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HomeMy WebLinkAbout09/02/1986 Council Minutes1 BUDGET MEETING September 2, 1986 The budget meeting was called to order at 6:30 P.M. by Mayor Benson. Members present: Marier, Bohjanen, Reinert. Members absent: Bisel. City';Accountant, Joe Huss; Administrator, Randy Schumacher and Clerk - Treasurer Marilyn Anderson were also present. Mr. Schumacher explained Mr. Huss was resigning very soon and he wanted to present preliminary budget figures to the Council. Written material had been presented to the Council. Mr. Schumacher explained that every month in 1986 has been good in that General Fund operated with a positive cash flow and is expected to continue to do so for th entire year. The only departments experiencing over runs are Public Works due to spring flooding and Consultants due to the Com- prehensive Plan update. Comparative - Budget Receipts - Levy 1986, $835,500; 1987 projected to be $915,000 (no mill rate increase). The increase in total re- ceipts from 1986 to 1987.is expected to be $68,132. There will be no Federal Revenue Sharing in 1987. Mr. Schumacher explained the figures and calculations on page two of the handout regarding how the estimated mill rate was established. Major Expenditures Issues - Mr. Schumacher outlined the material and uncontrollable increases in the 1987 budget: 1) 12% insurance; 2) special studies; 3) union contracts and salary adjustments; 4) in- crease in street lighting; 5) replacement of copy machine. Additional issues; payments on firehall, addition to firehall, acquiring land adjacent to firehall, proposed Fire District increase in budget, increase in police department staff and vehicles, increase in Public Works overlay and seal coat programs, increase in Consultants bud- get due to water management study, Civil Defense siren program and new Public Works building. There was a question regarding the Fire Department budget. Mr. Sch- umacher explained that the budget is not finalized and there will be further discussion on this budget. Mayor Benson noted that this de- partment is proposing adding ten new firefighters and creating new paid positions. Policy Issues: Police Department requesting one additional officer and two new vehicles. Public Works - $40,000 increase in overlay program and $10,000 increase in seal coat program. Consultants - Rice Creek Watershed District 901 Surface Water Plan. The plan will allow this City to adopt its own watershed plan and plug it in to the 901 plan. There were comments regarding the function of RCWD. Civil Defense Siren Plan - Mr. Tesch is working with several siren companies to develop a plan for this City to implement on a phase basis. Public Works Building - Mr. Schumacher has information regarding what this would cost the City and informat- Budget Meeing September 2, 1986 Page -2- ion regarding acquisition of the firehall and its improvements. The Council will have to deal with the need and method of payment. The total cost is approximately $750,000. If this is to become reality there will be a 3 mill increase to obtain approximately $90,000 a year. He gave the Council a fact sheet re- garding the lease purchase program. The major feature of the program is that the financing of the firehall and public works building would not have to be put to a referendum. Mr. Reinert asked about leasing vehicles for City use. Mr. Schumacher explained this is not readily available in Minnesota, leasing occurs mostly on the west coast. Mr. Reinert asked what criteria is used for adding police officers to a department, it seems the department is really growing, what is the plan? Mr. Schumacher said the direction of the department is a policy issue that is decided by the Council. Chief Campbell is requesting additional personal based on the Task Force study pre- pared about a year ago, the population and the number of incidents. Mr. Marier asked that all the areas addressed tonight be expanded on including the reasons for the request for the Council to study. He asked that any increase or change be explained. Mr. Schumacher explained that the reason he was presenting the policy issue items tonight is that none fo them can be implemented without an increase in mill rate. Mayor Benson suggested maybe the Council should look at a.mill rate they want to establish for 1987 and then have the staff bring back priorities from each department with the manner in which these items can be funded over.a period of time. Mr. Reinert said he was not in favor of a mill rate increase. Mr. Bohjanen agreed but felt a public works building was a real need. Mr. Marier said he felt the Council could do the things they want to do without a mill rate increase. Mr. Schumacher said the public works building and the firehall acquisition should be addressed out side of the General Fund unless the Council goes back into the oper- ating budgets and reduces some services such as seal coating. Mr. Marier moved to adjourn at 7:31 P.M. Mr. Bohjanen seconded the motion. Aye. MARI Y G. ANDERSON, CITY CLERK BEN AMIN G. BENSON, MAYOR 1 1