HomeMy WebLinkAbout08-23-2021 Council Special Work Session MinutesCITY COUNCIL SPECIAL WORK SESSION
APPROVED
1 CITY OF LINO LAKES
2 MINUTES
3
4 DATE August 23, 2021
5 TIME STARTED 7*00 p.m.
6 TIME ENDED 8*45 p.m.
7 MEMBERS PRESENT Council Member Stoesz, Lyden,
8 Cavegn and Mayor Rafferty
9 MEMBERS ABSENT Councilmember Ruhland
10 Staff members present: City Administrator Sarah Cotton; Finance Director Hannah
11 Lynch; Community Development Director Michael Grochala; Director of Public Safety
12 John Swenson; Public Services Director Rick DeGardner; City Clerk Julie Bartell
13
14 1. 2022 Draft Budget &Tax Levy —Finance Director Lynch noted the budget
15 memorandum included in the packet and highlights noted therein. The only updates to
16 the preliminary budget book relate to the capture value from tax increment in the county
17 valuation numbers and fiscal disparities; they impact the tax rate slightly. Three memos
18 have been provided in response to discussion at the last budget session. She reviewed the
19 memos:
20 - Computer Replacement Memo — a response from Metro INET explaining that the
21 City's computer replacement plan is within their recommendations. Looking at
22 lease options would fail on City staff to investigate and implement. The memo
23 provides information on services as well. Councilmember Stoesz remarked that
24 leasing is a trend that will probably become more reliable in the future.
25 - Car Wash Detail and Large Fleet Washes Memo — providing more information as
26 requested at last session.
27 - Vehicle #617 Memo - providing more information as requested at last session.
28
29 Mayor Rafferty discussed the option of adding a wash bay at the Public Works facility.
30 Public Services Director DeGardner expanded on the idea, noting that staff tried to look
31 at that as a more permanent option as well as options to outsource washing.
32
33 Councilmember Lyden noted that he likes the idea of in -floor heating. He also wonders
34 what $250,000 gets you in the way of how many vehicles could be stored in a heated
35 space? Director DeGardner remarked that staff really lookedothis from a high level view
36 — how to address concern of vehicle washing — and came up with the estimate for having
37 an in-house washing facility as well as other options.
38
39 Councilmember Cavegn asked how much this would extend the life of vehicles and Mr.
40 DeGardner said significantly, adding that rust is a big problem.
41
42 Mayor Rafferty asked, regarding Vehicle #617, is there a safety issue (doors). Mr.
43 DeGardner pointed out the picture in the budget packet, and added that the vehicle was
44 found without a charge earlier today and that isn't a good condition for public safety
CITY COUNCIL SPECIAL WORK SESSION
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45 vehicles. Mr. DeGardner reviewed what would be covered by the estimate. Director
46 Swenson added that this vehicle is a 2013 model and it is indicative of aged fleet
47 vehicles. He noted the importance of having public safety vehicles that are reliable.
48
49 Councilmember Cavegn noted his opinion regarding the following budget matters:
50 - Aesthetics is not a concern;
51 - Additional training for Fire Department (training is good; is additional needed?)
52 - MNSPECT inspections services (needs refresher); Mr. Grochala said that is
53 contract inspection services for summer;
54 - Woodridge Estate lights — postpone for this year;
55 - Salt spreader — do without this year;
56 - Lois Lane trail — get by without for a year or two;
57 - Hockey rink — delay;
58 - Resurfacing basketball courts — not sure about funding that work;
59 - Flushing (Director Lynch explained that it was within the water fund and it is
60 being taken out anyway).
61
62 Administrator Cotton noted pull back discussed at the last meeting on the trail and hockey
63 rink as well as basketball courts and Birch Park lighting; seems like the council wanted
64 more discussion.
65
66 Councilmember Stoesz asked if there is any improvement possible on contracted street
67 lighting. Director DeGardner said the City is locked in with Xcel and Connexus on those.
