HomeMy WebLinkAbout10-21-2010 Council Minutes CITY COUNCIL WORK SESSION October 21,2010
APPROVED
CITY OF LINO LAKES
2 MINUTES
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4 DATE : October 21,2010
5 TIME STARTED : 5:35 p.m.
6 TIME ENDED : 8:05 p.m.
7 MEMBERS PRESENT : Councilmember Gallup, O'Donnell,
8 Rafferty, Roeser and Mayor Reinert
9 MEMBERS ABSENT : None
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11 Staff members present: City Administrator Jeff Karlson; Director of Administration Dan
12 Tesch; Community Development Director Mike Grochala; Director of Public Services
13 Rick DeGardner; Finance Director Al Rolek; Director of Public Safety Kent Strege; City
14 Clerk Julie Bartell
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16 The council convened for the purpose of discussing the 2011 City Budget. The agenda
17 and background information were distributed at the beginning of the meeting.
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19 Charter Commission Budget Request—Charter Commissioners Caroline Dahl and
20 James Drennen were present. Mr. Drennen noted that,regarding Charter Commission
21 expenses,they(the commission)have heard that they are limited to reimbursement of
22 "frame and amend" activities only(he noted an email from City Attorney Joseph Langel).
23 The council has received a request from the charter commission for their 2011 budget and
24 they attempted to provide their request in a line item fashion. He reminded the council
25 that every amendment the commission studies costs money, including the even-year
26 election review forwarded by the council. The commission is currently working on up to
27 four amendments to consider for the coming year. He read aloud Minnesota Statute
28 410.06, City Authorization for Charter Commission Expenses, noting that the law allows
29 for the city council to give the commission a budget exceeding $1,500 and also pointed
30 out historical data indicating that the commission has frequently had a budget higher than
31 that amount. He added that the commission is made up of volunteers and they have even
32 begun taking their own minutes. The commission is asking for the funding they need to
33 do their job.
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35 When a council member asked if the commission is interested in recording their meetings
36 so that a city staff member can transcribe the minutes, Mr. Drennen responded that the
37 commission would appreciate any help they can get and added that the biggest part of
38 their need as far as funds is about frame and amend activities and that generally involves
39 the assistance of their attorney. The commission does as much as they possible can on
40 their own. Commissioner Dahl asked when the council would discuss and/or decide on
41 the commission's budget request and the mayor suggested that there will be more budget
42 meetings,perhaps set at the end of this meeting.
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44 2010 Budget Update—Administrator Karlson first reviewed the city's organizational
45 chart.
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CITY COUNCIL WORK SESSION October 21, 2010
APPROVED
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L 47 Finance Director Rolek reviewed the 2010 budget forecast through September 30, 2010,
48 including favorable/unfavorable revenues and expenditures. He noted that with revenue
49 running under at approximately $244,561 and expenditures running with savings of
50 approximately $608,478, the forecasted surplus for 2010 is $363,917. Upon request, Mr.
51 Rolek explained that the city doesn't receive Local Government Aid (LGA) from the state
52 because the city ranks low on the criteria for that funding(i.e. age of housing, population
53 growth, economic vitality).
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55 2011 Budget Discussion—Finance Director Rolek noted that staff is presenting(in their
56 report)possible budget reductions for the council's consideration. He reviewed the list,
57 noting that it totals $572,231 or about $50,000 below the figure needed to balance the
58 budget. He also noted that the list includes a proposal to eliminate the Public Works
59 Superintendent position(to be vacated by a retirement) as well as eliminate the Natural
60 Resource Specialist position and create a Streets Supervisor position. Also the Senior
61 Coordinator position would be eliminated under this proposal with some of the duties
62 transferred to a Recreation Supervisor already in place.
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64 A council member remarked that the proposed reductions include less levy funding for
65 capital equipment and wondered how the city can keep up with its capital equipment
66 needs with such a reduction. Mr. Rolek explained that debt funding can be substituted.
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68 Administrator Karlson reviewed a chart that indicated the city's total full time equivalent
69 (FTE)positions (non-police) over the past ten years. He noted that the spike in personnel
70 between 2004 and 2009 is not necessarily attributed to population growth but rather some
71 grant funding and natural resource mandates.
