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HomeMy WebLinkAbout12/20/1989 Council MinutesCOUNCIL BUDGET WORK SESSION DECEMBER 20, 1989 A Council budget work session was called to order by acting Mayor Reinert at 4:10 P.M. Council Members present: Bisel, Bohjanen and Neal. Council Members absent: none. Mayor Benson arrived about 4:20 P.M. City Accountant, Paula Romocky; Public Works Director, Don Volk; Chief of Police, Dean Campbell; Administrator, Randy Schumacher and Clerk - Treasurer Marilyn Anderson were also present. Acting Mayor Reinert showed Mr. Schumacher a copy of the budget hearing publication in the Minneapolis Star and a copy of the Preliminary 1990 Budget printed in the Quad Press. He noted that there were two different totals for the 1990 Budget and felt this was confusing. Mr. Schumacher explained that the 1990 Budget publication in the Minneapolis Star was required because of the truth and taxation laws. This publication listed all levies including special levies for the capital outlay items in the Certificate of Indebtedness. The Charter requires that the General Fund Budget be published and this does not include the capital outlay expenses in the Certificate of Indebtedness. There was discussion on this matter and Mr. Schumacher was asked if the Charter requirements should be brought into line with the state truth and taxation requirements. Mr. Schumacher felt this would not be a good idea since state requirements seem to change with each legislative session. 1989 BUDGET ADJUSTMENT Ms. Romocky presented an outline of the proposed amendments to the 1989 Budget. These amendments would not increase or decrease the total figures, only re- arrange line item totals. Mr. Schumacher explained each item and noted that a resolution will be presented to the Council on December 26, 1989 to finalized the 1989 Budget. 1990 BUDGET Mr. Schumacher explained that although there were more receipts than planned in 1989 there will probably be no additional monies to be added to the General Fund Surplus since there have been a number of expenditures that were not anticipated. He said the Council should not plan to fund any 1990 expenditures with anticipated surpluses. Snow Removal — There will be no surplus in snow removal even though this snow season has produced little snow. There has been additional sanding due to the very small amounts of snow. The state and the county both try to maintain a bare pavement and therefore use a much larger portion of salt /sand than it is used by this City. EXPENDITURES Acting Mayor Reinert said he wanted all questions and PAGE 1 1 1 1 1 1 1 COUNCIL BUDGET WORK SESSION DECEMBER 20, 1989 concerns on the 1990 Budget sorted out this evening so that when the 1990 Budget Hearing is continued on December 26, 1989 the 1990 Budget will be nearly set. Mr. Schumacher highlighted the proposed changes for each department within the 1990 Budget: Mayor and Council Elections and Voters Registrations Administration Assessor $3,200.00 increase in Council salaries which were approved by ordinance in 1988. There will be a primary and general election in 1990. An amount of $2,500 will be added to the amount previously set aside for the purchase of optical scan voting equipment. There is a slight reduction in salaries since the salary of some personnel will be re- allocated to other departments. A staff car is included in the capital outlay. There was discussion regarding leasing a car and this has been checked by Mr. Volk. There was discussion regarding a demo car and what size car to purchase. Also there was discussion regarding what model of car to purchase. Mr. Reinert recommended that this matter be concluded as soon as possible. Acting Mayor Reinert noted the large amount budgeted for office supplies and asked if bids were taken for some of these items. It was explained that we use the Hennepin County bid when possible and we do have a contract for the purchase of machine supplies. This services is contracted with Anoka County and will raise 6% for 1990. The cost is based on the number of parcels in the City. Acting Mayor Reinert asked if there was a difference in assessing costs for non - residential property. Mr. Schumacher explained that it was the same for all Anoka +© COUNCIL BUDGET WORK SESSION DECEMBER 20, 1989 Legal Printing Consultants County cities using the County services. Mr. Schumacher told the Council that our appointed County Assessor Jeff Neinaber is very good and knows this City well but is in a salary bind with the County. He said he would like to put some pressure on the County regarding Mr. Neinaber's salary so that he will not look for work elsewhere. Acting Mayor Reinert suggested that Mr. Schumacher find out what Mrs. Langfield has to say on the matter. A large portion of this concerns the requirements of the truth and taxation regulations. Mr. Schumacher noted that this City must certify that the City followed the procedures of the Department of Revenue and they will bill the City for the time in preparing the certificate. The Economic Development Committee has another $10,000 to finish some items started in 1989. They had wanted $25,000 for their 1990 needs. Mr. Bisel explained that the EDC would like to put some of their efforts into effect in attracting business and commercial interests to this City. This City cannot survive on residential taxes. Acting Mayor Reinert noted that there is $15,000 for Surface Water Management. He asked if all monies budgeted for 1989 was spent. He said he would like the end of the year figures to determine if everything has been spent for all of these items. Mayor Benson had arrived and asked for end of the year figures for all departments in the 1989 Budget. Mr. Bisel asked if additional COUNCIL BUDGET WORK SESSION DECEMBER 20, 1989 City Planner Police Department PAGE 4 monies should be budgeted for EDC. After further discussion on this item it was decided to wait to see if there is any year end surplus. Mr. Reinert