HomeMy WebLinkAbout11-10-2010 Council Minutes • F
CITY COUNCIL WORK SESSION November 10,2010
APPROVED
1 CITY OF LINO LAKES
2 MINUTES
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4 DATE : November 10,2010
5 TIME STARTED : 6:23 p.m.
6 TIME ENDED : 7:58 p.m.
7 MEMBERS PRESENT : Councilmember Gallup, O'Donnell,
8 Rafferty, Roeser and Mayor Reinert
9 MEMBERS ABSENT : None
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12 Staff members present: City Administrator Jeff Karlson; Director of Administration Dan
13 Tesch; Community Development Director Michael Grochala; Director of Public Safety
14 Kent Strege; Director of Finance Al Rolek; Director of Public Services Rick DeGardner;
15 City Clerk, Julie Bartell.
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17 1. 2011 Budget Cuts—Administrator Karlson distributed written information to the
18 council. He reviewed a tax levy recap indicating the proposed tax levy,the adopted
19 preliminary levy and the amount need to balance the 2011 budget. He reviewed the list of
20 budget cuts proposed by the city's department directors, specifically explaining the
21 adjustments being suggested for employee health insurance.
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Li iv 23 2. Estimate of Future Tax Levy Impact—Finance Director Rolek reviewed the
24 information he had prepared regarding future tax levy impacts. The council reviewed
25 with Mr. Rolek charts indicating net tax capacity calculation estimates through 2012, as
26 well as net tax capacity rate calculations estimated through 2012 and including certain
27 variables (i.e. health care, wage increases).
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29 The mayor, in reviewing the proposed budget cuts, noted his concern about a reduction in
30 the fund reserve and capital equipment levy. A council member pointed out that even
31 with the proposed $100,000 reduction in fund reserve, the city's reserve will still increase
32 from 2010 to 2011.
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34 A council member noted the reduction of positions in the police department and received
35 confirmation that the reduction would not violate the terms of a grant agreement under
36 which that department is receiving funds. It was further clarified that with the reduction
37 of one Community Service Officer position, the city will still maintain three of those
38 positions. Chief Strege added that the department would intend to move some officers
39 around to ensure that patrol functions are fully covered, including the possible
40 reassignment of the officer from the Violent Offenders Task Force. Chief Strege also
41 suggested that, if the budget cuts proceed, some services in the department such as the
42 Citizens Academy may be shifted to a later date.
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44 A council member expressed some concern about the amount of budget detail with which
45 the council has been able to engage. He'd like to be able to see the budget more on the
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. * CITY COUNCIL WORK SESSION November 10,2010
APPROVED
46 basis of needs versus organization. He has some concern about the process but
47 understands that a decision has to be made and he appreciates staffs reduction
48 recommendations.
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50 Administrator Karlson asked the council to remember that there are some requirements
51 involved in the process(i.e. bargaining agreements) and overall the city is dealing with a
52 down economy that is improving very slowly; it comes down to the council deciding what
53 services the city should offer and if some services are to be eliminated, and that equates to
54 staff positions. He noted that there is a$75,000 contingency built into the budget that
55 could also be offered as a cut. Past that, cuts will involve the elimination of some
56 services.
57
58 A council member commented on the 2010 mandatory employee furloughs. Since the
59 city functioned without the 1.5 FTE that the furlough hours represent, doesn't it make
60 sense that a reduction of that size could occur without service cuts? Further the
61 advancements in technology have improved service delivery and efficiency. The
62 organizational review that is forthcoming should help to reveal more efficiencies.
63
64 Administrator Karlson further explained that each staff position cut equals 2,000 hours
65 lost and those hours represent services at some level. He asked the council to review the
66 proposed budget cuts and then discuss if more reduction is needed.
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68 The mayor remarked that the goal isn't to simply seek reductions but to identify
69 inefficiencies or redundancies that can be eliminated. There must be less activity at city
70 hall with the downturn in the economy. It will be difficult to do a lot more without the
71 tools and knowledge about the organization. He acknowledged that council members
72 have been bringing forward ideas.
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74 Administrator Karlson suggested that he would sit down with the directors again for more
75 review of the proposed budget.
76
77 On the question of the proposed reduction in fund reserve,the majority of council
78 members supported the proposal. On the question of the capital levy reduction, a
79 majority of the council did not support it as a reduction. On the question of the $75,000
80 budget contingency, Finance Director Rolek explained that while the amount is seen as a
81 minimum for a contingency, a contingency was not used for 2010 and the fund reserves
82 do serve as a back-up.
83
84 The mayor reiterated his idea of starting a road reconstruction fund that could be built up
85 to assist in funding reconstruction projects. Staff noted that surplus funds may be
86 available at the end of 2010 as a possible funding source.
87
88 3. Budget Request from Charter Commission—Administrator Karlson noted that the
89 council's packet for the evening includes the commission's request for funding of$6,500
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CITY COUNCIL WORK SESSION November 10, 2010
APPROVED
90 in 2011 as well as the language from the state statutes indicating that the city's funding
`., 91 obligation is $1,500 yearly.
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93 Council members commented on the difficulty of the coming year's budget, some
94 concern about past expenses of the commission, and that it would be more appropriate to
95 understand first whether or not the council will be requesting the commission to work on
96 any framing and amending that would lead the council to budget more than $1,500
97
98 The council concurred that the $1,500 line item for 2011 is appropriate.
99
100 4. Police Overtime—Administrator Karlson reported that the council requested a
101 discussion about police overtime—could personnel reductions in the department cause an
102 overtime increase and what is the current status of the overtime budget?
103
104 Chief Strege explained that the police department's current overtime budget is $130,000
105 but most of that is reimbursed through services to Eaglebrook Church as well as Safe and
106 Sober and DWI Task Force grants. Through nine months of 2010,the fund has expended
107 only $7,000 of unreimbursed overtime costs and that represents the fund on a consistent
108 year to year basis. He confirmed that there will be a reduction in overtime needs when
109 the improvements are completed at the intersection of I-35E and Main Street.
110
111 5. Closed Meeting to discuss labor negotiation proposals
112
1/4%... 113 The council met in a closed session to consider labor negotiations. Present at the meeting
114 were all council members, City Administrator Karlson and Administration Director Dan
115 Tesch.
116
117 There were no other changes to the regular Council agenda.
118
119 The regular meeting was adjourned at 7:58 p.m.
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121 These minutes were considered, corrected and approved at the regular Council meeting held on
122 December 13, 2010.
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125 AllrA(4.
127 Jun. e Bartell, CI y Cler Jeff r ei - , ayor
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