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HomeMy WebLinkAbout11/12/1994 Council MinutesCOUNCIL WORK SESSION NOVEMBER 12, 1994 DATE: TIME STARTED: TIME ENDED: MEMBERS PRESENT: MEMBERS ABSENT: OTHERS PRESENT: MINUTES LINO LAKES CITY COUNCIL BUDGET WORK SESSION NOVEMBER 12, 1994 9:15 A.M. 11:00 A.M. Reinert, Neal, Kuether, Elliott, Bergeson None R. Schumacher, M. Vaske, P. Schloer, D. Pecchia, R. Kaulfuss Mr. Schumacher presented to the Council a 1995 General Fund expenditure and revenue summary sheet, and a sheet reflecting the recommended new requests. Mr. Bergeson asked if it was possible to determine how much of the increase in value came from new construction (growth) versus assessed value increase. Ms. Vaske said that the County of Anoka was not able to determine this information. Mayor Reinert stated that he would request that the Council consider moving into the 1995 budget gradually, for example, hiring police personnel later in the year versus January 1, so that the 1995 budget wouldn't have the impact of a full years' cost. Mr. Schumacher said that that would be possible, but to be aware that the 1996 budget would have the full impact of a full years cost. Mayor Reinert stated that the Federal government is tuning back and that local governments should also think about doing the same. Mayor Reinert asked if there would be any surplus in 1994. Mr. Schumacher stated that revenues for 1994, specifically building permit revenues, were down substantially. Expenditures were close to on line. Mayor Reinert commented that if revenues were down, the city should look at operations that could be slimmed down. Ms. Kuether agreed with Mayor Reinert, stating that the city should look at areas where cuts could be made. Mayor Reinert suggested that the city put a freeze on spending to figure out what the surplus would be, if any. Mr. Bergeson asked staff to make a year end projection of any available surplus. Mayor Reinert stated that he did not want to raise taxes, and that he preferred using General Fund surplus to finance a portion of the 1995 budget. Mr. Schumacher reminded the City Council that the City has a cash flow reserve policy requiring the City to have adequate reserves on hand which would enable the City to retain its Page 1 1 1 1 1 1 1 financial independence and integrity during adverse economic conditions. Using reserves to pay for operating costs would be a change in this policy of building up the General Fund reserve requirement. Mr. Bergeson stated that he was concerned that, to ease an angry public, the Council, is back -peddling by planning to use reserves to pay for operating costs, when other taxing jurisdictions, for example, the school district, are not doing anything to cut back their spending. He was also concerned that it would be fiscally irresponsible to use reserve spending every year. Ms. Kuether stated that she felt that the City's bubble is ready to burst. Mayor Reinert asked in what areas? Mr. Schumacher stated that Economic Development has increased the 1994 budget from 1993 by over $100,000.00, two new police officers could eventually add approximately another $100,000.00 to an already stressed budget. Ms. Kuether stated that the City must start looking at areas in the budget that could be paid for by other sources, for example, road overlays. She felt that taxes should not be paying for this type of expenditure and that staff should address this issue to the Charter Commission, making them aware of the current situation. Mr. Schumacher stated that he and Tom DeWolfe, Superintendent of Streets, would be going to the next Charter meeting to address this issue. Mr. Schumacher paraphrased some of the items included in the 1995 recommended budget based on the new request sheet. Two new fully equipped squads would be purchased in 1995 at a purchase price of $35,010.00. Chief Pecchia stated that the price of a 1995 squad has increased $2,000 over the price of a 1994 squad and that there are no 1994's left to purchase at the lower cost. Mayor Reinert asked if the City could go with a different make to save on cost. Chief Pecchia stated that the Ford products suspension was sub- standard to the Chevrolet product and that he preferred the Chevrolet product. He also thought that Hennepin Co. was going to re -bid. Mayor Reinert asked Chief Pecchia what his feelings were about hiring one patrol officer in March of 1995. Chief Pecchia stressed that for officer safety reasons and to achieve 24 hour coverage with two officers on duty, the City would need to hire three officers in 1995. Currently, there is only one patrol officer on duty after 3 A.M. Chief Pecchia stated that he understood the budget shortfalls for 1995 and stated that instead of one officer hired in March, he would prefer two officers to be hired, one in June and one in September. Mayor Reinert stressed that by hiring two officers on different dates in 1995, that in 1996, there would be a full years cost for these two officers. Mayor Reinert also stressed that to survive, the City needs more revenues to help pay for these added costs and that for budget year 1996, he would like to see Chief Pecchia work on bringing the Centerville contract back to the City of Lino Lakes. Page 2 251 J . 