HomeMy WebLinkAbout07-27-2020 Council Work Session Minutes 2 CITY COUNCIL WORK SESSION
1 CITY OF LINO LAKES
2 MINUTES
3
4 DATE : July 27,2020
5 MEMBERS PRESENT : Council Member Stoesz,Lyden, Ruhland,
6 Cavegn and Mayor Rafferty
7 MEMBERS ABSENT : None
8 Staff members present: City Administrator Sarah Cotton; Community Development
9 Director Michael Grochala; Director of Public Safety John Swenson; City Planner Katie
10 Larsen. and City Clerk Julie Bartell
11 1. Coronavirus Relief Funds—Administrator Cotton reviewed her written report
12 pointing out that the City will be receiving Coronavirus Relief Funds in the approximate
13 amount of$1.6 million. She explained how funds can be utilized,the deadline for
14 utilizing funds and staff s proposals for fund use to date and looking ahead.
15
16 Councilmember Lyden asked if work needed in the police shower area and a
17 communication position are something that could be funded. Ms. Cotton explained that
18 the proposed budget was not put together to include consideration of these relief funds
19 and that there could be areas such as the police locker room where funds could be
20 utilized, however, it's important to realize that the November deadline means the City
21 would have to act fast on any project.
22
23 Administrator Cotton noted payroll expenses and plans to present certain salary expenses
24 that are tied to addressing the COVID situation.
25
26 Councilmember Lyden asked, what has been seen as the most creative use of these funds
27 by another city. Ms. Cotton said much of what she sees are building (capital) costs but
28 there is much discussion about the payroll type costs especially since that is the biggest
29 element of a city budget.
30
31 Public Services Director DeGardner reviewed the basics of the building projects
32 proposed:
33 - Install air filtration systems at civic complex, both fire stations and public works
34 building;
35 - 14VAC System Cleaning (police department, day care area and city hall);
36 - Workplace Improvements (service windows, pass through at PD, etc);
37 - Computer changes (desktop to laptop conversions and iPads for Public Works);
38 - Thermo Scan equipment;
39 - Senior Center Renovations (including to serve Public Works employees);
40 - Public Facility entrance and bathroom improvements;
41 - Sidewalk addition at Fire Station No. 1.
42
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CITY COUNCIL WORK SESSION
43 Mr. DeGardner will check on the suggestion to look at cabin filters for City vehicles.
44
45 Councilmember Stoesz suggested adding sound and a monitor outside the council
46 chambers.
47
48 Councilmember Lyden remarked that the $1.6 million to the City is a unique situation and
49 he supports fully utilizing it. Staff should make it work. Public Safety Director
50 Swenson noted that the expenditure of funds must meet guidelines or there could be an
51 audit and request for return of funds. Mayor Rafferty said he is proud of staff for
52 bringing forward everything they can in the way of eligible projects and that is the
53 expectation.
54
55 The council and staff discussed moving forward. Administrator Cotton noted that the
56 planning/architecture type costs that can precede an eligible project are grant-eligible
57 even if the project doesn't go forward.
58
59 Community Development Director Grochala said the City can use the funds to provide
60 grant assistance to small businesses. Anoka County is establishing a program and the
61 City can have its own program and the county guidelines could be mirrored. Director
62 Grochala explained that many of the businesses in Lino Lakes would meet the under fifty
63 employee threshold. The City would hold some responsibility if the funds weren't used
64 within requirements. Administrator Cotton remarked, and Director Grochala concurred,
65 that there is some concern that the City would have to provide administration and that
66 would have to be hired outside current staff. Other considerations: perception by
67 businesses that the City is choosing not to offer a program; County grants are not
68 available to businesses who can get grants from their city. Councilmember Lyden noted
69 that the school district may be a good target for the funds since they will already be
70 administering other like funds. Councilmember Stoesz suggested making eligibility
71 contingent upon a business having had to actually close their doors. Administrator
72 Cotton explained that the funds would have to be used for actual expenditures. Mayor
73 Rafferty noted that he wants to see the City make the best use of funds available and
74 wonders how this program would fit in.
75
76 Councilmember Ruhland asked Director DeGardner if he has cost estimates for the
77 projects he's presented. Mr. DeGardner said he has some and is working daily on getting
78 others. The council asked staff about how accurate they can be at this point about how
79 the funds can be used and to what extent. Ms. Cotton noted that staff is gaining as much
80 information as possible on appropriate use; much use will be tied to public safety because
81 that has been an area greatly impacted by the pandemic;the goal is to follow guidance on
82 fund use as assertively as possible. Since an audit on the use of funds will be required,
83 Councilmember Stoesz asked how much that audit is expected to cost.
84 Ms. Cotton noted that the City's annual internal audit costs in the area of$35,000 but she
85 wouldn't expect it to be that much and she anticipates the audit cost would be an eligible
86 expense.
