HomeMy WebLinkAbout08-31-2009 Council Minutes SPECIAL WORK SESSION August 31, 2009
APPROVED
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2 CITY OF LINO LAKES
3 MINUTES
4 SPECIAL WORK SESSION
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6 DATE : August 31, 2009
7 TIME STARTED : 5:30 p.m.
8 TIME ENDED : 6:40 p.m.
9 MEMBERS PRESENT : Council Members Reinert, Stoltz,
10 Gallup, O'Donnell and Mayor Bergeson
11 MEMBERS ABSENT : none
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13 Staff present: Acting City Administrator, Dan Tesch; Director of Finance, Al Rolek;
14 Director of Public Safety, Dave Pecchia; Director of Public Services, Rick DeGardner;
15 Director of Community Development, Michael Grochala; City Clerk, Julie Bartell
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17 Mayor Bergeson called the meeting to order at 5:30 p.m. in the Community Room at
18 Lino Lakes City Hall.
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20 The council continued previous discussions of the 2010 budget proposal.
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22 Finance Director Rolek indicated that, at the last work session, the council had asked for
23 more information in the area of discussion with staff and labor bargaining groups,
24 valuation data from Anoka County, and internal loan funding for the Legacy bond debt
25 service.
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27 Acting Administrator Tesch reported that he had met with labor representatives (LELS,
28 AFSCME and 49ers) with the goal of discussing budget options to avoid employee lay-
29 offs. Everyone is on board as far as looking at furloughs in the area of one to two weeks.
30 He has also discussed the early retirement incentive program details with the unions and
31 feels they are now on board.
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33 Finance Director Rolek provided written information to the council on net tax capacity
34 calculations. He has calculated that each percentage change in rate equals an amount just
35 under$197,000; he presented the levy amount necessary to hold the 2009 tax rate as well
36 as the budget reduction amount needed for that level tax rate. It was clarified that the
37 figures presented are expenditure based with no new revenue included.
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39 A council member requested discussion about the possibility of further delaying the
40 filling of the City Administrator position, recognizing that these are extraordinary times
41 and everything should be on the table. Staff explained that they have included that
42 position in the 2010 budget proposals.
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44 A council member recommended that the first decision point should be the tax rate goal
45 and move from there on a specific budget. Another council member recalled previous
46 discussions about the need to look at decisions on a two-year basis recognizing that more
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SPECIAL WORK SESSION August 31, 2009
APPROVED
47 hard times most likely lay ahead in 2011. That two-year view should include all the
48 pieces, and hard decisions in the area of employees should be made up front and perhaps
49 revenue options such as storm water utility and franchise fees left for next year.
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51 Finance Director Rolek discussed the interfund loan proposed to handle the 2010 debt
52 service on the Legacy bonds. Staff is still assuming that approximately one-half of that
53 debt service will be handled through such a loan, thereby leaving some flexibility for
54 2011.
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56 Regarding the maximum tax rate that will be approved by the council on September 14
57 and forwarded, the council concurred they would go with 38.616 (a reduction). Having
58 that number in place, Mr. Rolek suggested that the council can have more discussion at
59 the September 8 work session on how to budget to represent that figure. The council
60 concurred that the figure is a maximum and the goal is a reduction from that point.
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62 There was a discussion of fund balance and Mr. Rolek asked for clarification that the
63 originally proposed use of$93,377 is on the table. One council member suggested that
64 the maximum rate discussion leaves the fund balance at a different figure. Another
65 member said he believes that fund balance represents levied but unused tax funds that
66 should be returned to the taxpayers (or to use the funds as part of a future budget). A
67 third council member suggested that he doesn't support use of fund balance at all—it
68 isn't a prudent budgeting tool. A majority of the council agreed to leave the $93,377 on
69 the table but with further discussion and review of fund balance.
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71 Regarding implementation of revenue options, staff remarked that they could begin the
72 review process but wouldn't recommend planning on any revenue for 2010—2011 would
73 be more realistic.
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75 On Mr. Rolek's question about presenting options for(partial or fully) funding internally
76 the debt service on the Legacy bonds, the council requested that staff report back on the
77 status of the project and options to get things moving.
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79 The meeting was adjourned at 6:40 p.m.
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81 These minutes were considered and approved at the regular Council meeting held on September
82 28, 2009.
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86 6.6telerL2
87 City Clerk, Julianne Bartell Jo ►�°.erges , Mayor
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