HomeMy WebLinkAbout11-16-2015 Council Special Work Session MinutesCOUNCIL SPECIAL WORK SESSION November 16, 2015
APPROVED
CITY OF LINO LAKES
MINUTES
DATE : November 16, 2015
TIME STARTED : 6:05 p.m.
TIME ENDED : 8:30 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 Services Director Rick
DeGardner; City Clerk Julie Bartell
2016 Preliminary Budget Review — Finance Director Cotton reviewed new infolination:
There will be a $9,000 revenue increase due to expansion of the New
Creations Child Care Center into City storage space;
- There will be health care savings of approximately $35,000;
- Savings of approximately $18,000 resulting from changes to a current
employee position (removal of IT duties which will be shifted to direct
assistance from Metro iNet).
Administrator Karlson suggested that those savings totaling $62,000 could be used to
lessen the use of fund reserves.
Looking at several past discussions on a gap analysis, staff pointed out changes included
from the council review on August 24 of $323,000 savings or revenue in 2015 budget.
That and other reductions brought the gap down to $477,000 (using some Closed Bond
Funds). At that point, the council decided to cover the first debt service payment for the
fire facility through transfer from the CBF. Mr. Karlson noted that the current transfer
from the Closed Bond Fund (CBF) is at about $1 million and would leave the fund under
$1 million in balance.
The mayor and the city administrator discussed what had been decided at previous
meetings. The administrator felt that some items had just been discussed but not
authorized to remove from the preliminary budget. The figures will have to be reviewed
and decided again.
Mayor Reinert noted the Parks program capital request of $40,000 for open air shelter
and $35,000 for a pickleball court. The council concurred to not fund those capital
items.
The council reviewed with staff increases included in the Government Buildings line
item, mainly related to landscaping on the island in front of city hall and costs for
maintaining the old and new fire station facilities.
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COUNCIL SPECIAL WORK SESSION November 16, 2015
APPROVED
Within the Streets Department item, Director DeGardner explained a $20,000 increase
proposed for street work; in his judgment it is an important increase, along with an
additional temporary position to focus on maintenance along county right/of/way. No
reductions were directed.
The council reviewed the Office Equipment Fund with a balance of approximately
$250,000 and an annual appropriation as well. The mayor suggested that with such a
large balance, that may be overfunded. Administrator Karlson explained that there is the
need to replace equipment and while some of that activity was delayed due to staff time
constraints, there will be movement now and the funds are needed for projects like the
meeting room upgrades, a phone system overdue to be upgraded, copier replacement and
computer replacement. The council discussed reducing either the balance or the annual
appropriation. The council concurred that the annual appropriation of $25,000 would
not be included in 2016.
Comprehensive Plan Funding was reviewed. Community Development Director
Grochala explained plans to provide budgeted funds for the next few years in preparation
of that plan work. No reduction was authorized.
The mayor asked if there will be any change in the valuation projection. It is currently
under one percent. Finance Director Cotton said it would most likely remain flat or
decrease slightly due to valuation reductions.
The General Fund contingency was discussed. Mayor Reinert suggested that it is funded
at a level not normally required so he suggests cutting the $100,000 by half.
Community Development Director Grochala pointed out that next year the city would
normally be funding a city survey from that source (precedes the Comprehensive Plan).
The $50,000 reduction was authorized.
Council Member Rafferty asked about temporary employment line items that show up
throughout the budget. Public Services Director DeGardner explained how temporaries
are used within the environmental (tree work), solid waste (inter position offset by grant
revenue), streets (seasonal street patching mainly), fleet (seasonal mechanic), parks
(seasonal park maintenance workers) and recreation departments. That seasonal staff is
a bargain for the city considering the wages paid.
A recap of the status of the budget adjustments was attempted. The Finance Director
explained that in order for the city to reach the tax capacity rate of 45.9%, the change in
revenues or expenditures must total $1,011,590. Of that the debt service levy that the
council has decided to fund from the CBF in the amount of $311,092 can be subtracted,
for a new figure of $696,000. The mayor said from that comes $62,000 identified
earlier, $75,000 from parks, office equipment fund $25,000, $50,000 each from two
contingencies.
The city fund reserve was discussed and the Finance Director projected the percentage at
the end of 2015 would be 50% and 51% going through 2016. The mayor suggested
appropriating $100,000 from the fund reserve. Council Member Roeser brought up the
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COUNCIL SPECIAL WORK SESSION November 16, 2015
APPROVED
matter of the city investment strategy. The city receives very little in investment income
and he wonders about possible gains in that area. Ms. Cotton noted that her preliminary
review of city investments indicates mainly short term investments and it may be possible
to work in some longer term investments to increase revenue while still balancing risk.
Mayor Reinert suggested that the city needs to bring in the investment manager from
Anoka County because they have found a way to increase their investment income.
Council Member Kusterman requested a list of the city investments along with a schedule
of bond payoffs.
There was an overall discussion about how the CBF fits into the budget picture. The
exercise of reducing expenditures and increasing revenue figures in the budget are based
on actual expenditures and revenues and the transfer from the CBF to provide funding
cannot be exactly known at this point. The mayor said he sees the CBF as the last
source and he will be doing more work before he gets to that fund.
The meeting was adjourned at 8:30 p.m.
These minutes were considered, corrected and approved at the regular Council meeting
held on December 14, 2015.
e Bartell, City 1 lerk
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