68 When Councilmember Stoesz asked about upgrade, Mr. DeGardner explained that
69 upgrades are being accomplished by Xcel/Connexus on their schedule and any
70 acceleration would mean the City would have to fund the work. Councilmember Stoesz
71 asked if there will be any revenue from small cell; Mr. DeGardner indicated that is a few
72 years out. When asked about additional water tower revenue (new tower), Mr.
73 DeGardner indicated that unfortunately there is no expectation.
74
75 Councilmember Lyden said it's hard to go about the budget this way; he would do better
76 with a different perspective. He'd like to start with priorities first; a lens through which
77 the council can look at the community with a mission statement and core values. He
78 suggests they begin with whether or not there will be a tax rate increase and how much;
79 and then have staff bring back options.
80
81 The mayor pointed out that staff has brought forward a budget and the elected officials
82 are responsible for deciding what's funded.
83
84 Mayor Rafferty offered his opinion on the following line items:
85 - Woodbridge lights (no problem delaying);
86 - Lois Lane (agree to delay);
87 - Sunrise Park hockey rink (walked it and doesn't see problems);
88 - Basketball courts (visited and saw variety of decay);
89 - Hockey lights — he likes the ability for users to manage rather than paid staff;
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90 - Duty crew — concern about having a revolving door;
91
92 He asked if the Public Safety Department has come up with the plan for half the units for
93 a duty crew?
94
95 Public Safety Director Swenson concurred that there is turnover risk with park time staff
96 (Fire duty crew) but they are trying to keep costs down. The number of part time staff
97 proposed is based on the research they've done and based on the lowest possible cost.
98 Mayor Rafferty asked if there is a way to be transitional while still meeting the goals;
99 there is something that needs to be accomplished and he's committed to it. Public Safety
100 Director Swenson explained the need in the police division to have resources; the time to
101 respond to low level calls is growing. When the mayor asked about adding fire personnel
102 through police hiring, Director Swenson explained the history of bringing forward the
103 duty crew idea after much work by the department and with the idea that there could be a
104 situation where public safety is under resourced.
105
106 Councilmember Lyden noted that the Public Safety Director is consistently giving the
107 council the information needed to understand how to provide adequate public safety
108 services.
109
110 Councilmember Cavegn asked if the council will decide on a tax rate that is acceptable.
111
112 The mayor remarked that he is not comfortable with the current number.
113
114 Councilmember Lyden said he'd be happy with a flat tax rate but he isn't sure it's
115 realistic; he'd like to see what a flat tax would look like.
116
117 Councilmember Stoesz noted that he's been looking at basically the same budget for all
118 the years he's served on the council. He struggles with what to cut and has great respect
119 for public safety.
120
121 Administrator Cotton remarked that there have been a few cuts noted and she has
122 quantified that to a reduction $106,500 and that would result in a tax rate of 41.966 ($157
123 tax increase to $300,000 home with $96 of that being valuation increase). She added that
124 staff has reviewed how American Rescue Act funds could impact the budget and have not
125 found additional areas (beyond negative impacts of COVID) but some of the surplus
126 funds that will be available in the City budget are probably related to CARES funds.
127
128 The council received an update on the Watermark development and when that tax
129 valuation will be included on the City's tax rolls.
130
131 Mayor Rafferty asked what it would take to get down to last year's rate (40.109) or 41.0.
132 Roughly $350,000 to get to 41.0.
133
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134 Councilmember Cavegn noted that Blue Heron activities and a coordinator to run them
135 are not currently included in the budget and he feels that is needed.
136
137 Mayor Rafferty noted interest in getting the dump truck purchase back into the budget
138 ($250,000). Also getting something going to look at public works facility (planning
139 discussion). Those would be one-time costs so maybe an appropriate use for surplus. Is
140 there a way for staff to come back with cuts that total $350,000?