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88 Mayor Rafferty asked if the broken electronic sign in front of the civic complex could be
89 fixed because it's delivering a message that could be linked to the pandemic. He also
90 supports audio/video in the hallway outside the council chambers as a project that is
91 needed due to space limitations inside the council chambers.
92
93 Administrator Cotton asked the council to review those projects being suggested and let
94 staff know if they have concerns. The council indicated approval to move forward and
95 Ms. Cotton suggested that the council will eventually have a resolution that encompasses
96 the City's program. In the meantime,the council will begin seeing individual project
97 actions coming forward.
98 2. 2021 Draft Budget& Tax Levy—Administrator Cotton reviewed budget
99 information before the council. Staff will give a presentation and plan to provide
100 additional updates in the future. Ms. Cotton's presentation included information on:
101 - The council must adoption a preliminary tax levy by September 28t' (a
102 maximum); the final budget is normally adopted at the first meeting in December;
103 - Draft budget and levy amount noted, representing a 9% increase from 2020;
104 - Budget does include assumptions (COLA increase, health care cost increase, life
105 and disability, work comp);
106 - Summary of what is the base budget reviewed; Costs in addition to the base are
107 added and that becomes the proposed 2021 budget;
108 - A gap analysis is included that provides a year over year change view; one time
109 revenue utilized in the 2020 budget are a driver in the gap;
110 - Market value information noted; Anoka County isn't providing data well at this
111 point due to a technology upgrade; a five percent assumption is included
112 representing just over$500,000 in additional tax revenue; tax payments are
113 strong for 2020 but there are unknowns for 2021 collections; Councilmember
114 Ruhland noted concern about commercial tax collections based on the impact of
115 COVID;
116
117 Councilmember Lyden asked about use of reserves in 2021. Ms. Cotton noted that the
118 reserves were one-time revenue and it would be difficult to move to reserves again. Ms.
119 Cotton noted funds committed but not used in a previous year to a City recreation
120 complex ($375,000) and a veterans' war memorial ($50,000); those funds could be
121 directed to another use. Public Services Director DeGardner recommended that the
122 $375,000 be transferred to the Parks and Trails funds for use over the next three years.
123
124 - Debt levy review, noting that Street Reconstruction Program projects will be
125 coming forward on a planned basis;
126
127 Councilmember Stoesz asked, would it be appropriate under an emergency situation to
128 utilize fund reserves below the fifty percent threshold? Ms. Cotton explained that such a
129 use would need to be a recognized emergency and a plan should accompany on how
130 funds will be restored. Staff also explained that the use of reserves has been scrutinized
131 by the rating agencies so it's recommended that the structure of actual revenues balanced
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132 to expenditures be the City's budget practice even if yearly phasing is necessary to get
133 there.
134
135 Councilmember Lyden noted that the figures presented are not popular. His goal is to
136 maintain the tax rate (39.87); he doesn't want to go line by line in the budget but would
137 prefer to let the management team make recommendations on how to reach that goal.
138 Mayor Rafferty remarked that it's important to him that the council fully understands
139 what's included in the budget.
140
141 Ms. Cotton reviewed additional elements of the budget:
142 - Revenue estimates;
143 - Personnel—some new requests included which staff spoke to:
144
145 Public Safety Director Swenson explained that the department and council have discussed
146 how to reach full authorized staffing which is 27 sworn(same going back to 2010). The
147 staffing level impact public safety response. The department is asking for two additional
148 officers to increase staffing, particularly during daytime hours. They are also requesting
149 an investigative position to free up sworn staff time. Councilmember Cavegn asked if
150 there is data indicated the increase in calls since 2010; Director Swenson noted a steady
151 increase looking back at dispatch reports he sees an increase from 2010 to 2019 is about
152 2,791 calls for service.
153
154 Public Services Director DeGardner reviewed his personnel requests. A street
155 maintenance position is requested as there has been no increase in that area since 2006
156 with the major impact he sees upon snowplowing services. There is also a request for an
157 additional truck to assist with plowing. The next position requested is a part time
158 position(.06 FTE)that focuses on special events and programming. Additionally the
159 budget includes a utility position funded by the water and sewer fund based on more
160 workload in this area; he reminded the council of larger utility projects coming along.
161
162 Mayor Rafferty noted requests for new positions. He is aware there are needs but being
163 in the middle of COVID, it's hard to understand what the future holds; he prefers to move
164 forward conservatively with this year's budget.
165
166 Councilmember Lyden said he's looking for creative answers. Perhaps some duties
167 could be combined for a new position.
168
169 Councilmember Cavegn said he understands the needs and he sees the budget can't
170 absorb additional costs so he'd like to hear more about creativity perhaps with how
171 positions are funded.
