HomeMy WebLinkAbout08-24-2015 Council Special Work Session MinutesCOUNCIL SPECIAL WORK SESSION August 24, 2015
APPROVED
CITY OF LINO LAKES
MINUTES
DATE : August 24, 2015
TIME STARTED : 8:10 p.m.
TIME ENDED : 9:45 p.m.
MEMBERS PRESENT : Council Member Stoesz, Kusterman,
Roeser, Rafferty and Mayor Reinert
MEMBERS ABSENT : none
Staff members present: City Administrator Jeff Karlson; Finance Director Sarah Cotton;
Community Development Director Michael Grochala; Public Safety Director John
Swenson; Public Services Director Rick DeGardner
2016 Budget Discussion -The council had received a budget in draft foul" and an analysis
sheet indicating budget gaps (updated from the last work session) for discussion.
The council reviewed the 2016 General Fund Budget/Gap Analysis Net Tax Capacity
Calculation. The mayor clarified that the fiscal disparities contribution received by the
city is included in the total net levy. Administrator Karlson explained that the fiscal
disparities figure is a projection. The mayor noted that the fiscal disparities figure
included in the budget pages is different than the figure on the tax capacity sheet.
Council Member Roeser added that he found information on-line that indicates that the
tax capacity value actually went up 4% rather than the 3% noted on that sheet.
Administrator Karlson responded that the figures included by staff were received directly
from Anoka County.
Administrator Karlson reviewed the General Fund Forecast Gap Analysis. He noted that
at the last session, the council identified $323,000 in debits within the 2015 budget. The
mayor recalled that the council also trimmed from the 2016 budget.
Regarding the Streets budget on Page D-75 of the budget handout, Director DeGardner
noted increases in maintenance supplies (for 35W interchange flower bed work), salt and
sand is estimated to be a little higher, and an additional seasonal person to improve
maintenance along county roads. Staff is also recommending an increase in 2016 in
contractual services in the area of additional hazardous tree removal and street patching.
The council also reviewed Page D93, the Street Maintenance budget which is being
raised in 2016 to $540,000 (including mill and overlay, sealcoating and some patching).
The council discussed lowering that to the 2015 amount; Community Development
Director Grochala suggested that it may better to move the trail maintenance line item
into this line (saving about $20,000).
Council Member Roeser noted that the $110,000 for the fire pension is a one-time cost so
it would make sense to move that from the closed bond fund. Public Safety Director
Swenson said the number is an estimate and he does expect it to come down. Council
Member Roeser also suggested that the council develop a policy about use of close bond
funds.
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COUNCIL SPECIAL WORK SESSION August 24, 2015
APPROVED
Council Member Rafferty asked about the Metro iNet budget. He is seeing an increase
but not understanding what it represents. Administrator Karlson reviewed the budget on
Page D-27 and passed out additional information received from Metro iNet. The city
contract is going up as indicated, however some of the items were also included in
department budgets (Laserfiche for example) resulting in a reduction of about $18,000 in
the Finance Department. He provided a memo to the council explaining that. Back to
the line items, they include core service charges increasing due to staff being added and
that is needed mainly because of the amount of equipment required for public safety
services. He stressed that the sharing of services and costs through the Metro iNet is a
real bargain for the city. The mayor suggested that the city should still investigate other
possibilities. Chief Swenson urged caution in looking at other options; other than
something like LOGIS, it would be difficult to provide the level of services needed,
including 24 hour services.
Council Member Roeser, looking back at the General Fund Gap Analysis, noted that the
levy for the street construction project is new and really stands alone. Because it is the
first year of that program, would a contribution to lessen the impact make sense? The
mayor noted that the people of Lino Lakes agreed, by ballot, to let the budget cover the
expense of the street reconstruction project and the traffic light improvements.
The council discussed the bond payments for the construction of the civic complex. The
last payment will be due on 2017. There was a general review of bond payment
schedules. Council Member Rafferty suggested that project names be attached to the
levy list.
Public Safety Director Swenson provided information on fire division related expenses
for 2016 including a contingency. Noting Page D-93, a fire contingency in the amount of
$125,500 has been added. Mayor Reinert explained that the budgeting is first time
around so either you plan high or plan realistically and add a contingency. Council
Member Stoesz suggested that the contingency be earmarked for public safety rather than
just fire. Administrator Karlson explained where the funds were taken from for that
contingency.
The council further discussed the Public Safety Department budget request. The mayor
reviewed increases to the budget over the period 2013 to requested 2016. Chief
Swenson clarified that the current information reflects a reduction from the request, to 27
sworn officers (an almost $250,000 reduction reflected in the gap). The mayor asked
for a breakdown of the increase in the budget proposed from 2015 to 2016.
Mayor Reinert clarified that the $323,000 was only expenditures and he believes there
were revenue changes identified also ($10,000 Engineering & Planning; Licenses $4,000;
Intergovernmental $19,000; Excess tax increment, $11,000; phones, $17,000).
Administrator Karlson explained the reductions included on the gap analysis that includes
some of those things. The mayor asked if there is more revenue to be gained from the
ACE program; Chief Swenson will check. The mayor would like the $323,000 included
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COUNCIL SPECIAL WORK SESSION August 24, 2015
APPROVED
in the next gap analysis. Administrator Karlson confirmed that the cost of the fire
pension contribution will be paid from closed bond funds.
The meeting was adjourned at 9:45 p.m.
These minutes were considered, corrected and approved at the regular Council meeting
held on September 28, 2015.
Juli Bartell, City lerk
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