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HomeMy WebLinkAbout08/24/1999 Council Minutes• • COUNCIL BUDGET SESSION AUGUST 24,1999 DATE TIME STARTED TIME ENDED MEMBERS PRESENT MEMBERS ABSENT CITY OF LINO LAKES MINUTES August 24, 1999 10:15 a.m. 3:03 p.m. • Council Members Bergeson, Dahl, Lyden (left meeting at approximately 1:20 p.m.) and Mayor Sullivan Council Member Neal • Staff members present: City Administrator, Linda Waite Smith; Administration Director, Dan Tesch; Public Services Director, Rick DeGardner; Community Development Director, Brian Wessel; City Engineer, John Powell; Police Department, Sergeant Kent Strege; Police Department Office Manager, Renee Kaulfuss; Recreation Superintendent, Barry Bernstein; Public Works Superintendent, Tom DeWolfe; Parks Le. • Person, Mike Hoffman; Utility Lead Person, Tim Hillesheim; City Clerk in waitin. ;el Gaustad and Clerk -Treasurer Marilyn Anderson. FRAMEWORK FOR DEVELOPING BUDGET, I r I TH Ms. Waite Smith thanked Ms. Paula Schl preliminary 2000 General Fund Bud Ms. Waite Smith presente revenue projections an balance the budg would equate to Revenue Projecti un for helping her prepare the for preparing the budget including how the e projections were prepared and the method used to tha e proposed 2000 General Fund balanced budget of the 1999 General Fund Budget tax capacity rate by .154%. The State Legislature has extended levy limits for another year and has informed the City of the maximum amount of revenue that can be collected in taxes. The former City Financial Analyst recommended that the City commit $250,000 of the 1998 Excess Revenue for payment of an expected TIF penalty in the year 2000. The money was put in the General Fund and staff is recommending that the $250,000 in the General Fund be reallocated to pay for General Fund expenditures in the year 2000 and that the TIF penalty be provided for outside the General Fund levy. Staff is assuming that the building permit revenues will decrease to 1998 pre -storm levels, is recommending a three (3) year schedule of utility rates be prepared before the end of this year and has not factored in potential revenues from additional gas franchises. PAGE 1 COUNCIL BUDGET SESSION AUGUST 24,1999 Council Member Lyden commented that he did not feel the need to review all of the budget requests as long as the budget was within constraints. Expenditure Proposals Street Department, Rick DeGardner Salaries - No additional personnel, salaries are based on the union contract. Supplies - Increase is due to grading and laying gravel on Pine Street (This is a boundary street that is maintained by both the City of Lino Lakes and Columbus Township). Auto Insurance - Although there will not be any additions to the fleet, auto insurance rates have increased substantially. Capital Outlay - Street sweeper, set aside ($60,000 as 1/2 payment on street sweeper, balance to be funded in 2001), blacktop roller and trailer (staff is proposing that these items be purchased with Certificates of Indebtedness). Staff suggested that Council may want to consider funding on street sweeper from the Surface Water Management Fund either be sold or placed on the Hennepin County auc street sweeper noting that it is an important pie t of the eper will fined uses for the nt ce equipment. Staff considered leasing a street swe c ' g some street maintenance and repair projects. After careful co f i `` ecommending that the City continue the same program of stree d r pair. Leasing would be more expensive than purchasing and if racts services, the City would have to wait until the contractor is av ' e t • e k. Fleet, Rick DeG Salaries - No additional personnel, salaries based on union contract Overtime Salaries - Staff is proposing a substantial increase in overtime salaries for the mechanic rather than hire a second mechanic. Professional Services - Cover cost of sending transmissions and other specialized repair Services out to professional mechanics. The vehicle fleet is aging requiring additional service. Capital Outlay - Freestanding hoist for the shop. Staff has considered contracting mechanical services. Research has indicated that it would not be in the best interest of the City. PAGE 2 • • COUNCIL BUDGET SESSION AUGUST 24,1999 • Government Buildings, Rick DeGardner • Salaries - This is a new budget item. The City recently hired a building maintenance technician to maintain the buildings at the new civic complex. Maintenance Supplies - The substantial increase is due to the addition of the civic complex buildings. Small Tools - Certain tools are needed to maintain the new buildings. The maintenance technician has been supplying his own tools. Staff is proposing that the City supply the tools needed in the performance of this position. Contracted Services - Janitorial service for the Public