HomeMy WebLinkAbout07-14-2014 Council Budget Workshop MinutesCOUNCIL MINUTES July 14, 2014
APPROVED
1 CITY OF LINO LAKES
2 MINUTES
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4 DATE : July 14, 2014
5 TIME STARTED : 5:35 p.m.
6 TIME ENDED : 9:15 p.m. (recessed)
7 MEMBERS PRESENT : Council Member Stoesz, Kusterman, Rafferty,
8 Roeser, and Mayor Reinert
9 MEMBERS ABSENT : None
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11 Staff members present: City Administrator Jeff Karlson; Community Development Director Michael
12 Grochala; Chief of Police John Swenson; Public Services Director Rick DeGardner; Finance Officer
13 Al Rolek; and City Clerk Julie Bartell
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15 1. 2015 Budget — Finance Officer Rolek gave an overview of the draft 2015 budget brought
16 forward by staff. He reviewed the amounts included in the budget, the impacts on the budget, the
17 status of construction and development activities and projected revenues. He reviewed the
18 preliminary tax levy, noting that property values have. He explained the elements of the proposed
19 operating levy increase. He noted that the State Legislature does not have a levy limit in place. The
20 staff report included a gap analysis that was reviewed. He noted that health insurance rates (for
21 employees) are not yet known so twenty percent was used for review purposes. The amount the city
22 pays to the Public Employees Retirement Association (PERA) has increased. Revenue changes were
23 reviewed including losing the use of reserve and forfeiture funds. The budget does include some
24 one-time start-up costs for the fire department that are not eligible for bonding. He reviewed the
25 new budget requests.
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27 Mayor Reinert remarked that the council will do the drill down that they always do. This city has
28 seen value increases before and it isn't appropriate to have the budget creep up to meet the increase.
29 He sees that the increases in the budget represent both one time increases and long term personnel
30 costs.
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32 Council Member Roeser asked how rent from the newly rented ECFE wing in the city complex is
33 represented in the budget. Finance Officer Rolek explained that it has been understood that those
34 funds would be dedicated to maintaining the complex. Council Member Roeser said he has concern
35 about capital items (such as a fire truck) showing up in one year. Mr. Rolek said that only start up
36 costs are indicated in 2015; items that can be capitalized are spread over time.
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38 The council discussed the Assistant City Administrator position. There were questions to
39 Administrator Karlson about the proposed salary. Council Member Kusterman noted that the number
40 of applications the city has seen in recent hiring efforts indicates that there may be a lot of interested
41 people out there and the possibility of a lower salary.
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43 The council discussed use of police forfeiture funds. Chief Swenson explained that federal rules
44 dictate use of that money to fund a police position for one year only. That choice was made for 2014.
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COUNCIL MINUTES July 14, 2014
APPROVED
46 The council discussed how the Drug Task Force works. One Lino Lakes police officer is dedicated to
47 the group. Chief Swenson reviewed the amount of forfeiture funds received in the past few years and
48 what that money has been used for (equipment, special programs, etc.).
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50 The meeting was recessed at 6:30 p.m. to allow the council to attend the regular council meeting.
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52 The meeting was reconvened at 8:00 p.m. All council members were present.
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54 The council discussed elements that would increase the city's budget. Council Member Stoesz asked
55 about the proposal to continue the temporary scanner position; for how long? Administrator Karlson
56 replied that he anticipates that function will be needed through 2015.
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58 Council Member Rafferty noted the personnel requests and remarked that the council just discussed
59 filling a highly skilled position of Mechanic but sees that the Assistant City Administrator position
60 would have a much higher salary.
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62 Council Member Kusterman said he'd like to be able to look ahead to 2016; does it look better? The
63 mayor remarked that the council has used a 5 year plan in the past but that process became very
64 became very difficult when the economy was bad.
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66 Council Member Kustenuian noted that there will be bonds sold for the new fire department and he'd
67 like more infoimation on that debt service.
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69 The council discussed ways to level out city costs — fmance improvements, amortizing debt over a
70 period of time. It was noted that there will be savings in that the city will no longer have to make a
71 contribution to the Centennial Fire District.
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73 After some discussion, Mr. Karlson indicated that he would take the request for a pay equity study off
74 the table and work with some previously suggested adjustments.
75
76 There was discussion about recreation services, the rec center land, the Legacy land, dog licensing,
77 the ACE program and prosecution fees.
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79 Administrator Karlson noted that staff is bringing forward what they feel needs council consideration.
80 The mayor responded that he understands the value of the discussion at all stages and expects a good
81 process that comes to a good conclusion.
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83
84 adjourned at 9:15 p.m.
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88c -R-A-12,_
89 3u1 . e Bartell, City Cl r rk Jeff R: n , Mayor
The next budget discussion is planned for the regular August work session.
These minutes were considered and approved at the
The meeting was
ng, July 28, 2014.
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