HomeMy WebLinkAbout08-13-2012 Council Special Work Session Minutes CITY COUNCIL SPECIAL WORK SESSION August 13, 2012
APPROVED
CITY OF LINO LAKES
2 MINUTES
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4 DATE : August 13,2012
5 TIME STARTED : 8:00 p.m.
6 TIME ENDED : 9:25 p.m.
7 MEMBERS PRESENT : Council Member O'Donnell,
8 Rafferty,Roeser and Mayor Reinert
9 MEMBERS ABSENT : Council Member Stoesz
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11 Staff members present: City Administrator Jeff Karlson; Community Development
12 Director Michael Grochala; Public Services Director Rick De Gardner; Finance Director
13 Al Rolek; Public Safety Director Swenson; City Clerk Julie Bartell
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15 The-special meeting was called for the purpose of discussing the 2013 Budget.
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17 1. Budget Gap -Finance Director Rolek noted that the draft budget presented to the
18 council is slightly lower for 2013 than the 2012 budget. That being said, there is a gap in
19 excess of$400,000, related to use of one time funds in 2012, reductions in non-tax
20 revenues (primarily building permit revenue), an increase in pavement management
21 funding, and an increase in capital equipment replacement. Some offset to the negative
22 gap are a tax shift and reductions in the budget. Staff has started with the assumption
23 that the levy will remain constant from 2012 to 2013, with that levy being under the state
24 tax cap set for the city in 2011. Mr. Rolek explained that with the decrease in property
25 valuation,maintaining the levy would increase the tax rate. To hold the same rate would
26 require in excess of an additional $500,000 in revenue increases or expenditure decreases.
27 Regarding labor settlements,the budget assumes a one percent increase across the board.
28 Additionally noted is inclusion of a$75,000 contingency for the year.
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30 2. Projected Voting Equipment System Costs -Administrator Karlson noted that a
31 voting equipment expense will need to be added to the budget. Anoka County will be
32 purchasing the equipment for cities and receiving repayment over a ten year period.
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34 3. Potential Revenue Sources—Administration Karlson noted information on franchise
35 fees and updated the council on negotiations with CenterPoint and Xcel. A city wide
36 franchise fee for gas utilities is an item to be discussed;the current budget includes a
37 presumption of about$90,000 as the amount the city currently receives from Centennial
38 Utilities only. Council Member O'Donnell expressed concern and suggested that the
39 $90,000 should not be included in the budget.
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41 Administrator Karlson said he asked the Public Services Director to look for additional
42 revenue in parks and recreation program fees since the city does subsidize the cost of the
43 programs. That is not a large item,however, and would probably fall in the area of
44 $10,000.
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CITY COUNCIL SPECIAL WORK SESSION August 13, 2012
APPROVED
46 4. Transfer of Expenses from Utilities (e.g. motor fuels, repairs)—Administrator
47 Karlson noted that Mr. DeGardner will be studying the possibility of transferring some
48 expenses but again it won't have a large impact. Director Rolek added that there is
49 justification for such a transfer since enterprise funds should be carrying expenses related
50 to their operation.
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52 The mayor asked for an update on snow removal costs and Mr. DeGardner first warned
53 that the year isn't yet complete but suggested that if there is no requirement for snow
54 removal for the rest of 2012 or perhaps never outside of regular hours,there could be cost
55 savings.
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57 The council discussed plans for police car replacement. Police Chief Swenson outlined
58 the plans for replacement as well as required equipment for the cars; the department will
59 be able to utilize forfeiture funds for a portion of the equipment.
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61 5. Positions Eliminated 2010-2012—Administrator Karlson-noted a list prepared
62 indicating the history of eliminated positions,totaling almost 13. Clearly personnel is a
63 large part of the city budget and the management team is reviewing options. Mr. Karlson
64 stated that additional personnel cuts would impact the ability to deliver services in a
65 noticeable way. Council Member Roeser suggested exploring opportunities for services
66 for less cost; the janitorial change has worked out and he also suggests considering
67 sharing or selling services with other cities that creates an economy of scale. Public
68 Services Director DeGardner pointed out that public works staff is well cross trained so
69 contracting for individual services doesn't pan out well.
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71 Summary of discussion - The budget gap was determined to be about 5.8% of the budget
72 and Council Member O'Donnell suggested a challenge to staff to deal with that, including
73 going to the labor unions for their participation in addressing the gap. Administrator
74 Karlson suggested that there will not be a"magic bullet"and personnel and services are
75 where things will probably have to land. The mayor called_for recommendations and-
76 options so that the council can make the decisions; the options should total more than the
77 gap so there is room for decisions.
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79 The meeting was adjourned at 9:25 p.m.
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81 These minutes were considered,-corrected and approved at the regular Council meeting held-on
82 August 27, 2012.
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86 __i• _ _ _ A_
87 Ju i; e Bartell, 1 ity - k Jeff R.in-rt. Mayor
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