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HomeMy WebLinkAbout12/12/1990 Council Minutesi55 RECONVENED 1991 COUNCIL DECEMBER 12, 1990 BUDGET PUBLIC HEARING Mayor Bisel called a special meeting of the Lino Lakes City Council to order at 6:30 P.M. Council Members present: Neal, Kuether, Reinert, Bohjanen. Council Members absent: none. City Accountant, Paula Schloer; City Administrator, Randy Schumacher and Clerk- Treasurer Marilyn Anderson were also present. The purpose of the special meeting was to reconvene the 1991 Council Budget public hearing, take further public testimony and set the 1990 levy payable in 1991 and the 1991 Budget. Mayor Bisel introduced the Council and staff and explained the procedure for the public hearing. He also explained the process of putting together the 1991 Budget and noted that the 1991 levy would be set this evening. Mayor Bisel reconvened the 1991 Budget public hearing at 6:33 P.M. Stephen Andre, 495 Ash Street told the Council that he was concerned that the Council may be spending money they do not have. He noted there is no money tree. Mr. Andre asked the Council to hold spending to current level for a year or so until state and federal concerns have been determined. He asked the Council to be conservative. Mr. Andre also explained people trying to find his address have a problem because Ash Street is known as County Road J on the south side of the street. He asked that Lino Lakes rename Ash Street to County Road J so that residents on both sides of the street can use the same name. Mayor Bisel explained that the proposed increase in the budget is for the bond payment for the new fire station. He noted that the City has already bonded for the new fire station and the bond payments must be paid. Scott Clochie, 6637 Pelican Place asked where the City planned to build the new fire hall. Mayor Bisel explained that it would be in the 7700 block of Lake Drive on the same property where the current fire hall is located. Mayor Bisel explained that the Centennial Fire District determines the location of fire halls within the District. Mr. Clochie said that he had looked at the map of Lino Lakes and it appeared that one (1) fire hall is probably not enough. Mayor Bisel explained that there is a fire hall in Centerville and a fire hall in Circle Pines. These two PAGE 1 1 1 1 1 1 RECONVENED 1991 COUNCIL DECEMBER 12, 1990 BUDGET PUBLIC HEARING (2) fire stations do provide backup assistance. Mayor Bisel also noted that locations of fire halls is determined on a needs basis and response time is also a key factor. Mr. Clochie explained that he has submitted an application for a position as a volunteer fireman. Judy Knabe, 6483 - 20th Avenue urged the Council to be conservative and noted that she believed that the economy is now in a recession. Mayor Bisel said that the City is growing and the 1991 Budget must contain some flexibility for adjustments. He also noted that the City is trying to control the growth by promoting infill of public utilities. There were no further comments from the audience. Mayor Bisel expressed appreciation for all of the public input into the 1991 Budget. He also noted that this is not an easy task for the Council. He asked that residents get involved with the state, federal, county and school district budget processes. Mayor Bisel noted that Lino Lakes is approximately 25% of the total property taxing entities. He explained that although Lino Lakes' share is small, the City officials hear all of the concerns. Mayor Bisel explained that the proposed levy is $1,775,138.00. This is an increase of 16.03% over the previous years levy. In the Council packet was a sheet outlining three (3) levy options for the Council. The first option is to take the entire increase in levy of $114,947.00 from the Reserve. This would reduce the levy to $1,660,191.00 for an increase of 8.25% over the 1989 payable 1990 levy. The second option would be to take $57,283.00 (one half (1/2) the increase in levy) from Reserves. The levy would be $1,717,473.50 for an increase of 12.26 %. The third option would be to take nothing from the Reserves and to levy the entire amount of $1,775,138.00. The increase in levy would be 16.03 %. Mayor Bisel explained that the 1991 Budget is a "bare bones" budget. There is nothing in the budget for additional personnel and expenditures in other areas are limited. The increase in levy of $114,947.00 is to pay the bond payment for the new fire station. Council Member Reinert noted that if the Council did not authorize anything new in the 1991 Budget, the City would still realize additional new dollars in levy due to the growth within the City. Mayor Bisel noted that this was true, however, those additional dollars will be used to maintain current services. If the Council did not authorize additional dollars to pay the fire station bond payment, the City would be loosing dollars due to inflation. Council Member Kuether noted that the Council "whittled" away at PAGE 2 15 5l RECONVENED 1991 COUNCIL DECEMBER 12, 1990 