HomeMy WebLinkAbout08/21/2006 Council Minutes•
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CITY COUNCIL WORK SESSION
APPROVED
DATE
TIME STARTED
TIME ENDED
MEMBERS PRESENT
MEMBERS ABSENT
CITY OF LINO LAKES
MINUTES
AUGUST 21, 2006
: August 21, 2006
. 5:38 p.m.
. 9:53 p.m.
: Councilmember Carlson, O'Donnell,
Reinert, Stoltz and Mayor Bergeson
: None
Staff members present: City Administrator, Gordon Heitke; Finance Director, Al Rolek;
Community Development Director, Mike Grochala; Director of Administration, Dan
Tesch; Public Services Director, Rick DeGardner; Chief of Police, Dave Pecchia; and
City Clerk, Julie Bartell (part)
POSSIBLE REZONING OF PARCEL WITHIN MILLERS CROSSROADS
COMMERCIAL SITE
Community Development Director Grochala stated during the recent discussion of
Millers Crossroads commercial site development it became apparent that the existing
zoning classification of the above referenced parcel as LB, Limited Business is
inconsistent with the Council's intent when it rezoned the property in September 2003.
Community Development Director Grochala stated that it appears that the rezoning
approval was an error on the City's part, which suggests additional evaluation of the
appropriate zoning classification for the parcel.
Council directed staff to initiate consideration of rezoning the parcel from LB, Limited
Business to NB, Neighborhood Business District.
2007 BUDGET
City Administrator Heitke stated this evening is the first budget work session. There is
another budget work session scheduled on September 6, which is combined with a regular
Council work session. He advised the preliminary budget has to be approved by
September 11, 2006.
City Administrator Heitke indicated staff would like a clear direction this evening to
complete the 2007 budget. City Directors are here to answer specific questions relating to
the proposed budget. Staff also needs direction regarding outside funding requests.
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CITY COUNCIL WORK SESSION AUGUST 21, 2006
APPROVED
1 Finance Director Rolek stated he would outline the high points of each department as
2 well as revenue areas that have been adjusted. He stated he would also discuss the levy
3 impact and the levy as a whole.
4
5 Finance Director Rolek advised staffs' goal in preparing the budget were to maintain
6 current service levels to citizens, ensure each department has adequate resources to
7 perform their functions, provide resources for maintaining local streets and storm
8 drainage, provide for the replacement of work equipment, update the Comprehensive Plan
9 and City Vision and provide a small contingency for unforeseen circumstances that may
10 arise throughout the year, while maintaining a level tax rate. It is incumbent upon staff to
11 present a budget that represents the needs of the community and is fiscally responsible to
12 the taxpayers.
13
14 Finance Director Rolek advised the state is scheduled to resume funding of the Market
15 Value Homestead Credit (MVHC) in 2007. The estimated MVHC for next year is
16 $330,000 and has been included as a revenue source in the budget. The City must
17 remember that this credit was suspended in 2003 and again in 2005. While the state
18 continued to offer a credit on property tax bills during this period, the amount of which is
19 deducted directly from the City's certified levy, the amount was not paid back to the City
20 through the MVHC program. It is conceivable that if the state's budget again suffers a hit
21 in the current biennium that this aid could be suspended a third time. However, staff is
22 optimistic that this will not occur. In the unlikely event that this does happen staff will
23 develop a list of strategies to avoid potential fiscal problems that may result.
24
25 Finance Director Rolek stated several factors were considered and included in the
26 proposed budget. The Council set several goals during its goal setting session in May of
27 this year. Resources are provided in the proposed budget to work toward accomplishing
28 these goals, which the Council felt represented the greatest needs of the community.
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30 Finance Director Rolek stated two new staff positions are included in the proposed
31 budget. A police captain is added to increase supervision of a larger complement of
32 officers as well as maintaining administrative functions. Greater need for street
33 maintenance and environmental issues has made it necessary to add a general
34 maintenance person in the public services area.
35
36 Finance Director Rolek advised the budget proposed for 2007 continues the capital
37 equipment replacement program and continues the phase out of the use of certificates of
38 indebtedness. The proposed budget also includes resources to fully implement the
39 maintenance portion of the adopted Pavement Management Plan in 2007. New federal
40 regulations, including NPDES and the clean water act, have made it necessary to include
41 a minimum of $100,000 for maintenance of the City's storm water drainage system.
42 Finance Director Rolek stated the Council awarded contracts for updating the
43 Comprehensive Plan and for a visioning process. Portions of the costs for those projects
44 have already been budgeted, but further significant amounts will be required to complete
45 these processes. Tax abatements have been included in the budget and levy for Target
CITY COUNCIL WORK SESSION AUGUST 21, 2006
APPROVED
• 1 and Kohl's. Since the City's commitment has been paid faster than expected, the final
2 year abatement in 2008 should be significantly less than in prior years.
3
4 Finance Director Rolek referred to the 2007 Budget Preparation Calendar noting the
5 Council will approve a proposed 2007 Budget and Tax Levy and set the Truth in Taxation
6 hearing dates on September 11, 2006.
7
8 Finance Director Rolek advised the budget as proposed for 2007 is $9,948,113, a
9 $1,340,887 (15.58%) increase from the amended budget for 2006. The City's tax base
10 over the last year grew by 11.37%. About 3.00% of the increase is from new
11 construction, and 8.37% is from market adjustments. The City's total levy is proposed to
12 increase by 11.08%. This percentage includes the MVHC from the state. The tax rate is
13 estimated to go from 41.362% to approximately 41.880% (This is an estimate based upon
14 a number of factors that were also estimated. Adequate information is not available at this
15 time to calculate a more accurate figure). Because much of the tax base increase is
16 market-driven, it is expected that the City portion of a property tax bill will increase
17 between 5 — 11%. Much of the increase pertains to needed capital outlay and to goal -
18 orientated expenditures. While the proposed budget results in a property tax increase,
19 staff feels the budget presented fulfills most needs of the community and is fiscally
20 responsible to the taxpayers.
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22 The Council had the following suggestions regarding the proposed budget:
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24 1. Put a contingency plan in place if MVHC funds are not resumed in 2007.
25 2. Obtain information regarding out sourcing tree trimming.
26 3. Obtain information regarding the increase of fees for contracting police
27 officers.
28 4. Add an agenda item for the Fire Steering Committee Meeting regarding the
29 cost of contracted services.
30 5. The possibility of adding an additional $100,000 to the contracted Storm
31 Water Management Fund.
32
33 The Council also directed staff to amend the proposed budget reducing the General Fund
34 Levy by $100,000 to keep the tax rate the same as 2006. Staff will then prioritize cuts
35 from the amended budget in amounts of $200,000 and $300,000. Those draft budgets
36 will be presented to the Council at the next budget meeting.
37
38 The Council advised each Council Member would prioritize their cuts from the budget in
39 various amounts as well. Those cuts will also be presented at the next budget meeting.
40
41 The Council requested copies of the meeting minutes from the last Financial Retreat.
42 An additional budget meeting was scheduled for Monday, August 25, 2006 after the
43 regular City Council meeting.
44
• 45 The meeting was adjourned at 9:53 p.m.
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CITY COUNCIL WORK SESSION
APPROVED
AUGUST 21, 2006
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2 These minutes were considered, corrected and approved at the regular Council meeting held on
3 September 11, 2006.
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12 Transcribed by:
13 Kim Points
14 TimeSaver Off Site Secretarial, Inc.
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