said he would like to see what the money is going to be spent for and Mr. Bisel said the EDC should take an intersection and decide what they would like to see built there and then go and recruit the business and not wait for someone to come and set up their business. The item Other Consultants was discussed noting that a policy should be set as to what type of service groups will be supported by the City. Mr. Reinert asked about the City Directory and noted that it could be sold to home builders and other interested parties and this money could be used for other EDC publications. Mr. Schumacher noted that there are no changes in this area except to re- allocate salaries from the Administration Department. Mr. Bisel asked about the item for Contracted Services. It was explained this is for connecting to the State. A request for a new typewriter was noted. Mr. Bisel asked if typewriters were being used a lot. Chief Campbell explained that the Officers use them for their reports because there are not enough computer terminals. There is one additional terminal in the 1990 Budget. Uniform Allowance was discussed. Chief Campbell explained that the Officers are issued one check each year for the full allowance. iJ COUNCIL BUDGET WORK SESSION DECEMBER 20, 1989 The Computer Maintenance Agreement was discussed. Chief Campbell explained that this is a 24 hour contract since the main computer is connected to the state and must be operational at all times. Mr. Bisel suggested that it would be almost cost effective to have backup equipment rather than such an expensive contract. ITEMS THAT HAVE BEEN REQUESTED BY DEPARTMENT HEADS AND ARE NOT INCLUDED IN THE 1990 BUDGET Mr. Schumacher explained each item. Mr. Bohjanen asked Chief Campbell if he was looking at potential development in the City and if this was the reason he had requested an additional police officer. Chief Campbell said no, rather various guidelines and the recent Police Task Force study in Lino Lakes suggests that the Police Department is not yet staffed as it should be. He is trying to increase his staff so that he can have two Officers on duty per shift. He noted in December, 1989 because of vacations and sickness, the situation became such that there was one car and one officer on duty for each shift. He also noted that the amount of calls are increasing and the calls are getting more serious. Mr. Neal said his objective as Councilman is to have a good Police Department, Fire Department and ambulance service. He noted that on one day recently there were four heart attacks in this community. Mr. Schumacher noted that not all requests can be funded. Last year the levy limit was cut and this has restricted the 1990 levy limit. The City has lost $148,000 in state aid shifts, the Council is addressing the issue of lowering taxes and there are the normal growing pains to consider. If another police office is added, this would mean something would have to be cut from another department. Mayor Benson noted that homeowners cannot continue to bear the rising tax costs and suggested that maybe the Council should concentrate on commercial /industrial development and consider restricting new home building. Mr. Reinert suggested considering a moratorium on new housing development. Mr. Bisel suggested setting up a ratio of housing development to commercial development. Mr. Neal asked Chief Campbell when he would like to add another officer. Chief Campbell said early enough to get him trained for the summer problems. Mr. Bisel asked at what point does it become economically unfeasible to operate our own department? Chief Campbell PAGE 5 1 1 1 COUNCIL BUDGET WORK SESSION DECEMBER 20, 1989 said that costs would be only one consideration if deciding to change the operation of the Police Department since the residents would not like to see anything less than what they now have. Mayor Benson asked about a quad city department. Chief Campbell said this could be a good way to go, however, there are some problems with the Circle Pines /Lexington Police Department. Chief Campbell said he thought that Lino Lakes was unique and would not like to see any joint powers agreement. However, Columbus Township would like to have the services of the Lino Lakes Police Department. Mr. Reinert said that a combination police department could do away with a lot of duplication in services. Mr. Bisel questioned the need for another new squad car. Chief Campbell explained that he would like the cars to be replaced at about 100,000 miles. Mr. Schumacher said he had to set priorities in establishing the 1990 Budget. He noted other vehicles in the Police Department and felt with the budget he is proposing the Police Department would not fall behind in this area. Mr. Reinert asked if there was something in the Police Department Budget that Chief Campbell would be willing to cut to add the third squad car. Chief Campbell said he could see nothing to cut. There was additional discussion on this matter with Mr. Bisel saying that he felt strongly that the Council missed the boat with the approval of the 1990 Centerville contract. Mr. Reinert asked what impact would the 1990 Proposed Budget have on taxes. Mr. Schumacher explained that with the information currently available, he is hoping there will be no tax increase. He felt that he was proposing a generous budget and no department was getting all they wanted but it would keep the citizens happy with current services. Mr. Bisel said that he did not have any objection to an additional officer and asked what would have to be cut to accommodate this item. Mr. Schumacher explained that something would have to be cut from another departmental budget. Mr. Reinert asked about reciprocal agreements with other departments. Chief Campbell explained that we do have some however, when something is happening in another community there is also something happening in Lino Lakes. Mr. Schumacher explained that there may be no levy limits in 1991. This