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73 It was confirmed for a council member that there would be no loss of services with the
74 restructured Street Supervisor position; some of the duties of the Public Works
75 Superintendent position would be shifted to the Public Works Director, some to the
76 Environmental Coordinator and some to seasonal workers. Public Services Director
77 DeGardner added that the filling of the new position will be handled as required by the
78 impacted labor union.
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80 When asked about the reduction of two patrol officer positions, Chief Strege explained
81 that the department's major focus on absorbing that loss would be to maintain full
82 staffing for the patrol functions. That may mean that the city's officer assigned to the
83 Violent Offender Task Force would be pulled back as well as some school related
84 functions realigned. Chief Strege said the department is being creative and will make it
85 successful if that is the direction of the council.
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87 The mayor acknowledged the creativity of staff in the reductions presented; it must be a
88 team effort that brings the city through the difficult economic times.
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CITY COUNCIL WORK SESSION October 21,2010
APPROVED
90 The council reviewed the police department's ten year FTE Chart. Chief Strege
91 explained that there are five sergeant positions currently, not all assigned geographically
92 since adjustments must sometimes occur to ensure proper supervision. The council
93 discussed the number of squad cars (there are 10 marked cars) and the number on the
94 street at any given time(normally 2-3).
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96 The council moved to discussion of the capital equipment levy. Mr. Rolek noted that the
97 budget includes equipment replacement for public services as well as public safety and a
98 contribution to the Centennial Fire District budget for their equipment replacement plan.
99 There was a review of the formula used by the fire district for funding from the three
100 cities they serve. The mayor noted the benefit of having the capital replacement fund - it
101 allows the city to save the interest on borrowing money to buy equipment as well as not
102 lose interest on funds being held for purchases; he would be in favor of increasing that
103 fund rather than decreasing.
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105 The council discussed the energy savings item. The improvements will be paid for(no
106 debt used to fund them) so the reduction noted is true savings. The Building and
107 Facilities Fund will be used to fund the improvements. A council member noted that he
108 has received information on the benefits of retrofitting lighting at city hall; lighting costs
109 could be cut in half Public Services Director DeGardner indicated that he has met with
110 the lighting representatives and will provide information to the council in their weekly
111 update.
112
113 The council discussed the employee health insurance budget. Administrator Karlson
114 noted that the city's current insurance provider, HealthPartners, indicated that rates for
115 2011 would go up 17 percent and higher for the HSA (Health Savings Account)plan.
116 Staff received an offer from Medica for a one year contract with a zero percent increase.
117 The council was informed that employee labor union contracts contain language on health
118 insurance, including the waiver option, so that must be a consideration when changes are
119 considered. Staff will be presenting to the council the concept of eliminating the
120 traditional HMO/copay option for employees and offering only the HSA Plan with some
121 minor changes. Staff would like to continue the process by meeting with employees on
122 the subject and continue meeting with the labor unions. Mr. Karlson also distributed
123 information on the city's labor obligations under the PELRA (Public Employees Labor
124 Relations Act) law. A council member remarked that after speaking with several private
125 companies, he found none that offer an employee payment for opting out of coverage;
126 another council member noted discussions with other cities and that he found few that
127 offered an opt out. The council also confirmed that any new federal health care mandates
128 are being considered in discussions. The council will receive an update as negotiations
129 continue.
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131 The council discussed the street reconstruction budget. The mayor noted that he has
132 recommended that the city start building a fund for street reconstruction. He recommends
133 setting aside $250,000 per year, with the idea being to start something and keep it
134 growing. The council concurred that the idea merits further discussion.
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CITY COUNCIL WORK SESSION October 21,2010
APPROVED
135
136 The council discussed the overall 2011 budget. They discussed the need to look for more
137 efficiency and eliminate redundancies. The suggestions for reduction presented by staff
138 make sense overall but the council wishes to reach for the greatest efficiencies (without
139 cutting services)possible. Administrator Karlson will continue to work with the directors
140 on finding efficiencies.
141
142 The council concurred that they would hold a special budget work session on November
143 10, 2010 beginning at 6:15 p.m.
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145 The meeting was adjourned at 8:05 p.m.
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147 These minutes were considered, corrected and approved at the regular Council meeting held on
148 November 22, 2010.
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153 Julia e Bartell, City lerk Jeff Reinert Mayor
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