172
173 Administrator Cotton remarked that one idea that's been discussed in the past is a storm
174 water utility;that could be a revenue source. Also franchise and street lighting fees are a
175 possibility which utilizes fees rather than taxation for related costs. Councilmember
176 Cavegn asked what a utility fee would cost and Mr. Grochala estimated around$20-25 in
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177 2010. Ms. Cotton spoke to her experience in implementing a storm water utility in
178 another city and the need to provide education to the public on the fee. Staff will look at
179 those funding opportunities.
180
181 The mayor remarked that he likes the creative budgeting discussion but he also sees the
182 need for getting down to reducing the budget gap.
183
184 The council discussed the street rehabilitation budget and the mayor requested a five
185 percent increase; the council concurred.
186
187 Administrator Cotton moved to review of the Capital budget and capital equipment
188 replacement. Some of the capital equipment replacement is related to sales of
189 equipment,personnel levels, etc. And because of how equipment is purchased, there
190 would not be an impact in this budget for something that is removed.
191
192 Councilmember Stoesz remarked that the government isn't good at seeing outcome based
193 work. Is it possible to convert the FTE scenario to outcome based so as to present what a
194 new position would actually achieve? That better represents new workforce ideas.
195
196 Councilmember Ruhland asked about the impact of scheduling if a police officer position
197 were added. Director Swenson explained the shifts and how they schedule to meet
198 heaviest needs. When the mayor remarked that levels of vacation correlate with more
199 longevity and that impacts staffing,the City Administrator clarified that is a recognized
200 part of budgeting and scheduling.
201
202 Councilmember Lyden asked if the City could get more police officers if police cars are
203 kept longer including through proper maintenance. Director Swenson noted that the
204 City's patrol vehicles are not utilized in the same manner as other vehicles and therefore
205 there are safety concerns; he noted that a presentation on the purchase of vehicles will be
206 forthcoming.
207
208 Administrator Cotton remarked that the council has identified some items through this
209 discussion but she'd like for staff to have some high level guidance regarding areas such
210 as recreation.
211
212 Council discussion continued. Items noted:
213 - How to reach the desired tax rate (38); Staff advised that would mean a reduction
214 in the level of service,probably personnel related; Ms. Cotton added that to get to
215 the 39.75 the previous year there was a use of one time surplus funds and that left
216 the City with a gap this year; Ms. Cotton advised that the council should first
217 look at the level of service needed and that is the basis for the budget;
218 - Councilmember Cavegn suggested that there is $425,000 essentially available and
219 if there could be a place where that amount covers new requests,that would be a
220 win; the mayor spoke against that concept and expressed the desire to bring the
221 levy down without touching those funds;
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222 - Councilmember Cavegn suggested that things can be funded long term with the
223 fees that are being discussed;
224 - The mayor expressed a desire that staff"sharpen their pencils"in both revenues
225 and expenditures; Administrator Cotton said staff, with council direction, could
226 bring information back on such things as revenues/fees however that could take
227 some time;
228 - The council discussed a storm water utility; Administrator Cotton reviewed the
229 costs currently included in the budget related to storm water maintenance; there
230 was discussion about the possibility of a water treatment facility and how that
231 would fit in;
232 - Councilmember Stoesz noted payments (debt service) for the YMCA facility; he
233 wonders if the City could get a break on those payments since the facility isn't
234 open; Staff indicated that discussion is underway with the City's bond counsel on
235 the matter of that facility;
236
237 Administrator Cotton continued by finalizing staff s presentation, noting the water and
238 sewer operating budgets. Public Services Director DeGardner noted the reduction in
239 metro sewer charges. Ms. Cotton noted other items for discussion included in the budget
240 paperwork. The use of Corona Virus Relief funds will be evaluated for use as possible.
241 Ms. Cotton continued the review by noting the fund that was set up in 2018 to cover costs
242 of updating parks and trails infrastructure; continued funding would impact the budget.
243 Finally technology expenses throughout the budget are identified to the extent possible.
244
245 The council discussed the budget gap and the tax rate goal.
246
247 Staff will identify some reductions and also plan to provide information on the impact to
248 services with a static tax rate. Administrator Cotton noted that it would be helpful for
249 staff to understand the council's wishes regarding recreation programming. The council
250 determined that the funds should be left in the budget pending more information on what
251 lies ahead.
252
253 Public Services Director DeGardner suggested that the $375,000 earmarked by an earlier
254 council for improvements at the community center land should be allocated for other
255 parks and trails projects. Mayor Rafferty expressed support for park improvement
256 funding.
257 3. Set Meeting Date for Next Budget Work Session
258
259 The council will attempt to meet next on the budget on August 191h
260 4. Adjourn
261 The meeting was adjourned.
262
263
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264
265
266
267 Julianne Bartell, City Clerk Rob Rafferty, Mayor
268
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