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Home My WebLink About08/29/1991 Council Minutes63 BUDGET WORK SESSION CITY OF LINO LAKES COUNCIL MINUTES AUGUST 29, 1991 DATE August 29, 1991 TIME STARTED 8:43 A.M. TIME ENDED • 9:50 A.M. MEMBERS PRESENT: Bisel, Bohjanen, Kuether, Neal, Reinert MEMBERS ABSENT : None Staff Members present: City Administrator, Randy Schumacher; Accountant, Paula Schloer and Clerk - Treasurer Marilyn Anderson. CONSIDERATION OF THE 1992 PRELIMINARY LEVY Mr. Schumacher explained that the Council set December 5, 1991 as the public hearing date for the 1992 Budget. After consulting calendars, the Council agreed to set December 12, 1991 as a backup date in the event the public hearing is continued. Mr. Schumacher explained that the Council must adopt a preliminary levy before September 3, 1991. The State of Minnesota has determined that the levy for Lino Lakes for 1992 will be $1,557,076.00. The City cannot levy above this figure. However, the City can levy less. Even though the population of Lino Lakes is growing each year, with the reduction of state aids, this means that the City will actually be receiving $4,000.00 less in 1992 in than in 1991. The questions is, if the municipal population is growing, why should the City get less aid? The money is not being re- routed to the school districts as was first thought. Council Member Reinert noted that the legislature is forcing municipalities to go deeper in debt which will create deteriorating cities because services and maintenance will be reduced. Mayor Bisel asked what the state was doing with the money. He noted that the state should be suffering along with the local municipalities. There was further discussion regarding the states attempt to "dip" into reserves of municipalities. It was noted that apparently legislators do not understand the ramification of the legislation that they pass each year. Mr. Schumacher explained that three (3) areas of the budget must be particularly addressed by the Council. These areas are PAGE 1 1 1 1 1 1 1 BUDGET WORK SESSION AUGUST 29, 1991 engineering, recycling and recreation. Mr. Schumacher addressed the Capital Outlay portion of the preliminary 1992 Budget. He noted that the original draft contained $250,000.00 of new equipment. This has been reduced to $135,000.00. A handout was given to the Council detailing the reduced Capital Outlay portion of the budget. Mr. Schumacher explained that a Certificate of Indebtedness would be purchased for this expense. The Certificate of Indebtedness would be repaid over three (3) years. The 1991 payment would be levied and this levy would be above the levy that was calculated by the state. The total of these two (2) levies would not increase the City portion of taxes because of the increase in valuation of the City. However, this City has no control over what the school districts or the county is doing. Hopefully the total tax bill will be reduced for Lino Lakes residents. Council Member Neal asked about getting bids to mow and maintain the parks. He felt this may reduce the cost of maintaining parks. Council Member Neal noted this could also be done with snow plowing. Mr. Schumacher said he did not know of any other metro area municipal that does this. Mayor Bisel asked about leasing services. Mr. Schumacher said this had been done by the State near St. Cloud. This first year of the lease was fine, but significant increases in the cost of the lease occurred each year thereafter. Council Member Reinert noted that this City is in a bind this year and does not know what will happen next year. He said he would like the Department Heads to support the Council and be creative and "stretch out a bit ". He asked if the Police Department could stretch the service of a squad for an additional six (6) months. Mr. Schumacher explained that the Hennepin County bid occurs only once a year which may make this suggestion difficult to manage. Council Member Reinert suggested that the Police Department take the Administration car and use it as an unmarked squad car and lease another car for Administration. Mr. Schumacher explained that the Administration car is not equipped with a police package and would not be suitable for that use. Council Member Kuether noted that both the Police and Civil Defense areas had been reduced in the preliminary budget. She also noted that there were areas where computers were to be added. She asked if computers were more important the Police and Civil Defense? Mayor Bisel