team is discussing all of the above items (he
47 reviewed the list). Based on possible expenditures and a reduction in revenues, the 2013
48 budget gap with the tax levy unchanged would be about $864,000.
49 The mayor suggested that a two percent wage increase projection isn't accurate according
50 to current discussions.
51 Council Member Roeser recalled, regarding the salt storage facility, that the city has an
52 outstanding grant to implement an alternative; wouldn't that eliminate the need for a salt
53 storage facility? Public Services Director DeGardner explained that the salt facility
54 would still be needed and that the project would be financially advantageous to the city.
55 Council Member Rafferty asked about the proposed increase in the Capital Equipment
56 Replacement Program and staff explained that there is a plan is place to reduce/eliminate
57 the cost of borrowing for equipment replacement by fully budgeting for the costs rather
58 than borrowing. Each year the amount committed to purchase is being increased.
59 Council Member Roeser asked if there is outstanding debt that will be retired soon thus
60 ending budget obligations for debt service? Mr. Rolek explained there won't be debt
61 retired until after 2013.
62 Council Member Stoesz asked about the possibility of leasing equipment and Mr. Rolek
63 explained that leasing options have been explored in the past and not found to be a good
64 option.
65 5. Summary of Fund Balance
66 Finance Director Rolek then distributed the most recently considered(but not adopted)
67 Five Year Plan. He noted that the city hasn't officially begun the 2013 budget process.
68 He directed attention to the estimated levy figures and projections included within those
69 figures. The figures include increased costs in terms of such things as tools, contracts and
70 personnel costs. The other items that would have an impact(as had been noted by
71 Administrator Karlson) are also included in the projections. When the mayor asked if a
72 surplus is anticipated in 2012, Mr. Rolek said no and added that the upcoming audit
73 report will include information on the fund reserve (accumulated surplus)that was
74 budgeted for use in 2012 and how much has been spent. Mr. Rolek then distributed a
75 fund surplus analysis and reviewed how the surplus has ranged from 1998 until present as
76 well as those items projected to impact the 2012 surplus.
77 6. 2013 Budget Priorities
78 Administrator Karlson said staff is asking the council how they would like the city to face
79 a likely budget gap and to identify their priorities if there are to be budget cuts. The
80 mayor suggested that what the council has done in the past is to find efficiencies and to
81 bring the level of resources authorized down to the level of activity in the city. The
82 mayor further suggested that the council will have to see the numbers before they can
2
CITY COUNCIL WORK SESSION May 21, 2012
APPROVED
83 fully understand a gap. The council discussed the perspective of not focusing on a levy
L 84 number but rather on needs and the cost of those needs. Administrator Karlson noted
85 that the council will want to see revenues and expenditures and work with the budget
86 from there. The mayor suggested that a direction to staff is to show the council how they
87 can maintain the same level of services to residents as in 2012; he'd like to see if there are
88 any services that are being provided that are obsolete. Council Member Stoesz added that
89 he'd like to receive a graph that indicates who (residents) benefits from what elements of
90 the city budget.
91 The council discussed possible savings in the snow plowing budget and heard that the
92 spending of those funds isn't final until the end of the year. When asked if forfeiture
93 funds will be available, Chief Swenson explained that use of those funds is strictly
94 controlled under law. Suggestions from Council Member Roeser: consider new revenue
95 from newly built homes in the city, leasing of equipment to other jurisdictions,
96 outsourcing if called for by wage increases, and health care alternatives.
97 Council Member Rafferty asked for a breakdown of the 13.75 positions, how and where
98 did they go. He would also like to see information on best practice on how long to keep
99 equipment.
100 Council and staff discussed the unpredictable variables such as a tax cap. The variables
101 have to be considered as much as possible in case they do happen.
102 Administrator Karlson noted that staff is still looking for efficiencies and will present a
103 preliminary budget in late July. Council Member Rafferty suggested that he'd like to
104 have information as early as possible because the more review the council can do,the
105 better informed the decisions.
106 Council Member Stoesz added that he is interested in increasing the IT efficiency of the
107 city, such as by providing more city information and forms on-line. He suggests that
108 resident visits to city hall be logged so as to determine the best way to provide those
109 services they need on-line. Administrator Karlson pointed out that there are some IT
110 projects underway right now that are demanding much time so it may be difficult to
111 engage new IT efforts now. Specifically the document imaging conversion project will
112 be a huge efficiency but since the project is being undertaken without outside assistance,
113 it is challenging. The mayor added that the council needs to hear about challenges to
114 projects; the council supports greater improvement and efficiencies but understands the
115 stress of more work with less employees.
116 Council Member Roeser suggested that interns (paid or otherwise)may be a good
117 resource for the city right now. He also noted that the city should be seeing some energy
118 savings through recent retrofits.
119 The council concurred that they would continue the discussion at a special work session
120 on June 25, 2012 after the regular council meeting.
121
122 The meeting was adjourned at 7:52 p.m.
123
3
CITY COUNCIL WORK SESSION May 21, 2012
APPROVED
124 These minutes were considered, corrected and approved at the regular Council meeting held on
125 June 11, 2012.
_
126
127
128
1.•
130 e Bartell, City lerk Jeff 'ei -rt,Mayor
131
4