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HomeMy WebLinkAbout08-17-2015 Council Work Session MinutesCOUNCIL SPECIAL WORK SESSION August 17, 2015 APPROVED CITY OF LINO LAKES MINUTES DATE : August 17, 2015 TIME STARTED : 6:00 p.m TIME ENDED : 9:25 p.m. MEMBERS PRESENT : Council Member Stoesz, Kusterman, Rafferty, Roeser and Mayor Reinert MEMBERS ABSENT : None Staff members present: City Administrator Jeff Karlson; Community Development Director Michael Grochala; Public Safety Director John Swenson; Public Services Director Rick DeGardner; City Clerk Julie Bartell 2016 Budget Discussion -The council had received a budget in draft foiiii and an analysis sheet indicating budget gaps for discussion. Mayor Reinert indicated that he would like to start with a review of the 2015 budget so that the council can determine if there are items in it that will not be needed in the 2016 budget and savings that could translate into next year also. Contingency - There is a balance of funds that probably will not be used in 2015 so that may be available. Assistant City Administrator Position - It was funded and has not been filled as yet. Administrator Karlson indicated it would not be filled until about November so that would be savings of about $60,000. Cable Television - The expenditure was explained; and the funds being put aside for improvements were also reviewed. Finance Department - The council asked about savings due to a vacancy in the finance director position however it was found to be minimal since vacation time has been involved. The mayor questioned an increase in the Finance line item related to the new Springbrook contract as well as Metro iNet services (information technology provider for the City). There was also an increase in consultant fees; Mayor Reinert recommends that professional staff should keep use of consultant services to a reasonable level. Health Insurance - Administrator Karlson explained changes in federal law that causes the City to be rated as a small employer. That changes the way that quotes for insurance are given to the city. The blended rate for the City is expected to be about a 7% increase but with more impact for certain employees. Other options are being considered as well. The mayor indicated that he sees savings about $10,000 under the Finance items and he will look again later to see if there is more. 1 COUNCIL SPECIAL WORK SESSION August 17, 2015 APPROVED Legal Consultants - Administrator Karlson reviewed anticipated needs through the end of the year; he does not expect savings in this line item this year. He added that the budget numbers under review for 2015 are only through May 19. Economic Development - Community Development Director Grochala indicated that there may be some savings but revenue is also a consideration. There could be some intern salary savings but it will be minimal Planning and Zoning - The mayor noted a $20,000 jump in two years. Community Development Director Grochala reviewed the line items. No savings were indicated. Engineering - Community Development Director Grochala explained that there is a basic cost of services increase. The number should be pretty static within about $5,000. The mayor indicated that the council will expect more up to date budget information in the next few weeks and the numbers will be clearer. Community Development - When asked if there will be funds left over from 2015 to 2016, Mr. Grochala said there is some possible savings in personnel, based on whether recent adjustments were made. At best that would be $12,000. Environmental - The mayor noted a decrease in the past year but Mr. Grochala explained that it is not real savings due to a funding change. The increase in this area was explained as personnel (four seasonal staff). Solid Waste Abatement - The budget is going up but that is related to increased revenue through grants. Forestry - The budget is going up and Mr. Grochala recalled the council decision to buy trees for the Emerald Ash Borer issue. When asked if there will be funds left over in 2015, staff indicated mostly like not. Public Safety - The mayor clarified the cost of one new patrol officer position for part of the year that was added. The rest of the increase relates to wage and cost increases. Public Safety (Fire) - This item is a large number and the mayor expects there will be savings. Public Safety Director Swenson indicated that there will be some grant funding ($10,000 that he knows for certain). Mayor Reinert suggested that he expects at least $100,000 on top of that but the council will be looking again. Building Inspections - There is an increase related to business inspections; there have been almost no inspections done by the fire district but those inspections are necessary and there will be a half building/half fire inspector position added to the budget. That cost will be somewhat offset by revenue. Streets - The mayor noted increases and Public Services Director DeGardner explained that the largest increase is in the cost of supplies and that is based on need; it is always an estimate. There was discussion about the use and cost of salt and sand for the roadways. 