HomeMy WebLinkAbout07-26-2021 Council Special Budget Work Session MinutesCITY COUNCIL SPECIAL WORK SESSION
APPROVED
1 CITY OF LINO LAKES
2 MINUTES
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4 DATE July 26, 2021
5 TIME STARTED 7*45 p.m.
6 TIME ENDED 9*30 p.m.
7 MEMBERS PRESENT Council Member Stoesz, Lyden, Ruhland,
8 Cavegn and Mayor Rafferty
9 MEMBERS ABSENT None
10 Staff members present: City Administrator Sarah Cotton; Finance Director Hannah
11 Lynch; Public Services Director Rick DeGardner; Community Development Director
12 Michael Grochala; City Engineer Diane Hankee; Director of Public Safety John Swenson;
13 City Cleric Julie Bartell
14
15 L 2022 Draft Budget & Tax Levy — Finance Director Lynch said staff will present
16 a high level review of the 2022 budget with the intent that this would be a first discussion
17 of 2022 budget plans. She reviewed her written report:
18
19 - 39.43 tax rate approved last December for 2021 (actual certified tax rate was 40.1
20 due to changes at the county level);
21 - Page 6, Gap Analysis, at the bottom identifies a gap to keep a flat tax rate (39.4);
22 - Handout this evening indicates tax implication for certain valuations at different
23 tax rate scenarios;
24
25 Mayor Rafferty noted that the perspective of seeing the impact on property tax payers is
26 very helpful (the handout).
27
28 - Page 2, highlights the operating and debt levy and total proposed for 2022.
29 Accounting change was noted to cut out a transfer,
30 - General Fund Base Budget Increase (Page 11), excluding Others, looking at base
31 budget increase of $375,000 (mainly personnel related);
32
33 Councilmember Stoesz asked if there is any funding included for a community rec center;
34 Ms. Lynch said no.
35
36 - Paid On Call Firefighter wage increase may come forward but is not included;
37 - The 2022 adjustments requested is $830,000 as noted (by department) in the
38 report;
39
40 Mayor Rafferty noted the council's discussions about adequate personnel for fire
41 department duties and the need to look at that wage.
42
43 Councilmember Stoesz asked about the Zoom PD item, is that something new?
44 Administrator Cotton said if it is included in the adjustments, is a new budget item.
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CITY COUNCIL SPECIAL WORK SESSION
APPROVED
45
46 Mayor Rafferty questioned the Alexandra House line item under the Public Safety budget
47 adjustments. Public Safety Director Swenson noted the services provided by the
48 Alexandra House shelter for women who are impacted by domestic violence. Mayor
49 Rafferty remarked that the City hasn't provided funds previously; it's important work but
50 it may be a better fit for county funding.
51
52 - Recreation and Special Events programming —highlighting what was cut during
53 COVID and what is currently not in budgets If the council would like to provide
54 certain events in the city in 2022, staff would recommend a .6 FTE recreation
55 programing position be included in the budget; warming house funding would
56 also have to be added if that service is desired; Federal funding is a possibility for
57 bringing back a position;
58
59 Councilmember Stoesz noted an increase in the WSB & Associates retainer and
60 suggested that figure should be going down. Community Development Director Grochala
61 noted that the retainer amount is strictly for in-house services.
62
63 - Capital Equipment Replacement — trying to move away from indebtedness and
64 toward operating levy funded. Ms. Lynch noted cuts agreed upon by staff before
65 this came forward; she noted the equipment requested;
66 - Mayor Rafferty asked about the cost noted of a police vehicle; he recalls the cost
67 at $56,000; staff explained the figure included now is an estimate and the cost of
68 the build -out is really not known at this point; Mayor Rafferty asked what the
69 Tahoe vehicle would be used for and Director Swenson noted that the Deputy
70 Director would drive this new vehicle and his vehicle would rotate down with one
71 being rotated out; the police vehicles are all used by the police staff. Mayor
72 Rafferty remarked that cross trained personnel have more gear and need more
73 room so, with some changes away from those duties, he wonders about using a
74 smaller police vehicle. Councilmember Lyden noted that the vehicle costs you
75 not just what you pay but what you will get from it when it is sold and he feels
76 - the Tahoe's will make up the extra expense at sale. A councilmember noted that
77 there was an issue with rust (with the Ford vehicles) and Mayor Rafferty
78 explained that there is a better washing system in place to deal with the rust
79 question. Councilmember Cavegn recalled that the council approved the vehicles
80 because they saw the Tahoe as a better vehicle than the Explorers;
81 - Page 4, this year there is a request of 10% in funds for the Street Rehabilitation
82 Program based on the Pavement Management Program;
83 - Surface Water Fund - if a storm water management utility is approved, there
84 would be a revenue impact;
85 - Park and Trail Improvements — requesting the budgeted amount rise to $90,000 to
86 increase that program. Additional funding would allow more work based on
87 recommendations from the Park Board. Councilmember Stoesz asked if
88 extension of the Hodgson trail should be considered; Public Services Director
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CITY COUNCIL SPECIAL WORK SESSION
APPROVED
89 DeGardner noted that would be an excellent addition whoever it would be cost
90 prohibitive without something like a county project providing funding;
91
92 Councilmember Lyden noted that the numbers are tough. He received confirmation that
93 the pickle ball court funding has already been spent.