141
142 The council discussed the rec center and staffing and the possibility of having staff do
143 City work as well. Director DeGardner remarked that it really depends on what duties are
144 assigned for one area and if there is room to expand responsibilities. Administrator
145 Cotton suggested that ultimately the structure of how a facility is operated will determine
146 staffing.
147
148 Councilmember Lyden noted that he likes the idea of asking staff to come back with
149 options to reach a determined rate.
150
151 Director DeGardner noted that it was helpful for him to look at Page 10 and 11 of the
152 budget information — it shows what is added; if you were to delete every single one of
153 those it would equate to savings of just over $267,000.
154
155 Councilmember Lyden noted surplus funds and wonders about how those could best be
156 utilized.
157
158 Mayor Rafferty remarked that in some ways it comes down to personnel and isn't it better
159 to not increase in that area rather than cut; and in the area of upgrading vehicles, he
160 doesn't think there is a taxpayer value there. Councilmember Lyden argued for the value
161 of quality vehicles.
162
163 Councilmember Stoesz asked about the impact of dipping below the reserve policy level.
164 Ms. Cotton explained that the greatest implication would probably be to the bond rating
165 agencies and it would be difficult to make the argument that it's all pandemic related.
166
167 Mayor Rafferty reviewed those things that had been discussed for removal and suggested
168 they could go to surplus (except Woodbridge, Lois Lane, hockey rinks) and he'd like to
169 go back to the Ford Explorer vehicles. He believes that the City should stay away from
170 using one time funds for personnel. He'd like to see what staff can come up with for the
171 rest (to reach a tax rate of 41.0).
172
173 Dorothy Rademacher (audience), Quad Chamber, noted her involvement in the
174 community. She supports public safety and addressing staffing needs in that area. From
175 observing the conversation tonight, she cannot determine if the goal of the council is to
176 hold the tax rate firm, increase it or decrease it. She suggests that the budget should be
177 looked at like a business whereby you must deal with realities. Ms. Rademacher added,
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178 regarding Blue Heron activities, that she is currently looking at the four days of activities
179 to determine what was profitable and paid the expenses.
180
181 The council had provided information on possible budget reductions for staff to work
182 with and identification of some items to be funded by surplus.
183
184 The mayor said he would prefer to remove Alexandra House funding; Councilmembers
185 Cavegn and Lyden disagreed. Councilmember Stoesz said he supports that program but
186 doesn't believe City funding is appropriate.
187
188 Administrator Cotton noted an increase of $71,000 to the Pavement Management Fund
189 and a $30,000 (back to budget level) increase to the Parks and Trails Fund. Mayor
190 Rafferty remarked that he would like to see those line items funded and is comfortable
191 utilizing surplus funds. Councilmember Cavegn noted that he'd prefer to not utilize
192 surplus funds for those expenses because he considers them ongoing.
193
194 Administrator Cotton noted capital expenses and that many cities utilize their surplus
195 dollars to pay for capital expenses because they are near onetime expenses. She asked if
196 the council is comfortable with that concept.
197
198 Mayor Rafferty asked about adding some funding to move forward and get more
199 information on public works facility needs and possible planning. Administrator Cotton
200 noted that a traditional source of funding for that type of look would be the Closed Bond
201 Fund. Director DeGardner remarked that there has been a lot of time and money spent on
202 options and concepts and the next step would be looking at financing that would be
203 available. As far as the concepts that have been presented, Mr. DeGardner added that
204 things have changed that would impact planning. Considering that as part of a full view
205 of future needs will be a future work session discussion.
206
207 2. Set Meeting Date for Next Budget Work Session
KIM
209 Mayor Rafferty suggested that the next regular work session (September 7) would work
210 for the next budget discussion.
211
212 The meeting was adjourned at 8:45 p.m.
213
214 These minutes were considered, corrected and approved at the regular Council meeting held on
215 September 13, 2021.
216
217
218 f 219
220 �7ulia e Bartell, City Clerk RA Rafferty, Mayor
221
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