Works/Senior building and the Fire Station. Remodeling and repair of the Public Works/Senior building Capital Outlay - A new repeater system for the two-way radios is needed for better communications with vehicles and personnel in the field. Items such as maintenance supplies, professional services, telephones, insurance, utilities has increased because of the new civic complex. The large increase in tel hone service includes maintenance of the new system. Council discussed whether the Public Works/Senior Cent b w h remodeling and repairing. Staff noted that permanent •ra, r n at this building. Since the building does not have a sprinklings .' ; '; on hese documents will be compromised. Staff was directed to loo . at tion or building. Parks Department, Rick DeG Salaries and Overtime - additional personnel, salaries based on union c tract and City Pay plan. Temporary Empl - porary employees include personnel for various epartments including civic complex maintenance, Environmental Department, parks and trails. This includes an increase so that the City can compete for quality personnel. Maintenance Supplies - This items includes materials needed for maintenance of the parks and trails as well as trees and shrubs for boulevards and parks. Staff noted that boulevard trees in new subdivisions are funded by the developer. Small Tools - Staff is proposing to purchase basic tools to be located in each maintenance vehicle of the full-time personnel to eliminate the need to run back to the shop for tools. Staff indicated a tracking system is in place. Capital Outlay - Pickup Truck and plow, rake attachments for skidster or tractor, utility trailer and mower. Staff noted that new bleachers that meet all safety guidelines are on order and will be in • place before spring activities begin. PAGE 3 COUNCIL BUDGET SESSION AUGUST 24,1999 Anoka County will not be constructing any new trails in the Regional Park this year. This will delay the plan to install the new trail on Mallard Lane into the Regional Park. In addition, the City has been informed that the DNR grant that would have helped fund the Mallard Lane trail cannot be used for that,purpose. Council discussed the need to review the funding for the Mallard Lane trail. Council also directed staff to prepare a timeline for the trail and let residents in that area know what is happening. Council Member Lyden asked that Council discuss the entire trail funding system. He is interested in dedicating additional funding for trails. He also indicated that he would agree to keep the tax capacity rate at the same level as last yearif the Council agreed to dedicate the additional dollars to trail funding. Staff indicated that the State Legislature has set the maximum amount of levy for the City and the City cannot exceed that amount. Staff could shift some purchases to the Certificates of Indebtedness and place a similar amount in trail funding in the budget. However, the amount of dollars affected by this process would be less than $15,000. Council decided that this amount wnsignificant and agreed to leave the budget as presented by staff. Staff discussed a plan to reduce large ticket expenditures f it suggested that when a new finance director is on board, staff pr : e .1. R to the vehicle replacement plan used by the Centennial Fire o =�' oli:� epartment. Recreation, Rick DeGardner Salaries - No additional pe o fob' temporary personnel increased to compete with other e as cDonalds. There are no oth. ' i . t increases in this budget except for insurance coverage. The Council took ive (5) minute break. Sewer Utility Department, Rick DeGardner The Sewer Department is an enterprise of the City and not covered in the General Fund Budget. However, the City is required to prepare a budget for its operation. The budget was prepared to reflect the actual costs of performing the service for the users of the system. Salaries - No added personnel. Salaries are based on the union contract. A 50 cent an hour increase was added to seasonal salaries. Again, this was done to compete with other employers such as McDonalds. Maintenance Supplies - This increase reflects the growing usage of the sewer system. Contracted Services - The City is continuing to retrofit older manholes. PAGE 4 COUNCIL BUDGET SESSION AUGUST 24,1999 • Capital Outlay - Sewer Vac Jetter for unclogging sewers. Purchase of this piece of equipment will reduce contracted services in the future. • • Water Department, Rick DeGardner Salaries - No additional personnel. Salaries are based on the union contract. Temporary Salaries - A 50 cents per hour increase was added to this item. Maintenance Supplies - This area funds new water hydrants as well as other items. Chemicals - Increase water supply requires increase use of chemicals. Professional Services - This items includes