HomeMy WebLinkAbout11-30-2009 Council Minutes CITY COUNCIL WORK SESSION November 30, 2009
APPROVED
1 CITY OF LINO LAKES
2 MINUTES
3 CITY COUNCIL SPECIAL WORK SESSION
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5 DATE : November 30,2009
6 TIME STARTED : 6:08 p.m.
7 TIME ENDED : 7:50 p.m.
8 MEMBERS PRESENT : Council Members Gallup, O'Donnell,Reinert,
9 Roeser, and Mayor Bergeson
10 MEMBERS ABSENT : none
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13 Also Present: Acting City Administrator Dan Tesch; Finance Director Al Rolek, Director of
14 Public Safety Dave Pecchia; Community Development Director Michael Grochala; Director of
15 Public Services Rick DeGardner; City Engineer Jim Studenski; City Clerk Julie Bartell; Council
16 Member Elect Rob Rafferty
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18 1. 2010 Budget
19 Acting Administrator Tesch updated the council on negotiations with city employee labor
20 groups, specifically in regard to proposed budget furloughs. There is a tentative agreement with
21 the 49ers,he is still working with AFSCME, and the police and police sergeant groups have
22 indicated they are agreeable to participate but no details as yet. Non-union and management are
included already.
24 It was clarified that the city's final 2010 budget approval will be considered at the council
25 meeting on December 14, 2009.
26 Finance Director Rolek noted that the staff report and preliminary budget information that was
27 distributed on November 23 is still accurate. The council had requested additional information
28 on a couple of items. Regarding council member salaries, Mr. Rolek first clarified that the
29 council budget for 2010 currently includes a 3% salary increase that was approved as part of a
30 multi-year salary action. If the council wishes to consider a reduction to their salary, he reported
31 that each 1%reduction would amount to approximately$315.
32 Mr. Rolek then pointed out that the 2010 budget is subject to on-going labor negotiations. If the
33 police were to waive their pending 3% salary increase, that would amount to about $56,000. If
34 they were to include the proposed two-week furlough, that would provide a reduction of about
35 $75,000.
36 Mr. Rolek then explained that the tax rate required for the budget amount suggested by the
37 council in September is now almost a full percentage point lower,based on final calculations.
38 A council member requested that the council restate its goal for the 2010 budget, including an
39 indication of whether this budget will represent putting a band-aid on the situation or will be a
ft.140 real attempt at solving problems and one that looks long-term. He suggested that there are too
CITY COUNCIL WORK SESSION November 30, 2009
APPROVED
41 many short sighted decisions in the proposed budget such as not fully funding equipment
L42 replacement and also temporary reductions(employee furloughs,use of fund reserve) and those
43 actions are financially irresponsible.
44 The council discussed their salary. After a suggestion and some discussion about the amount of
45 savings, the council concurred that they will return to the 2007 rate.
46 Regarding the Police Department budget,Mr. Tesch remarked that the police department is
47 receiving a grant(stimulus money) and an opinion is pending from the grant writers at the state
48 as to whether or not a furlough effort would make the grant be seen as supplanting, an element
49 that is not allowed under the terms of the grant. Police Chief Pecchia added that the grant in
50 question(the amount being in excess of$300,000) shouldn't be jeopardized; he noted that he is
51 not comfortable moving any reductions in the police department past the grant amount because
52 the grant writers have told him that they will not give a written opinion on the supplanting
53 question. He noted other reductions in the department that are outside of officer salary and past
54 the grant amount(such as AFSCME employee furloughs).
55 A council member remarked that the city has a right to receive a written answer to its question
56 and suggested that staff be directed to get that answer.
57 Mr. Rolek continued his review noting that the budget proposals brought forward by staff in
58 August presented budget decreases and revenue increases that fell in the $1 to $2 million range.
59 Since that time and after several discussions with the council, staff was directed to prepare a
60 budget that included debt service for the Legacy bonds through an interfund loan, fewer staff
61 reductions, a two-week furlough instead of one and a direction to discuss possible revenue
62 changes in 2010. If staff is to be directed to include more reductions in the budget, they should
63 be specified by the council at this time. On the question of permanent versus temporary cuts,Mr.
64 Rolek laid out that, of the approximately$500,000 in reductions, about$300,000 is staff
65 reduction(permanent), $50,000 is the joint powers agreement with the school district
66 (permanent) and $144,000 is employee furlough (temporary).
67 The council requested information on what to expect in the coming years for property values.
68 Mr. Rolek explained that the current estimate is in the area of an 8%valuation reduction for 2011
69 payable taxes. He added that less valuation does not reduce the amount of work and the cost of
70 that work to provide city services. If outsourcing is to be considered,he would warn that there
71 can be hidden costs involved. He also suggested that, when considering valuation and tax
72 capacity, there should also be consideration the impact of lower valuation on the amount taxed
73 and also revenue factors in the budget.
74 A council member suggested that permanent cuts to the budget should be determined after a clear
75 view of priorities by the council. He suggests that the council begin its 2011 budget discussions
76 in January. Evaluation of everything at city hall is needed,perhaps by an outside party.
77 A council member suggested that one challenge will be to come up with permanent cuts that
78 don't impact negatively on city services through the loss of personnel; if possible, that process
79 could begin by looking for permanent cuts instead of the employee furlough savings.
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CITY COUNCIL WORK SESSION November 30, 2009
APPROVED
80 Council Member Elect Rob Rafferty distributed information to the council relative to health care
81 costs. The budget indicates that costs have risen unrealistically and he sees opportunity for
82 savings in that area. He will meet with the Finance Officer to discuss his ideas.
83 Council Member Reinert requested that staff provide to him historical information on what the
84 city his historically planned to put into the area of street maintenance and pavement management
85 and what has actually been put in over the past several years.
86 The council concurred that budget discussions will begin early in 2011 and that they are
87 committed to having the necessary discussions for the coming year and the future.
88 The council will continue 2010 budget discussion at the December 7, 2009 work session. In the
89 meantime, council members will submit any and all budget ideas to Acting Administrator Tesch
90 who will turn them around to the full council with information as quickly as possible. The
91 following suggestions were offered: implement new revenue sources during 2010 instead of
92 waiting until the beginning of the next year; and step up promotion of commercial development
93 in the city. It was recommended that staff recommendations should be included also.
94 The meeting was adjourned at 7:50 p.m.
95 These minutes were considered and approved at the regular Council meeting held on December
96 14, 2009.
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100 Julianne artell, City erk John Bergeson, Mayor