2 COUNCIL SPECIAL WORK SESSION August 17, 2015 APPROVED Mr. DeGardner indicated that there is $43,000 budgeted in 2015 and, since there was no need early in the year, he suggests there could be a $20,000 savings there. The street patching funding that is spent is based on staff availability to do the work and that availability will be down somewhat this year due to the three weeks spent on storm damage removal. Mr. DeGardner said it is important to keep the $65,000 budgeted for next year but he could possibility see savings of $20,000 this year. Overall the mayor indicated at savings in the Streets budget of $52,000. Fleet Management - Mr. DeGardner indicated savings of $25,000 (personnel). Parks - There was a 2014-2015 increase in contractual maintenance related to work on city trails. Staff is requesting an increase into 2016 for that same line item because it is needed. Mr. DeGardner suggested that a $20,000 savings is possible however. There was $5,000 in maintenance supplied identified. Recreation - The budget has stayed pretty much flat over the past few years; there were no savings indicated. Contingency - A year end balance is estimated at $100,000. The mayor totaled his savings estimate at $323,000. The council then reviewed the revenue side of the 2015 budget. Property Taxes - The amount certified for 2015 is what the city will get. Market Value Credit - The mayor suggested that there is an increase of $4,000 that seems pretty regular. Municipal State Aid (MSA) - The mayor suggested that it goes up about $10,000 each year. Mr. Grochala said he has the number for 2015 and he will provide that information to the council. The mayor will add $15,000 based on infoimation received. Police State Aid - The police chief was not able to estimate the aid for this year; he will research the question. (Back to) Property Taxes - Delinquent taxes seems to rise each year. The revenue estimate for 2015 could be less or more than included in the budget. Fiscal Disparities - There is an increase indicated but staff recommended that they be allowed to research that item further. Business Licenses - Based on an increase in the number of restaurants in the city, an increase of $4,000 is expected. Investment Management Charges - Staff will report more on the $50,000 annual charge. 3 COUNCIL SPECIAL WORK SESSION August 17, 2015 APPROVED Engineering Charges - Mr. Grochala explained that the charges are based on planning services provided. Since there is more development underway and coming, the mayor expects an increase of at least $10,000. The total increase in revenue indicated by discussion was noted at $42,000. The council discussed the funding gap. Administrator Karlson noted the only change from the last discussion is to reflect a contribution to the Ambassadors Program of $1,500. The mayor moved to the 2016 draft budget. Administration - The increase in the budget is primarily related to the new Assistant Administrator position. The council will continue to consider that change. Finance - The mayor sees an increase of $2,500 per month in Metro iNet charges and that is very high. The City Administrator explained that it would be expensive to replace their services. The city has been adding units and that increases costs. The council would like more explanation on the services and costs. It was pointed out that Springbrook is a part of the cost increases to this line item. Comprehensive Plan - Staff reviewed activities that would typically occur in the coming year. The bulk of the activity will occur in 2017 but noinially the city would start building a reserve in this funding area. Public Safety - Chief Swenson said that previous council discussions have led him to understand that he would be adding an officer in October of this year. He will be bringing forward plans and a policy for future staffing for discussion in 2016. The mayor agrees with having a policy because it makes moving forward clear. He recalled his experience with determining staffing levels. The mayor said he supports adding the one officer, beginning in October of this year. The reduction of three additional officers would reduce the 2016 budget number by $248,000 and the department would be at 27 sworn positions. The chief explained the increase in the department budget (salaries, shifting some costs from the fire department to the police department). The council will have another budget discussion soon. Some of the carryover discussion will relate to fiscal disparities, Metro iNet and the police department budget. The meeting was adjourned at 9:30 p.m. These minutes were considered, corrected and approved at the regular Council meeting held on September 14, 2015. uh.. e Bartell, Cil Clerk JefReinert, Mayor 4