explained that the City is basically covered by warning sirens and it is possible that the VFW will again assist in the purchase of a siren. Mayor Bisel felt the Police Department would not be hurting if they could purchase PAGE 2 6.4 65 BUDGET WORK SESSION AUGUST 29, 1991 another vehicle. Council Member Reinert asked if there will be a surplus from the 1991 Budget. Mr. Schumacher explained that all departments are within budget. If there is a surplus in any budget it will be added to the overall City surplus. Council Members addressed the loss of the City of Lexington Building Inspector Contract and the Centerville Police Contract. Council Member Kuether explained that is one of the reasons she voted against reducing building inspections fees for the new Centennial Elementary School. Council Member Kuether asked which departments bring revenue into the City? Methods of increasing revenues were discussed. Suggestions were charging a fee for some police services such as opening locked car doors. Mr. Schumacher handed out Resolution No. 89 - 91 Certifying the 1992 Preliminary Levy and explained the contents of the resolution. He noted that the Lino Lakes portion of the taxes would be slightly reduced with this levy. The Certificate of Indebtedness for the 1992 Capital Outlay was again addressed. Council Member Reinert asked what would happen if a department head estimated a vehicle would cost $40,000.00 and the bid came in for $35,000.00. Mr. Schumacher explained that only the $35,000.00 can be spent. The balance would remain in the Certificate of Indebtedness and could be used for other qualifying purchases or used to reduce the amount of the Certificate of Indebtedness. Council Member Reinert asked that the Department Heads really work with the Council this year. Mayor Bisel said he would like the Administrator to work with the Department Heads and then suggest a dollar amount for each department for the final 1992 Budget. Council Member Kuether said she would like input in the final 1992 Budget. Mr. Schumacher explained that in preparing the preliminary 1992 Budget, he tried to meet all requirements and reduce taxes. Council Member Reinert said he did not get this feeling from the Department Heads. Council Member Bohjanen said he felt that by adopting this resolution today, only the first step of the process is being considered. The 1992 Budget will not be finalized until December and only what is necessary will be used of the $135,000.00 Certificate of Indebtedness. Council member Bohjanen moved to adopt Resolution No. 89 - 91. Council Member Kuether seconded the motion. PAGE 3 1 1 1 BUDGET WORK SESSION VOTING ON THE MOTION: Bisel Neal Bohjanen Reinert Kuether AUGUST 29, 1991 Abstained: none. Motion carried unanimously. Resolution No. 89 - 91 can be found at the end of these minutes. CONSIDERATION OF 1992 PRELIMINARY GENERAL OPERATING BUDGET Mr. Schumacher explained that a preliminary 1992 Budget has been prepared. In this case, the Council must adopt a final budget at the December 5, 1991 public hearing or if the public hearing is continued to December 12, 1991 the final 1992 Budget can be adopted at that time. The Council has full control over the budget, they may reduce it or add to it. The levy, however, can be more than the levy limit. Mr. Schumacher includes a 10% Council Member Council Member noted that the preliminary budget he has prepared increase. Bohjanen moved to adopt Resolution No. 90 - 91. Kuether seconded the motion. VOTING ON THE MOTION: Bisel Neal Abstained: none Bohjanen Reinert Motion carried unanimously. Kuether Mr. Schumacher asked the Council if they wished to hold several shorter meetings to prepare the final 1992 Budget or if the Council would rather set aside one (1) full day and complete the 1992 Budget in one (1) day. The consensus of the Council was to finalize the 1992 Budget in a one (1) day special Council session. Mr. Schumacher asked the Council Members to call him if they have questions on the matters presented this evening or the Preliminary 1992 Budget. Ms. Schloer asked the Council is they would like a work session on determining tax capacity and market value. Ms. Schloer will prepare this educational session. PAGE 4 66 67 BUDGET WORK SESSION AUGUST 29, 1991 Council Member Reinert moved to adjourn at 9:50 A.M. Council Member Neal seconded the motion. Aye. These minutes were considered, corrected and approved at a regular meeting of the City Council on September 23, 1991. 