0 w Chief Pecchia also informed the City Council that he was moving toward a more community policing orientated Police Department. Ms. Kuether was concerned that with revenues down, should the city get so heavily involved with community policing. Mayor Reinert asked each council member to state what they would like to see in the 1995 budget. Mr. Neal is in favor of purchasing a copier and two new squads for the Police department. He would also recommend hiring two police officers at different dates, hiring a part time Community Service Officer and a part time secretary for the Police department. To increase revenues, Mr. Neal requested Chief Pecchia to look into aquiring contracts with Hugo, Centerville, and Columbus Township. Mr. Bergeson would like the city to eventually move toward 24 hour coverage with two officers on duty at all times. He stated that he felt the city was not able to do this all at one time. He would like to see 2 officers starting later in the year, sometime around September. He stressed that by hiring two new officers that the city is already committing for 1996. Mr. Bergeson questioned the increase in Economic Development. Ms. Vaske stated that Mr. Wessel had originally budgeted a full time salary for the Coordinator at a higher salary than the City's pay equity plan would allow. The proposed amount was reduced to reflect an increase in salary more in line with the pay equity plan. Mr. Bergeson also asked that if by adding another election precinct, would this have a significant cost increase. Mr. Schumacher stated that the cost increase would not be significant. Mr. Bergeson also questioned whether or not the part time office staff for the Park building was a luxury item or if it was really needed. Mr. Schumacher stated that due to the amount of traffic they get at that building with recreation registrations and phone calls and a number of other duties, that yes, this part time position is needed. Mr. Bergeson stated that his only recommended change would be hiring two police officers instead of the recommended one officer. Ms. Elliot stated that her recommendation for the 1995 budget was the same as Mr. Bergesons' recommendation, hire two new officers. Ms. Kuether stated that her recommendation for the 1995 budget was also the same as Mr. Bergesons' recommendation, hire two new officers. Mayor Reinert would like to see the $100,000 levy increase cut by $50,000 and to have the $50,000 come from the reserves to help finance the 1995 budget. Page 3 1 1 1 1 1 25 Mayor Reinert stated it didn't matter to him if Chief Pecchia hired one or two officers next year, just so long as Chief Pecchia could make the budgeted numbers work. For example, instead of hiring one officer in March at a cost of $32,196.00, hire two at different times of the year with the same $32,196.00. Ms. Kuether agreed with Mayor Reinerts' comments. Mayor Reinert suggested to Ms. Vaske that for the public hearing on December 1, he would like clear and understandable graphs, a comparison of taxes with other entities, for example, the school district, Anoka County, and the other districts. He would also like to show the city increase in relationship to inflation. Mr. Bergeson commented on all the computer requests. He wondered if all the individual departments were doing their own thing or was there some sort of coordination between them. Mr. Schumacher stated that the Technology Committee determines the needs and coordinates these needs between each department. These minutes were considered, corrected and approved at a regular Council meeting held on Monday, December 12, 1994. it Marilyn G. Anderson, Clerk -Treasurer Page 4 Vernon F. Reinert, Mayor _ 5dity of Lino Lakes 1995 Budget - New Requests Economic Development Elections Engineering/Planning Engineering/Planning Engineering/Planning Engineering/Planning Engineering/Planning Fleet Fleet Fleet Government Buildings Govemment Buildings Government Buildings Government Buildings Government Buildings Government Buildings Mayor and Council Parks Parks Parks Parks Full time Community Development Coordinator (3) Voting Booths Calcomp Pen Plotter D Size Digital Computer Modem Drafting Chair (2) File Cabinets Comp Plan Drum & Rotor Lathe Computer (replace the present 286) One Half Ton 4X4 Pickup Fence Operations Storage Area City Hall Office Lighting Replacement Fuel Tank Removal Fuel Tank Replacement ADA Facilities Upgrades Overhead Doors - Storage Building Recording Secretary Line striper Supplies-Turf,Seed Realign trails on South side of the underpass Part Time Office Staff Police Copier Police Computer, Lap Top, Software Police Two Part Time CSO Police Patrol Officer (January 1) Police Patrol Officer (March 1) Police Patrol Officer (March 1) Police Patrol Officer (May 1) Police Patrol Officer (May 1) Police Patrol Officer (September Police Part Time Clerical Salary Police Two New Squad Cars w/ Equipment 1) Package Recreation Recreation Streets Streets Streets Streets Streets Playground Program Warminghouse Staff General Maintenance (January 1) General Maintenance (January 1) General Maintenance (March 1) General Maintenance (June 1) Single Axle Dump Truck,Plow,Wing GRAND TOTAL GENERAL FUND Water & Sewer Operating Water & Sewer Operating 10 -Nov -94 General Maintenance (March 1) 1 Ton Pickup Employee Recognition ($10,000) Requested 14,139 675 3,500 250 600 750 24,000 5,938 3,728 18,447 16,800 8,000 20,000 60,000 30,000 9,500 4,200 1,500 4,735 5,100 6,720 6,800 6,605 16,559 39,352 0 0 25,909 25,909 13,215 3,253 35,010 2,623 2,000 32,149 32,149 0 0 71,290 551,405 0 0 Recommended 8, 50 67 0 0 375 375 12,000 0 0 0 0 0 0 0 7,500 0 0 Certificates 3,337 0 9, 731 Certificates 0 0 0 32,196 0 0 0 0 0 Certificates 0 26,791 0 Certificates 106,110 26,791 30,000