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HomeMy WebLinkAbout09/20/1979 Council MinutesSeptemner 24, 1979 contact the State Building Code department for. information. Mr. Schneider moved to approve requisitions #925 through and including #927. Seconded by Mr. McLean. Motion declared passed. Mr. McLean moved to approve checks #9996 through and including #10014. Seconded by Mr. Kulaszewicz. Motion declared passed. Mr. McLean moved to adjourn at 11:45 P.M. Seconded by Mr. Kulaszewicz. Aye. These minutes were considered and approved at the regular Council meeting held on October 9, 1979. 19 Edna L. Sarner, Clerk- Treasurer September 20, 1979 Mayor Karth called the budget meeting to order at 8:05 P.M., September 20, 1979. Members present; Robert Schneider, John McLean. and Richard Kulaszewicz. Members absent; Richar Zelinka. Also present were Marilyn Anderson, Don Volk and Ron Jaworski. Mr. Schneider reviewed the budget worksheets to date; with last year's levy of 16.89 mils, the expenses were in excess of the income. The expenses would have to come down, or the levy increased. One possibility could be to get a certificate of indebtedness, for example, a $100,000 certificate to cover capital improvements. Items on the budget work- sheets were gone through and discussed as to what could be dropped. Compared to last weeks figures, the Mayor and Council were at $95,250, down from $99,329. The receptionist was dropped, and $2,000 added to the Administrator's salary. The main increase compared to last year was the Administrator's alary, at $26.000. The $4,000 miscellaneous was also a factor, and Marily Anderson indicated it was high this year because of spring cleanup had been included in that. Also, $3,500 was under miscellaneous for a new copy machine. The present one would be three years old in December, and if maintained property should be good for another year. It was felt this could be dropped from the budget. Eight percent on salaries was figured as a standard; the Personnel Commission had not done anything further on this as yet. Mr. McLean asked if the 7% guideline applied to the City' Mr. Locher had indicated it did not. Mayor Karth converted the wate increase from a percentage to dollars and cents; this amounted to a $1,032 increase. Marily Anderson indicated she had used 8% of the budgeted figure for last year, not the projected figure. The Building Department was up from the earlier figure; a desk, three chairs and a typewriter were included, as well as a partition and divider. The need for a typewriter had come about at Mr. Myjre's request for a typewriter for his office. Mr. McLean felt that the police clerk should handle all the paperwork, and that time should not be taken off patrol for this. Mr. Myhre said that this was one of the reasons for the request for the computer. Mr. McLean suggested the $900 for the typewriter be September 20, 1979 cut down to $200/300 for a used on. This item was dropped to $600, Mr. Schneider asked of Don Volk and Mr. Myhre had come up with alternative plans; Mr. Myhre had understood that the new items were to be dropped. The additional patrolman. CSO and the computer had been eliminated from the Police busget. Mr. Myhre indicated there had also been an error of $7,000 in the figures last time, showing a 44% increase, which actually should have been 34 This was figured to be 11% over hudget and 15% over projected; the salaries were about a 20% increase, but this was tied into the Union contract. Mayor Karth asked if the projected figures were stable enough to be used; Mr. Schneider felt they should be, and Marilyn Anderson indicated that if there were a lot of over- time, they wouldn't be. Mr. Myhre indicated the overtime would drop. Capital outlay was $8,250, with $8,000 for a vehicle and the reaminder for a calculator. The Fire Department figure had not changed since the last estimate, which was about a 6% increase over the 1979 prijected figure. The figure used had been received in the mail, but Marilyn Anderson indicated she understood Centerville was going to revise that estimate upwards. Mr. McLean felt 10% should be added. The figure for the plumbing inspector had been dropped from $9,000 to $5,000. Under Roads Department, the increases for personnel had been taken out. Don Volk reviewed the figures, with some revisions. He felt the $6.500 for street rental could be cut by $1,500 down to $5,000. Je was anti- cipating a 30% increase in oil prices next year, which was also reflect ed in contracted services. Materials and repairs could be cut $5,000 down to $25,000, which would mean no improvements. Mr. McLean felt this should not be done, and Mr. Kulaszewicz felt it would be deviating from the five year projection. In answer to Mr. McLean's question on shop parts, Don Volk explained that the biggest expense there was sweeper parts, at about $2,000. In reference to the truck, Don felt if a new one was purchased, the life span would be about 10 years; there was also a truck that would be 10 years old next year, and another pur- chase would probably have to be made in 1982. Mr. McLean felt taht the City should not tie itself up in a C.I. program for 5 years, as this was too long a period of time, and Mayor Karth suggested looking at 3 year instead. Mr. McLean felt the road program would keep rising, and also that the City was not looking at enough in mileage. Mr. Schneider noted that the icome figures included $43,000 from revenue sharing and $146,500 from State Aid, so that this was being used as part of the operating fund, and not as something extra. Marilyn asked if Federal Revenue Sahring Funds could legally be used as operating funds; Mr. Schneider indicated it would, but Mr. McLean felt it was a bad habit to get into. Mayor Karth noted that if the census showed 5,000 in 1980, it still wouldn't be received intil 1981. D on Volk said the truck itself itself would run $55,000, whicj dropped the capital improvements figure from $63,000 to $58,000. In summary, the amount cut had been $7,000, and with the copy machine cut as well, $10,500. Mayor Karth noted that the City lost about a mil and a half on the new assessed value on the homestead credit this year. The rate was 34' on the dollar, which for a $50,000 home would be $1.50. The interest rates on the certificate of indebtness was dis- cussed; Don Volk thought it was a 7% maximum, and Marilyn understood it was to be 8 %, although there were no firm figures on this. 1 September 20, 1979 21 Mr. Schneider indicated that if the City maintained the same mil rate as last year, 