HomeMy WebLinkAbout08-15-2011 Council Minutes CITY COUNCIL WORK SESSION August 15,2011
APPROVED
1 CITY OF LINO LAKES
2 MINUTES
3
4 DATE : August 15, 2011
5 TIME STARTED : 5:35 p.m.
6 TIME ENDED : 7:40 p.m.
7 MEMBERS PRESENT : Council Member Gallup, Rafferty,Roeser
8 and Mayor Reinert
9 MEMBERS ABSENT : Council Member O'Donnell
10
11 Staff members present: City Administrator Jeff Karlson; Public Services Director Rick
12 DeGardner; Community Development Director Mike Grochala; Director of
13 Administration Dan Tesch; Public Safety Director John Swenson; Director of Finance Al
14 Rolek; City Clerk Julie Bartell
15
16 2012 Budget—Administrator Karlson noted that the council previously reviewed the
17 proposed budget and staff is responding with information on possibilities to fill the
18 budget gap between proposed revenue and expenditures in the amount of$281,000
19 (written information distributed). He also has health insurance figures that will be
20 presented for discussion.
21
22 Finance Director Rolek reviewed the list of items that could offset the gap including
23 results of the organizational review, a lesser than expected increase in health insurance
�-' 24 costs, and change in janitorial services. The lease revenue for the ECFE portion of the
25 city facility is being deducted (one half year) since there isn't certainty at this point that
26 the lease will continue after mid-year. That leaves a gap of about $76,000. Mr. Rolek
27 then reviewed items presented as possibilities to reduce that cap including a change to the
28 capital equipment levy, use of fund reserves, a reduction in the cost of civil and criminal
29 legal costs, and employee furloughs. Shared services and cooperative agreements are a
30 good long term approach and possibilities in that area being explored however that can't
31 help much in the short term. Mr. Rolek noted that personnel costs are the biggest part of
32 the city's budget. Administrator Karlson asked the council to keep in mind that most city
33 employees are union represented so many changes must be negotiated.
34
35 Health insurance costs were discussed. Administrator Karlson distributed a chart
36 indicating current and 2012 costs and percentages. The figures use a presumed increase
37 of 14% (actual increase is not yet known). He indicated that the city's HSA contribution
38 and the employee cost for single coverage is guaranteed under contract through 2012 so
39 wouldn't be areas the council should consider changing. The Mayor indicated that he
40 understands it is difficult to make changes for 2012 but he is interested in what can be
41 done with the following year, including understanding what other cities are doing. A
42 council member noted that government has to be a leader in the area and get the best
43 bargain for the money spent; he sees some reduction the city contribution to the HSA
44 account as a future possibility as well as the city paying a lower percentage of the
45 premium. The council also discussed the waiver of coverage option. The council
1
CITY COUNCIL WORK SESSION August 15,2011
APPROVED
46 concurred to drop the city contribution to the family coverage premium to 82% and the
47 waiver of coverage to 60%.
48
49 The Police Department budget was discussed. A council member noted that the police
50 department budget seems to be going up in the area of 7 percent, with the
51 acknowledgement that some grant money isn't included this year. The city administrator
52 noted that last year the council decided not to fill two vacant positions in the department
53 and that continues to be the case. The police chief explained his discussions with area
54 departments about sharing services. Chief Swenson also explained the capital outlay item
55 included in his proposed budget that basically represents a copier, tasers, a radar unit and
56 some laptop computers.
57
58 Other areas of the budget were briefly discussed, including professional services line
59 items and facility electricity costs and the possibility of retrofitting,
60
61 The city's budget for civil legal services was discussed and Administrator Karlson
62 confirmed that staff will make the $5,000 reduction that represents a reduction of about
63 half of the council meetings that the city attorney will attend. On criminal legal fees,
64 Administrator Karlson explained staff's efforts underway to lower the contract cost for
65 those services, either through the current provider or through a change.
66
67 Finance Director Rolek confirmed that the proposed budget contains a contingency of
68 $75,000. He doesn't anticipate any level of savings for the 2011 budget. The proposed
" 69 budget contains a 2% cost of living increase for employees.
70
71 The mayor asked the city administrator if he is nervous about any area of the budget. Mr.
72 Karlson explained that his objective in completing an organizational assessment was to
73 see what could be cut today and still provide primary core services. Additional personnel
74 adjustments would impact what the city is able to do. The police chief noted that he is
75 working on shift configurations to address some coverage concerns.
76
77 The mayor noted that the budget presented proposes an increase to the tax rate and he
78 thought he had communicated to staff that he is interested in keeping that rate flat.
79 Finance Director Rolek explained that keeping the tax rate flat would require an
80 additional $430,000 in reductions or revenue.
81
82 The council will hold another special work session on August 22 to continue discussion
83 of the 2012 budget.
84
85 The meeting was adjourned at 7:40 p.m.
86
87 These minutes were considered, corrected and approved at the regular Council meeting held on
88 September 12, 2011.
89
90
2
CITY COUNCIL WORK SESSION • ugust 15, 2011
APPROVED
91
92 Julian l e Bartell, Cit Cler Je 'R-inert, Mayor
93
3