BUDGET PUBLIC HEARING the 1991 Budget and asked where those dollars went? She asked why the City needs additional dollars. Mr. Schumacher explained the reduction in several areas of the 1991 Budget and noted that some reserve had been set aside for additional personnel. Although some areas of the 1991 Budget were reduced, reserves were maintained making the total 1991 Budget nearly the same as the one last considered. Council Member Reinert noted that the impact to tax payers would be minimal and suggested that additional cuts be made in the 1991 Budget. Mayor Bisel noted that once the levy is set the 1991 Budget can be further reduced. Council Member Reinert explained that he was not opposed to using some of the Reserves because of uncertainties facing this Council. He said he felt Reserves were for times of uncertainty. Mayor Bisel explained that the amount of money taken from Reserves can be any amount agreed upon by the Council. The figure stated in the handout in Option No. 2 can be adjusted. Council Member Kuether said she agreed with Council Member Reinert and said she was hopeful that taxes would go down. She said she was uncomfortable taking the entire increase in levy from Reserves. Mayor Bisel noted that the State is looking at "dipping" into their "rainy day" fund. He noted that this City must maintain its Reserves to continue the current quality of services. Mr. Schumacher noted that the City portion of the tax levy was the lowest it had been in the past six (6) years. Council Member Bohjanen asked what the current Reserve balance is and Mr. Schumacher explained approximately $1,030,000.00. Mayor Bisel reminded the Council that they must maintain one half (1/2) of a years operating budget in Reserve because the City does not have any income until June. Mr. Schumacher explained that it appears state aid may be further reduced and this will not help tax payers or the City offices. Mayor Bisel noted the trend to push the tax burden down to the local level to take pressure off the legislators. He noted that there appears to be a movement to keep money in the local area. Ms. Schloer explained that she had used her best guess when preparing the projected tax affect on homeowners. She noted that final captured value for Tax Increment and HACA figures are not available from the county and state. Mr. Andre noted that the Council is talking about a 16% or 18% PAGE 3 1 1 1 1 1 1 RECONVENED 1991 COUNCIL DECEMBER 12, 1990 BUDGET PUBLIC HEARING increase. He asked if this was an increase in the budget. Mayor Bisel said the increase in the budget is about 7% and if the Council chooses Option No. 2, the levy will increase approximately 12.26 %. Council Member Reinert moved to set the 1991 levy at $1,717,473.50 and take $57,283.00 from Reserves making the levy a 12.26% increase over the previous years levy. Council Member Neal seconded the motion. On a roll call vote, motion carried unanimously. Council Member Reinert moved to adjourn the public hearing at 7:12 P.M. Council Member Kuether seconded the motion. Motion carried unanimously. Mr. Schumacher reviewed the proposed 1991 Budget and indicated where he made cuts in individual departments. They are as follows: Mayor and Council (Misc. Subscriptions & Dues) ( 500.00) Administration (Finance Director to be hired in June) (17,096.00) Consultants (Forest Lake Youth Service) ( 1,200.00) (Teen Center) ( 2,739.00) (RISE) ( 1,000.00) (Mediation Services) ( 275.00) (Historical Society) ( 500.00) (Economic Development) (10,000.00) (Auditor) ( 7,000.00) TOTAL DECREASE IN CONSULTANTS (22,714.00) Planning Department (Cut Planner to 60%) (20,772.00) Police Department (CSO Health Insurance) ( 2,700.00) (Holiday Pay Increase) ( 6,310.56) TOTAL INCREASE TO POLICE DEPARTMENT 3,610.56 Parks Department (Recreation Education Inc.) 4,714.00 TOTAL NET DECREASE TO GENERAL FUND BUDGET (53,876.76) Mr. Schumacher noted that there will be no new personnel. The Public Works Director had wanted an additional person in Public Works and the Chief of Police had requested two new police officers. Both requests are not included in the budget and the finance director has been eliminated as well. In addition, the EDC responsibilities of the Planner have been eliminated and $20,700.00 has been taken out of the Planner's budget. Mayor Bisel asked if it was conceivable that the Building Inspector would need additional help. Mr. Schumacher explained that an assistant had been hired and is included in the 1991 Budget. PAGE 4 158 159 RECONVENED 1991 COUNCIL DECEMBER 12, 1990 BUDGET PUBLIC HEARING Council Member Kuether asked if EDC was eliminated from the Planner's budget, where did it go? Mr. Schumacher explained that the only item left in the Planner's budget is planning at 100%. Council Member Kuether asked again if $20,700.00 was eliminated from the Planner's budget, where did it go? Mr. Schumacher explained that it was put in the Reserve for new Personnel. Mayor Bisel explained that Mr. Schumacher has presented his proposed budget cuts and said that the Council