16.89, the present budget left $143,000 in additional expenses. The possibilities of using the C.I. route for capital outlay were figured several times; the $58,000 (roads) plus $8,000 (police) gave a total of $66,000, with interest, $74,000. This was divided by three for a three -year plan, which left $24,700+ to be paid per year; this would mean a net savings of $50,000 to be subtracted from the total of $143,000 additional expenses, leaving $90,000 in additional expenses. The 16.89 mil rate levy was $249,691, and with the additional $90,000 this became $339,691, which divided by 14,784 yeilded a new mil rate of 22.97. Considering the $10,000 cut from the budget, the figure would be $80,000, or a new mil rate of 22. - -. The C.I. would be a special assessment, not part of the mil rate. Mr. Schneider noted the C.I. would only defer expenses. The budget for the Parks Department was discussed, and Marilyn gave the itemized expenses, with Don Volk explaining.some of the equipment. Mayor Karth raised the question of whether the Park Board was allowed 10% for development, which would be $6,000 out of $60,000, however, Mr. McLean noted the 10% figure was just for maintenance, and the remainder for development and acquisition. Marilyn Anderson indicated that half the Park funds were in C.D.'s at 7A%, and rest in savings at 5 %. Mr. McLean felt this should be reinvested, and Marily noted that this could only be done with the Council's instructions. Mayor Karth felt that the $8,200 figure could be cut down to $5,500 and the other items could be picked up out of reserve funds or dedicated funds. If this was handled properly, it would be offset by interest and maintenance costs. Marilyn felt the interest would run about $4,000. Marily reviewed the items under contracted services, and Mr. McLean suggested that the Comprehensive Plan should be the major planning function for the City this year, and the detailed planning should be deferred. However, it was noted that the Council had requested the detailed planning. Parks was cut to approximately 22,000, another $1,000 was cuty from the $4,500 figure and $7,700 out of capital outlay. Mr. Schneider noted that last year ther had been an additional income of $14,000. Marilyn indicated that this was a $5,000 increase in licenses and permits, and nearly $8,000 as reimbursement from Metro Council. She also noted that Metro Council had been going to purchase the lift station and pumps at Country Lakes, now, however, she understood they would pay 50% of the operating costs, although this was unofficial as yet. Don Volk indicated the was a 50% splitting of costs, up to $4,000 a uear' of wpi;d rim $6,600 to operate it next; year, so the Metrol split would be. about $3,300. Mayor Karth reviewed the background on the lift station, and the fact that Metro disclaimed any need to won it becasue it wasn't part of the interceptor. The MSB figure was the payment to have the sewage treated at Pig's Eye; Marilyn indicated the City was Iwo last year, and that had been expected for this year. The sewer fees from homeowners were included in income, and offset this amount. Mayor Karth indicated the City was collecting $8,000 in fees, but just that, so the contingency fund for repairs was being eliminated, and suggested increasing the sewer charges. Marilyn said that the only fee that hadn't been increased was the minimum payment for water; also, she felt the City should seriously consider looking at the platting and rezoning fees. She also indicated the City would not be receiving anything more on the Comprehensive Plan. Me. Schneider asked whether the $8,000 for MSB was sufficient since there would be double the number of homes on the syste. Marilyn said that the fees stayed the same, but felt another $2,000 could be added to the figure. Mr. Schneider had put in $3,000 for interest. 22 September 20, 1979 Mr. McLean felt that instead of $25,000 for inspectors, this should be more in the $20,000 range; he understood the City of White Bear paid their full -time inspector, the man who was substantially in charge, $18,000 a year. Marilyn indicated she had put $20,000 in for the in- spector, but Mr. McLean had referred to the combined total for the building inspector, $20,000, and the plumbing inspector, $5,000; he felt this should amount to $20,000 combined. Marilyn said that there was nothing the in the Metro publications for under $20,000. Mr. McLean asked about the SAC charge, and Marilyn explained that the City only processed this, and it did not appear in the budget at a11. Marilyn explained that she had been conservative on the city services, andticipating less building and income from permits, and suggested perhaps abother $5,000 could be added. Mr. Schneider noted that the budget was now down to $34,000 in additional expenses, which was a mil rate of 19.2, as compared to 16.89 last year. Marilyn added that one of the City vehicles, the office car, would be sold next year; Mr. Schneider suggested $200 on the car and $300 on the trailer. In summary, he indicated the budget stood at'19 mils, using the C.I. route for 74,000. This would need to be finalized, and all the figures checked to make sure they were right. He suggested one more meeting before the first Council meeting in October, which would be October 9, at which time the budget would need to be finalized, as it had to be filed October 10. This meeting was set for October 2, at 8pm. Marilyn was asked to work on the budget September 25, 1979. Mr. Schneider brought up three items for discussion in reference to the City Administrator; the employment contract, moving expenses, and in- surance. The City would be looking at a 3 -5 year employment contract, which was nromal due to concern over Council turnover. The Adminstrato could still be dismissed with due casue. A probationary period was discussed, and whether this could be written into the contract, and Mr. Schneider felt there would have to be a clear definition of probationary The move would run about $1,000 to $1,500. Mr. Schneider asked if there was a definate no to any of these considerations, and whether he could be authorized to go ahead. He felt there would have to be some negotiation on the contract. He will indicate he ahs discussed this with the Council and there does not seem to be a problem. Mr. Kulaszewicz moved to adjourn at 9:30 P.M. Mr. McLean seconded the motion. All were in favor. Motion declared passed. These minutes were considered and approved at the regular scheduled Council meeting held on October 22, 1979. Edna L. Sarner, Clerk - Treas.