could be a good time to add additional services. However, for 1990 we have to stay within our levy limits and if these items are added to the Police Department, some other department will have to be cut. Mr. Reinert asked if it is being proposed to cut something from another department to fund the Police Department requests? Chief Campbell said he is not trying to play one department against another but felt it was his duty to bring the concerns of the Police Department to the attention of the Council. Mr. Reinert noted that the Council has been generous with the Police PAGE 6 COUNCIL BUDGET WORK SESSION DECEMBER 20, 1989 Department since Chief Campbell became Chief. He did not wish to offend the Chief but said he did not know the answer for funding his needs. Mr. Bisel also noted that the Police Department has come a long way and said he would rather have Mr. Schumacher make these budget decisions. Mr. Reinert suggested that possible funding could come from any surplus from the 1989 Budget. Mr. Neal asked how many tickets would this new officer have to write to fund his position? Chief Campbell said that revenue from tickets is part of the Police Budget revenue and noted that in some cities officers must pick up a stated number of violators to fund his position. (Chief Campbell did not offer a position on this matter) Mr. Bisel noted the growing drug problem and said he felt that maybe another officer could be added in the summer to handle the juvenile drug problem if can be worked out through the administration process. It would have to come from what is left in the 1989 surplus. Mr. Reinert said that the Public Works Department is an important department and noted that it is really conservative. Chief Campbell said again that he felt it was his duty to bring these concerns to the Council. Mr. Reinert said he felt budget problems would only get worse unless a better tax base is built. Mr. Bohjanen felt that the City should not get behind in the Police Department. Mr. Bisel said the whole point of the matter is that the City needs a better tax base to provide the additional services. He asked if this City should levy to the maximum? Does the City want to cut taxes? If we cut the levy, will the City be worse off next year? He felt the point is if the City goes with the current levy, it will take care of present needs and if there is any shuffling to do, let the Administrator and Department Heads take care of it. Mr. Reinert said it appears that the proposed budget will not raise taxes and the budget itself looks good. Mr. Bisel asked about the reconstruction of 24th Avenue (Elmcrest). Mr. Schumacher explained that this could also be funded from any 1989 surplus. Mr. Schumacher said he is drafting a letter to the City of Hugo letting them know that Lino Lakes is proceeding with a feasibility study. Mr. Bisel asked what would happen if there is no surplus, $2,500 worth of engineering costs could be lost if this improvement is not carried forward. Mayor Benson left the meeting at 6:30 P.M. and Mr. Reinert resumed the Chair. Acting Mayor Reinert asked that all concerns be taken care of at this evening so that the public hearing on December 26th will be short and smooth. Mr. Neal raised a concern about Rustic Lane. It was PAGE 7 1 COUNCIL BUDGET WORK SESSION DECEMBER 20, 1989 explained that this matter concerns the Surface Water Management Plan for that area. Mr. Schumacher explained where this matter currently stands and Mr. Neal explained that the landowners do not understand the process. Mr. Schumacher explained that there is an established policy and Mr. Neal said that they would like to see a copy of it. Mr. Neal said that they will be before the Council under Open Mike at the December 26th meeting requesting a copy of this policy. Acting Mayor Reinert suggested that Mr. Hawkins be informed of this matter so that he can be prepared. Mr. Schumacher continued with reviewing the budgets of other departments: Public Works Department Mr. Neal asked how clothing allowances were handled. Mr. Volk explained that each employee buys his own clothing as it is needed and then they are reimbursed. Mr. Neal question the line item "Small Tools ". Mr. Volk explained. Mr. Bisel asked if the equipment was in good shape. Mr. Volk said yes. Mr. Neal asked if the City was still salt /sand to the City of Centerville. Mr. Volk said yes, their maintenance people are very nice to work with. Street signs were addressed, Mr. Volk explained that the budget contains money for replacement of signs. Developers pay for the signs that go into their new developments. It was noted that lighting is needed where vehicles are parked at night. Pine Street is due for graveling this summer. This cost is split with Columbus Township. Mr. Bisel asked if this street was on SEH's program. Mr. Volk said no. There was discussion regarding the Pine Street extension. Columbus Township is refusing to participate in the maintenance of this portion of the street. Acting Mayor Reinert suggested that this matter be resolved as soon as possible. Mr. Neal asked about COUNCIL BUDGET WORK SESSION DECEMBER 20, 1989 the pick up with a plow and Mr. Volk said that this is included in the Certificate of Indebtedness. Mr. Neal asked about the air compressor and Mr. Volk explained that it will be pulled behind a vehicle so that it can be taken to the area where it is needed. Mr. Neal asked about a portable crane. Mr. Volk explained it is used at the lift stations. Animal Control Anoka County Humane Society will continue service. - Mr. Schumacher was instructed to look at the year end surplus to try to obtain funds to fund the following items: 24th Avenue Improvement Project, EDC requests, Police Department requests. Ms. Romocky briefly outlined the Revenue portion of the 1990 Budget. Basically all revenues outside of the levy remained the same for 1990. Mr. Bohjanen moved to adjourn at 7:00 P.M. Mr. Bisel seconded the motion. Motion carried unanimously. PAGE 9