94
95 - Debt Levy — significant changes (street reconstruction is added);
96 - Some reserves are available — if used, Ms. Lynch said reserves should be used for
97 one-time costs only; $500,000 in General Fund reserves available; Common
98 Bond Funds available but that has been discussed for rec center funding;
99 - Transfers in — Cable funds coming in for the communications specialist.
100
101 In conclusion, Ms. Lynch said that staff brought forward a budget that continues city
102 services.
103
104 Councilmember Ruhland asked about the value increase projection? Ms. Lynch said
105 taxable market value increase estimate is 5.6 %, as provided by the County Assessor.
106
107 Councilmember Stoesz asked staff to forward a template of the handout so that he can
108 create additional scenarios.
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110 Councilmember Ruhland asked about impact on the City's bond rating if reserves are
111 utilized; Ms. Lynch suggested that the $500,000 use would leave the City still within its
112 reserve policy so shouldn't impact the bond rating.
113
114 The council had a discussion about public works facilities.
115
116 Councilmember Lyden said he hasn't voted for a tax increase. He would love to see staff
117 come back at 40.1 % to see what it would look like. Ms. Lynch noted the final scenario in
118 the handout provided; it's a $1.1 gap.
119
120 Staff is asking the council to provide direction on areas to cut. Councilmember Lyden
121 suggested that staff has a better knowledge and he'd like to receive their
122 recommendations. Administrator Cotton suggested that she'd recommend that staff have
123 the opportunity to present information on what is needed. Mayor Rafferty remarked that
124 he sees that staff is looking for guidance; he doesn't think that 41 is an unrealistic number
125 based on the needs. Councilmember Lyden said he would like information on the tax
126 rate of other communities. Councilmember Cavegn suggested he could use more detail
127 on many of the items, noting fire services in particular and he also noted the half time
128 building inspector.
129
130 Councilmember Ruhland asked if the current drought conditions shouldn't help get storm
131 water maintenance work done in an easier fashion. Staff will investigate.
132
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133 Staff noted that the impact of adding the storm water utility would be revenue of
134 $300,000.
135
136 Councilmember Stoesz asked if contracting for park services is an option instead of
137 adding a position. Public Services Director DeGardner responded that it's been 25 years
138 since a park maintenance position was added and it's just a matter of needs and more
139 personnel I warranted.
140
141 Councilmember Lyden asked what staff needs on the budget right now. Ms. Lynch said
142 staff is getting information through this process; she asks if staff should produce a budget
143 book that includes the higher tax rate. Are there any assumptions the council would like
144 staff to incorporate (she noted the recreation questions and if the surface water fee should
145 be included even though it's not approved, or the YMCA levy that could be changed).
146
147 Mayor Rafferty said two councilmembers have asked for a scenario that brings the rate
148 down to 40.1% and he asked if a 41.5% scenario would bean acceptable view. Ms.
149 Lynch remarked that with a flat tax rate, all the adjustments requested by staff would
150 basically be gone. Councilmember Lyden asked for a budget that maintains city services
151 but nothing else; Ms. Lynch said the 44.5% is that level.
152
153 Mayor Rafferty noted the storm water utility as a must and also funding the capital
154 program through reserves saving $250,000. The mayor asked for the pros and cons of
155 not purchasing the dump truck. Public Services Director DeGardner noted that the truck
156 proposed to be replaced has been identified by the City mechanic; it's a specialized
157 vehicle and if it goes out of service, there is a real impact. Staff clarified that the mayor is
158 discussing the option of utilizing the $500,000 reserve fund for capital equipment funds
159 and including the dump truck purchase. Staff asked if the dump truck should be included
160 in the next round and the council concurred.
161
162 Administrator Cotton noted that there is no funding included for Blue Heron Days. She
163 recommends that funding be included if the council sees the need for 2022.
164
165 Councilmember Cavegn asked if there is a way to reduce smaller areas, noting recycling
166 costs, by just using less. Public Services Director DeGardner noted that management
167 staff works to reduce costs at all the time and in the normal course of their work and he
168 noted some recent cases.
169
170 Mayor Rafferty noted the Recreation Coordinator position; he suggested that
171 collaboration could be a good approach. Administrator Cotton suggested that if there
172 were staff at a new rec center, there should be opportunity to coordinate recreation
173 staffing with certain event planning functions.
174
175 Staff will take feedback received tonight and update the proposed budget and get that into
176 books.
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178 Mayor Rafferty asked staff to provide additional information on American Rescue
179 funding possibilities.
180
181 2. Set Meeting Date for Next Budget Work Session
182
183 The council scheduled the next discussion for August 91h, following the regular council
184 meeting.
185
186 The meeting was adjourned at 9:30 p.m.
187
188 These minutes were considered, corrected and approved at the regular Council meeting held on
189 August 9, 2021.
190
191 A.
192 1
193
194 Julianne Bartell, City Clerk
195
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