water testing to meet requirements of the State. Contracted Services - Contractor replacing water meters with meter interface units (MIV' S). Capital Outlay - Meters - City purchases water meters and sells them to builders so that all water meters will be uniform. Equipment - Water meter reading software. Council discussed adding another water tower to the water system. ained that another tower is not needed for several years. Internet - Rick DeGardner One reason the City "piggy backed" onto s e t S of District telephone system was for access to the Internet. Proble c: Internet service was requested. The end result is that Internet s i lay 'e through the Centennial School District. If the City dete se ice is desired, the cost would be approximately $10,00aff recommended that the City wait until it is financially sensi Administration - sch Salaries - New position, Administrative Assistant - Increases to present staff salary is according to the Pay Plan except for the Video Tech and the Senior Coordinator. Both positions will require an adjustment upward. Dental Insurance - Staff noted that this is a new item for all departments. Capital Outlay - Copier. The current copier is getting old and cannot handle the increase usage. Mayor and Council - Dan Tesch Salaries - Based on resolution passed by the Council in 1997. Insurance - This is the Errors and Omissions insurance. Council directed staff to determine if this increase is due to the insurance claim that was filed after the previous City Administrator left the City. The City's insurance agent has asked if the City wants to double the Umbrella insurance to PAGE 5 COUNCIL BUDGET SESSION AUGUST 24,1999 $2,000,000. Staff was asked to determine what other cities are doing in the area of the Umbrella insurance. Council asked if support staff is adequately trained. Ms. Waite Smith will have each Director prepare an explanation of how training and tuition dollars are spent. Elections - Dan Tesch Salaries - Additional Election Judges are being added due to the increase in the voter population. Salaries are proposed to be increased 50 cents per hour to help attract more Election Judges. Office Supplies - This item is decreased because the State and County will help fund the purchase of ballots and provide most of the advertising since it's a national election year. Capital Outlay - Acu-Vote computer. The 1998 excess General Fund rev ue funded approximately $24,000 of the cost to replace the A - • . • mputers. Another $5,100 is needed to complete the re e An `° er $2,500 has been budgeted to purchase another 1 There will be a primary and a general election0 Cable TV - Dan Tesch Salaries - Unknown The current vide ► • era goi o work for KSTP. Staff will be making recommendation , _ is sition. Charter Commis ~'i n - Dan Tesch Mr. Paul Montain, Charter Commission Chairman proposed this budget. He indicated that there may be some revisions to the Charter in 2000 and requested $5,000 to cover professional services and other items to facilitate the revisions. Senior Program - Dan Tesch Salaries - No additional personnel. Staff is recommending an adjustment in salary for the Senior Coordinator as indicated in the Pay Plan. Telephone - This item has not been budgeted in the past. The use of a cellular telephone is proposed. Capital Outlay - $500 is budgeted to replace some tables. PAGE 6 • • COUNCIL BUDGET SESSION AUGUST 24,1999 Finance Department - Dan Tesch Salaries - No additional personnel. Several changes are proposed. The first change is to reinstate the position of Finance Director and eliminate the Financial Analyst position. The second change is to increase the Accountant position from half- time to three quarter time. Other Consultants - CMS Tuition - The City is financing tuition to a Community College for a Finance Department employee to enhance computer skills. Contracted Services — Anoka County Assessor Capital Outlay - Epson Printer, file cabinets, calculators, computer for Administrative Assistant. Council discussed funding college or technical school tuition for some employees. The concern is that once the person finishes their training they could go to a higher paying position in another city. Staff noted that some cities do have specific policies and/or contracts that tie the person to the job for a specific period of time. Economic Development Department - Brian Wessel The Economic Development Department sets long -t (u al i ) year) community development goals. Staff has diagr or t years through 2003. These goals were outlined. Salaries - No additional person leaving two (2) Economic_D will be Professional Se Contracted Servi Capital Outlay - puter mcl e" ietary position will be eliminated e unity Development Director and the ssistant. The Planning Coordinator job description e some clerical duties. aration