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HomeMy WebLinkAbout11/22/2005 Council Minutes• • • CITY COUNCIL WORK SESSION NOVEMBER 22, 2005 APPROVED 1 2 CITY OF LINO LAKES 3 MINUTES 4 5 6 7 DATE : November 22, 2005 8 TIME STARTED : 5:40 p.m. 9 TIME ENDED : 8:08 p.m. 10 MEMBERS PRESENT : Councilmember Carlson, Reinert, 11 Stoltz and Mayor Bergeson (5:43 p.m.) 12 MEMBERS ABSENT : Dahl 13 14 Staff members present: City Administrator, Gordon Heitke; Community Development 15 Director, Michael Grochala; City Engineer, Jim Studenski (part); Chief of Police, Dave 16 Pecchia; Finance Director, Al Rolek and Associate Planner, Paul Bengtson 17 18 19 ANNUAL APPOINTMENT UPDATE 20 21 City Administrator Heitke advised there is an update on the annual appointment vacancies 22 in the Council packets. Applications for those vacancies will be forwarded to the Council 23 at a later date. 24 25 DISCUSS SEPTEMBER 8, 2005 SPECIAL COUNCIL WORK SESSION 26 MINUTES 27 28 Councilmember Carlson referred to a recommendation from Councilmember Dahl 29 regarding a change to the September 8, 2005 Special Council Work Session. The 30 recommendation was for the following change on page 3, line 20: Councilmember Dahl 31 proposed an alternative budget plan that reached an agreement for approval. 32 33 Council directed staff to make copies of the recommended change and distribute to 34 Council. Action will be taken on the recommended change at the regular Council meeting 35 Monday, November 28, 2005, 6:30 p.m. 36 37 WOODS EDGE IMPROVEMENT PROJECT UPDATE 38 39 Mr. Bob Moberg, SEH, came forward and referred to a drawing of the sanitary sewer and 40 watermain layout for the Legacy at Woods Edge project. He reviewed the improvements 41 noting all of the utilities that were anticipated to be done by winter will be completed on 42 time. 43 44 Mr. Moberg referred to a drawing of the storm sewer layout pointing out the 45 modifications and adjustments to the plan. He stated that construction is ongoing and 46 work will continue into the winter. • • • CITY COUNCIL WORK SESSION NOVEMBER 22, 2005 APPROVED 1 2 Mr. Moberg advised he would be back for Council approval of advertising for bids on the 3 landscaping, streetscaping and lighting plan. Those plans will be presented at a future 4 Council work session. 5 6 REQUEST FOR RESOLUTION RELATED TO STADIUM FINANCING 7 8 Mayor Bergeson referred to a copy of a resolution the City of Centerville approved related 9 to the proposed stadium financing. He read a memo from the City Attorney that indicated 10 the adoption of the resolution is purely at the discretion of the City Council and is not 11 required by law. 12 13 Mr. Holch came forward and stated he would like the Council to be clear on this issue. 14 Due to a bill introduced in the state legislature, a referendum is required to approve an 15 increase in sales taxes. However, the stadium proposal is trying to work around that law 16 and establish an increase in sales tax without a referendum. 17 18 Mr. Holch stated the purpose of the resolution is for the City to take a stand and indicate 19 there should not be an increase in sales taxes without a referendum. 20 21 Mayor Bergeson stated he would like to hear Anoka County's position on this issue 22 before the City takes action on the resolution. Councilmember Stoltz and Councilmember 23 Reinert agreed. 24 25 Councilmember Carlson read a statement from Councilmember Dahl requesting the 26 resolution be placed on the regular Council agenda Monday night. Councilmember 27 Carlson indicated she supported that request. 28 29 Mayor Bergeson advised there are two Councilmembers that have requested the 30 resolution be placed on the regular Council agenda. He asked staff to contact Anoka 31 County to invite them to the meeting Monday night. 32 33 Mr. John Humenansky, 989 Lois Lane, came forward and stated the immediate impact of 34 adopting the resolution would be to let the County know the City is supportive of a 35 referendum. It is important to pass the resolution as soon as possible. 36 37 This item will appear on the regular Council agenda Monday, November 28, 2005, 6:30 38 p.m. 39 40 LOIS LANE UTILITY EXTENSION 41 42 City Engineer Studenski reviewed the project background noting the Lois Lane utility 43 extension would benefit 8 property owners. The current 8 lots have the ability to be split 44 into 17 lots once City sanitary sewer and water become available. The total proposed 45 project assessment is $395,762.50 as shown on the Preliminary Assessment Role. The 46 City covers the construction cost until it is paid off through the assessments. CITY COUNCIL WORK SESSION NOVEMBER 22, 2005 APPROVED • 1 2 City Engineer Studenski stated if the future lot assessments were to be deferred, the City 3 would have to carry a cost of $138,428.30 until the residents decide to subdivide their 4 lots. The lot subdivision would then start the assessments payoff process. He referred to 5 the Preliminary Assessment Roll that included Deferred Future Lots. 6 7 City Engineer Studenski advised 5 of the 8 property owners are in favor of the project. 