must now look through the 1991 Budget again. Council Member Bohjanen said that he had looked through the budget and felt that services such as fire and police must be maintained at the present level. Council Member Reinert said he felt the fire protection is now good and although we do not have an excellent police department we do have good protection. Council Member Kuether said she felt the this City is loosing ground in this area. She noted that even though Lino Lakes will not be serving Centerville, this City is far from having an adequate staff of police officers. Council Member Reinert said he felt we were in good shape and we do not get many complaints. Council Member Reinert said that he is trying to be conservative. He noted that there have been some years that the Council was very good to the Public Works Department and there were years that the Council was very good to the Police Department. However, this year it will be very tight. He said he felt that if any department wanted to add another staff position, the department head must take the money from some other place in his budget. Council Member Bohjanen said he did not want to play "catch up ". Council Member Kuether noted that police officers require training time. She said she did not want to get into a position where an officer was needed now, but would have to be hired and then wait the six (6) months needed for training. Council Member Bohjanen said that if this City is really interested in looking for commercial /industrial businesses, we had better be prepared for it. Mayor Bisel noted that economic development does not happen over night. There will be time to prepare for this type of growth. Council Member Reinert noted that good police and fire protection is important to businesses who are looking at relocating. Council Member Bohjanen said that Mr. Schumacher had done a good job in reducing the proposed 1991 Budget. Mr. Schumacher explained that the State of Minnesota is considering not hooking up to the sewer and water system at this time. They have also considered not paying their assessments at this time. Mr. Schumacher reminded them that they did petition PAGE 5 1 1 1 1 1 RECONVENED 1991 COUNCIL DECEMBER 12, 1990 BUDGET PUBLIC HEARING for the services under Chapter 429. They agreed that assessments will be paid in a timely manner. However, the prison will not be hooking up to the utilities at this time. This will delay the payment of SAC charges and will not help the Lino Lakes Sewer and Water Fund. Council Member Reinert said that he would like to freeze everything and continue to operate for the next six (6) months and then review the situation. Council Member Kuether said she would like to review the situation in three (3) months. Mayor Bisel said he wanted to look at all franchises and agreements. He expressed concern that notification periods be adequately researched in all agreements. Mr. Schumacher will prepare a list of all franchises and agreements and have this ready for the first meeting in January. Mr. Schumacher explained that he has asked the City Auditor to put together a guideline to determine what to do with the Circle Pines gas franchise. This should be available for the first meeting in January. Mayor Bisel asked all Council Members to think about creative ways to enhance the revenue portion of the 1991 Budget. He suggested that the City look into imposing a tax on the Chomonix Golf Course and possibly the Chain of Lakes Open Space. He noted that users of these facilities also use the Lino Lakes streets and police and fire services. He noted that this may take legislative action. Mr. Schumacher recapped the major reductions in the proposed 1991 Budget. There will be a hiring freeze, $20,700.00 has been eliminated from the Planner's Department. This means the Planner will be reduced to a 60 - 65% basis. A reporter in the audience asked if the Planner would be working thirty (30) not forty (40) hours per week. Mr. Schumacher said his duties would be planning only. Mayor Bisel asked what happened to EDC? This question was not answered. Council Member Reinert asked about the cuts in the Forestry Department. Mr. Schumacher explained that $5,500.00 had been cut out of Capital Outlay. The tree planting program was reduced. Council Member Reinert suggested cutting $5,500.00 from Forestry and let the department head decide where the cuts should be. Mayor Bisel explained that the proposed 1991 Budget of $2,296,546.00 represents a 7.08% increase over the 1990 Budget. Council Member Kuether moved to approve the 1991 Budget of PAGE 6 1'60 161 RECONVENED 1991 COUNCIL DECEMBER 12, 1990 BUDGET PUBLIC HEARING $2,296,546.00. Council Member Neal seconded the motion. On a roll call vote, motion carried unanimously. Council Member Kuether moved to adjourn at 7:55 P.M. Council Member Neal seconded the motion. Aye. These minutes were considered, corrected and approved at a regular Council meeting held on January 14, 1991. d(4.26./.161/ rely f G. Anderson, Harold L. Bisel, Clerk- reasurer Mayor PAGE 7