of some promotional items, etc. ices include appraisals, legal consultants, etc. Staff is considering creating the position of GIS Computer Tech in the 2001 budget. Engineering - Brian Wessel This budget consists entirely of the Engineering Consultant Contract. Official action on this matter should be completed soon. Staff discussed the long-term plan for engineering services noting that this matter should be re-evaluated annually. Currently, engineering needs are very large and it appears contracting those services is the prudent route. Even when it is in the best interest of the City to hire a City Engineer, the City still will need consultants. Planning and Zoning Department - Brian Wessel PAGE 7 COUNCIL BUDGET SESSION AUGUST 24,1999 Salaries - No added personnel. Salary increases are based on the Pay Plan. Planning Consultant - This item reflects the need for consulting services to prepare the new Zoning Ordinance, new Comprehensive Plan and new Sign Ordinance Contracted Services - Council noted the need to train new board members in parliamentary procedures, planning procedures and provide other fundamental information. Environmental Services - Brian Wessel Salaries - No additional personnel. Salary increase based on Pay Plan. Contracted Services - This item has been reduced because the Environmental Inventory Plan has been completed. Capital Outlay - Trees for Civic Complex. Forestry Department - Brian Wessel Salaries - No additional personnel - Salary increases base Capital Outlay - Trees Solid Waste Department - Brian Wesse Salaries - No additional person ased on Pay Plan. Contracted Services - Coves . 's " tw s (2) annual City Cleanup days, for tivities and recycling oil. Council discusse os the oil -recycling program. It was suggested that a sign with the addresses of o ecycling facilities be posted next to the Lino Lakes facility. Council noted that there is approximately $200,000 in the revenue budget under administrative charges and asked if the City was billing all the staff time spent on specific projects. Staff explained that escrow funds are established for all projects where it is appropriate to bill expenses to the landowner or developer. All staff is reminded of this important procedure. Council Member Bergeson asked that the line item under Personnel Services title "health club" be changes to "wellness program" or another such title. Department of Public Safety Goals - Sergeant Kent Strege Sergeant Strege presented the 2000 Public Safety Department Goals and outlined budgets for each area of the Department. PAGE 8 • COUNCIL BUDGET SESSION AUGUST 24,1999 Building Inspections Department Sergeant Strege Salaries - No new personnel. The Department will assume the full-time salary and benefits for the clerical position. This position will no longer be shared with the Community Development/Engineering Departments. Salary increases based on the Pay Plan. Contracted Services - Electrical Inspections Contract. Capital Outlay - None. The pickup truck will be replaced with a refurbished squad car. The Public Safety Director has planned a time and task Analysis for the Building/Engineering Secretary. Permit revenues fund this department. Police Department - Sergeant Strege Salaries - No new personnel. Salary increase based on union contract and 'ay Plan. Promotion of officer to sergeant position. (Current there . ) officers rotating in this position). Contracted Services - Increase due to the Anoka County ch is just now coming on-line. Capital Outlay - Laptop computer, network int pla one laptop computer, work -station for additional S for mount, VCR, EOC, three (3) ProCop seats, three + p, emergency light, switch/siren box. radar unit, tw • a nes, one report writing workstation. Vehicle Plan - Will be reds i'�- y o ( squad cars. Council asked Strege explain transporting pri duties clarified. a the ng is in the new Police Department building. Sergeant d ready been used. Council asked about the problem in so geant Strege explained that the system is being refined and C ently, the Lino Lakes transport cars are staffed by reserve officers. Truth in Taxation Public Hearing The hearing was set for Monday, December 6, 1999, 6:30 p.m. Other Comments Council will set the maximum tax levy by resolution at the September 13, 1999 Council meeting. Mayor Sullivan expressed the need to make sure that each Director is comfortable with • their budget. She also asked that next year each Director prepare a list of training PAGE 9 COUNCIL BUDGET SESSION AUGUST 24, 1999 opportunities budgeted in each department. The list is to include a notation indicating whether the training is mandatory and/or reimbursable. Council Member Bergeson commented that the base 2000 General Fund Budget with no increase in staffing appears to be an increase of 7% over the 1999 General