HomeMy WebLinkAbout10-23-2015 Council Special Work Session MinutesCOUNCIL SPECIAL WORK SESSION October 23, 2015
APPROVED
CITY OF LINO LAKES
MINUTES
DATE : October 23, 2015
TIME STARTED : 7:15 p.m.
TIME ENDED : 8:05 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; City Clerk Julie Bartell
2016 Budget Discussion- Administrator Karlson reviewed action items accepted by the
council previously that reduce the amount that would be taken from the Closed Bond
Fund. He added that $658,918 is the current gap. From that amount he suggested that
staff could remove the seasonal mechanic position from the budget and explained that a
maintenance worker is currently assisting with those duties so the cost of duties could be
shifted, saving $25,000. Also, with fuel prices significantly down, a budget reduction of
$20,000 for that line item is acceptable to staff.
Mayor Reinert remarked that there were two contingency reductions that are not both
listed here and that represents an additional $50,000. Administrator Karlson noted that
Director Swenson will be asking the council to review additional information on the Fire
Department contingency.
Public Safety Director Swenson distributed a document from October 24, 2015 outlining
the Fire Department contingency. He has also reviewed the audio from the council
discussion at that time. The basis of the $125,000 contingency is a best estimate by staff
and without real flexibility. The mayor suggested that there is probably some over-
estimation within that budget and that is why he feels there could be some dollars to take
from there. Chief Swenson further explained that items included in the contingency are
budget needs but they are basically not reoccurring and were moved to contingency at the
direction of the council and were no longer listed within the department budget.
Mayor Reinert discussed the Office Equipment Fund. The fund balance is $250,000
with a $25,000 annual appropriation. If that fund balance is too high, he suggests
reducing the balance as well as the appropriation. Administrator Karlson remarked that
he would prefer that the council review an inventory of needs for that fund before
reductions occur; there are real needs for those funds now and in the immediate future.
The mayor suggested an annual appropriation change to $15,000 and a reduction in the
fund balance of $100,000; the council concurred.
Administrator Karlson remarked that the iPads that council members use to view meeting
materials will be replaced soon and he wonders if there is a preference for change.
Council Member Stoesz suggested that users should be allowed more flexibility in getting
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COUNCIL SPECIAL WORK SESSION October 23, 2015
APPROVED
the device and equipment that they need. Mayor Reinert concurred that technology
changes and maybe something other than the iPad will work better for some.
Mayor Reinert noted the additional $42,000 in revenue that the council identified
previously; he does not see that indicated in the budget. He located notes from a
previous meeting where that additional revenue was identified.
At this point, the council noted the following changes:
- $50,000 reduction in Fire Department contingency;
- $90,000 from Office Equipment fund;
- $20,000 reduction in fuels (Fleet);
- $25,000 for fund shift for cost of part-time mechanic;
- $42,000 additional revenue.
Mayor Reinert identified a remaining gap of $130,672 and he suggests that responsibility
for identified revenue or expenditure changes in that amount be apportioned to
departments based on their budget percentage.
Administrator Karlson remarked that he has determined that the organization needs a full
time human resources person and he proposes that position be added in lieu of the
Assistant Administrator position originally included in the budget. Along with that he
anticipates continuing the scanner tech position for another six months into 2015 and
possibly other adjustments that he will outline at the December work session.
Mayor Reinert reiterated that he would like the department directors to identify a solution
for the remaining gap ($130,672). There is time to finalize the figures so staff can work
on that goal and the council can have more discussion as necessary.
Finance Director Cotton reviewed the figures:
$50,000 from the Fire Department contingency;
$20,000 savings in fuel;
$25,000 part time mechanic cost shift;
$90,000 from the IT equipment fund;
$315,000 from the EDA Lease Revenue bond debt service payment;
$42,000 in identified revenue or expenditure changes.
The meeting was adjourned at 8:05 p.m.
These minutes were considered, corrected and approved at the regular Council meeting
held on December 14, 2015.
e Bartell, City Clerk Jeff ' e , ayor
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