8 Due to the current balances and projected expenditures of the City Trunk Fund, staff does 9 not recommend the deferral of any assessments at this time. 10 11 Council directed staffto move forward with authorization of plans and specifications for 12 the Lois Lane utility extension allowing for deferred assessments. Council also stressed 13 the importance of putting a policy in place for future projects in terms of deferred 14 assessments and project petitions. 15 16 FIVE YEAR FINANCIAL PLAN 17 18 Finance Director Rolek referred to the first draft of the 2006-2010 Five Year Financial 19 Plan. The plan was developed with the underlying values of meeting the City's obligations 20 to the citizens of Lino Lakes, maintaining service levels, and holding the line on costs and 21 taxes in a growth environment. 22 23 Finance Director Rolek advised the draft plan anticipates an overall increase in 24 expenditures of 53.42% for the 5 -year period. Anticipated growth in the tax base was 25 estimated at 10% per year. This includes both inflationary growth and new construction, 26 but does not include any unapproved developments, i.e. Hardwood Creek. This was a 27 conservative estimate as actual growth has been averaging about 12-17% over the last 28 several years. The net result is an overall growth in tax base of 66%. Given this rate of 29 growth in the tax base, the city tax rate in the plan is scheduled to be reduced from 30 42.223% in 2005 to 41.393% in 2010. 31 32 Finance Director Rolek stated a general inflation factor of 3% per year was used 33 throughout the plan. A number of areas, such as energy, fuels, insurance, etc., were 34 increased at a greater rate due to market conditions. The primary drivers for increases 35 within the draft plan are staff additions, pavement management, capital equipment 36 replacement planning, and energy costs. Anticipated staffing needs of 22 employees, 37 related benefits and other personnel costs, were included from 2006 — 2010. The Fire 38 Protection budget anticipated increases of 5% per year in response to City Growth. The 39 completion of the transaction from certificate of indebtedness financing to current 40 financing of equipment replacement, eliminating future interest expense, is an integral part 41 of the plan. Planning for long-term capital outlay was continued throughout the term of 42 the plan. Water and sewer operating funds have not been included at this time, but will be 43 included in the future for discussion. • 44 .4 CITY COUNCIL WORK SESSION NOVEMBER 22, 2005 APPROVED • 1 Finance Director Rolek advised staff is still seeking direction from the Council in its vision 2 for the future of the City and how it will be managed financially. It must be recognized 3 and reiterated that this is a financial plan, not a budget, and it does not constitute 4 authorization for future expenditures. The City budget will continue to be prepared 5 annually, and current needs will continue to be presented to Council on an annual basis. 6 While it is Council's, and staff's intention to be fiscally responsible, it is possible the future 7 budgetary needs may be greater than is outlined in the plan, resulting in a tax rate higher 8 than anticipated in the plan. Likewise, the plan will be updated each year and needs 9 reassessed at the time of renewal. 10 11 Finance Director Rolek noted a public hearing would be held on the final draft of the plan 12 prior to approval by the City Council. 13 14 DONATED LEAVE POLICY 15 16 City Administrator Heitke stated the proposed Donated Leave Policy was discussed at the 17 last Council work session. There was a general consensus from the Council to move 18 forward with the policy. 19 20 City Administrator Heitke reviewed the changes to the draft in terms of the types of 21 accrued leave that can be donated and the transfer of leaving being based on hours or pay. 22 23 Finance Director Rolek advised the worst-case scenario for an average salaried employee 24 would result in approximately a $14,000 dollar cost to the City. 25 26 The Council directed staff to place Donated Leave Policy on the regular Council agenda 27 Monday, December 12, 2005 for Council action. 28 29 REGULAR AGENDA ITEMS 30 31 There were no changes to the regular agenda. 32 33 The meeting was adjourned at 8:08 p.m. 34 35 These minutes were considered, corrected and approved at the regular Council meeting held on 36 December 12, 2005. 37 38 39 40 I ell, City lerk John ''rgeson, Mayor 41 42 43 Transcribed by: •44 Kim Points 45 TimeSaver Off Site Secretarial, Inc.