1 Ala Mari yn4G. Anderson, Clerk- Treasurer Harold L. Bisel, Mayor PAGE 5 1 1 1 Council member Bohjanen introduced the following resolution and moved its adoption: CITY OF LINO LAKES RESOLUTION NO. 89 -91 RESOLUTION CERTIFYING THE PRELIMINARY 1991 TAX LEVY, COLLECTABLE IN 1992. WHEREAS, the City of Lino Lakes is in need of certain funds to pay expenses, obligations for General Fund operating costs anticipated in the year 1992, and WHEREAS, the City of Lino Lakes is in need of certain funds to pay expenses towards Certificate of Indebtedness' obligations, and WHEREAS, the City of Lino Lakes is in need of certain funds to pay expenses towards the Public Project Revenue Bonds, and WHEREAS, the City of Lino Lakes is restricted by levy limitations imposed upon it by the State of Minnesota, NOW THEREFORE BE IT RESOLVED, that the City of Lino Lakes, Anoka County, Minnesota, hereby does levy on a preliminary basis the following upon the taxable property in said City of Lino Lakes, to -wit: 1. Total amount levied in the year 1991 to be spread for taxes due and payable in the year 1992 is in the total sum of $ 1,865,187.75 2. The total amount above levied is for the following purposes: LEVY LIMIT $ 1,557,076.00 General bonded Debt Equipment Certificates of 1989 Equipment Certificates of 1989B Public Project Revenue Bonds Equipment Certificates of 1990A Equipment Certificates of 1991A(E) Total General Obligation Bonded Debt TOTAL LEVIES Page 1 77,458.00 69,791.00 81,139.00 23,260.00 56,463.75 308,111.75 1,865,187.75 6 69 BE IT FURTHER RESOLVED by the Lino Lakes City Council that the general fund operating levy and special levies for Equipment Certificates and the Public Project Revenue Bonds as reviewed by the City Council represents the basis for this levy. Individual department budgets are subject to final approval by the City Council and shall be authorized by separate action prior to December 30, 1991. Adopted by the Lino Lakes City Council this 29th day of August, 1991. (-)q 6:„ s<_e>c_ -2 Marilyn G. Anderson, Clerk - Treasurer Harold L. Bisel, Mayor The motion for the adoption of the foregoing resolution was duly seconded by Council Member Kuether and upon vote being taken thereon, the following voted in favor thereof: Neal, Kuether Bisel, Reinert, Bohjanen. The following voted against same: none. Where upon said resolution was declared duly passed and adopted: (E) - Denotes estimated levy amount Page 2 1 1 1 Council member Bohj anen following resolution and moved its adoption: CITY OF LINO LAKES RESOLUTION NUMBER 90 -91 introduced the RESOLUTION ADOPTING THE PROPOSED 1992 ANNUAL OPERATING BUDGET FOR THE CITY OF LINO LAKES. WHEREAS, Pursuant to State Statute, the Lino Lakes City Council is required to adopt a resolution setting out proposed preliminary anticipated revenues and expenditures for the upcoming fiscal year, NOW THEREFORE, BE IT RESOLVED: That the following proposed General Fund operating budget be adopted for 1992: 1992 PROPOSED BUDGET REVENUES: Levy State aid MSA Roads City Services Police Receipts Refunds and Reimbursements Escrows North Central Cable TV Circle Pines Gas Anoka Co. Solid Waste Administrative Charges Interest on Investments SAC Reserves TOTAL PRELIMINARY ANTICIPATED REVENUES EXPENDITURES: Mayor and Council Elections Administration Assessor Legal Printing Consultants Enginneering /Planning /Economic Development Planning and Zoning Government Buildings Charter Commision Police Fire Building Inspections Civil Defense Animal Control Public Works Solid Waste Page 1 $ 1,557,076.00 87,511.00 13,900.00 404,209.00 132,200.00 23,000.00 48,500.00 9,131.00 16,000.00 24,000.00 90,000.00 50,000.00 500.00 87,039.79 2,543,066.79 43,285.00 12,780.00 283,792.16 27,615.00 11,600.00 101,616.00 123,512.00 3,594.00 136,026.00 1,350.00 627,924.00 206,253.17 57,142.81 4,000.00 4,275.00 515,494.00 30,500.00 70 71 Resolution Cont. Expenditures Continued Recreation 51,503.05 Parks 199,070.60 Park Board 3,624.00 Forestry 46,825.00 Cable TV 1,285.00 Salary Reserve 50,000.00 TOTAL PRELIMINARY ANTICIPATED EXPENDITURES 2,543,066.79 Adopted by the Lino Lakes City Council this 29h day of August 1991. „;;12y0_ a,s2J Marily_ G. Anderson, Clerk - Treasurer Harold L. Bisel - Mayor The motion for the adoption of the foregoing resolution was duly seconded by Council Member Kuether and upon vote being taken thereon, the following voted in favor thereof: Neal, Kuether, Bisel, Reinert, Bohjanen. The following voted against same: none. Where upon said resolution was declared duly passed and adopted: Page 2