Fund Budget. Ms. Waite Smith explained that the 1999 General Fund Budget does not include the new Civic Center maintenance person and the two (2) grant COPS. The expected rate of growth is 4% to 4 1/2%. The 7% increase is skewed because of mid -year hires in 1999. Mayor Sullivan questioned the budgeted revenue from permits and licenses. Staff explained that building permit revenue is based on 150 new homes. Staff also noted that building permit fees should be reconsidered because the state has increased the fees. Mayor Sullivan asked that both expenditures and revenues be shown in a pie chart. Ms. Waite Smith indicated that information would be available for the Truth in Taxation public hearing. Council Member Bergeson asked that the Management Team Cuts f . inal Budget Requests presentation be used if the City does realize an exces e m the 1999 Budget and is able to fund additional requests. Council Member Bergeson asked staff to discu e 1 ng in all areas. Ms. Waite Smith explained that staff is current •ut s and written procedures and policies which is part of successi Council Member Bergeso population growth, th He asked that a explained that th maximum staff c een state mandates, levy limits and slowing ome point may have to make big cuts in the budget. this "' tuation be held in the near future. Ms. Waite Smith Staffing Plan is the worst case scenario in terms of Mayor Sullivan suggested that Council prepare a goal setting plan so if cuts are needed, the Council and staff know what is a priority in staffing. This discussion should be held shortly after the first of the year. Ms. Waite Smith explained that the Five Year Financial Plan is in process. It will be presented to Council before the first of the year. Staff is also preparing a recommendation for the Minnegasco franchise. This will be presented at the next work session. Council Member Dahl asked why the Charter Commission budget had been reduced. Staff explained that they had talked to Mr. Montain, Charter Commission Chairman, who suggested that the Commission historically has not spent its budget, but a total of $5,000 was an appropriate amount for the budget. PAGE 10 • • • COUNCIL BUDGET SESSION AUGUST 24,1999 Council Member Bergeson asked about the status of the recreation complex. Ms. Waite Smith explained that a site has been determined (Paul Montain property) and when the City is ready to purchase the property, Council will be asked to formally take action. The purchase will be funded by a loan from the Area and Unit Fund. This Fund will be repaid after a referendum has been held and the voters approve development of an athletic complex. Staff explained that the City Engineer is preparing a street and utilities impact study for the area. Mr. Bernstein is discussing the proposed recreation complex with local service organizations. Hopefully, they will determine that it is important and will financially support the plan. An article will appear in the next City newsletter outlining the recreation complex acquisition process. The Charter Commission is also looking at a referendum that would cover several years of road reconstruction projects. Staff noted that all of these plans would take time. Staff also h.> ; • lans might also become a political issue during the political campai Mayor Sullivan asked that a fact sheet or list b ote recreation complex and the street reconstruction referendum. a ted tit portant that the citizens know that these projects will be a ci ' s n • Council decision. Mayor Sullivan noted that in the Comprehensive complex, other sh Mr. Wessel expl consideration. e y is proposed as neighborhood commercial the property is purchased for a recreational e c idered for neighborhood commercial development aff is looking at this and will present an analysis for Council Mr. DeGardner commented that if the recreational complex is no longer "on the table", Council will need to determine the location of additional athletic facilities. Council determined that the proposed tax rate is satisfactory and the general scope of the proposed 2000 General Fund budget is reasonable. Council asked if there were any open union contracts. Staff explained that there is, however, a 3% increase appears to be the standard salary offer. This increase is already reflected in the salary budget. Council Member Bergeson asked if staff is comfortable that there were no large unfunded potential liabilities that have not been addressed in this budget? Staff felt comfortable with the budget. PAGE 11 COUNCIL BUDGET SESSION The meeting was adjourned at 3:03 p.m. These minutes were considered, corrected and approved at a regular Council meeting held on September 13, 1999. AUGUST 24,1999 - Marilyn G. 4nderson, Clerk -Treasurer Sept. 2, 1999 (4:39 p.m.) Sept. 7, 1999 (10:25 a.m.) Sept. 21, 1999 (12:10 p.m.) PAGE 12