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HomeMy WebLinkAbout09-11-2012 CCM LAKE ELMO CITY COUNCIL MINUTES SEPTEMBER 11, 2012 Page 1 of 3 CITY OF LAKE ELMO CITY COUNCIL SPECIAL MEETING MINUTES SEPTEMBER 11, 2012 Mayor Johnston called the meeting to order at 6:30 P.M. PRESENT: Mayor Johnston, Council Members Emmons, and Pearson [Council Member Smith arrived at 7:01 P.M.] Also Present: City Administrator Zuleger, City Attorney Snyder, Finance Director Bendel, Planning Director Klatt, and City Clerk Thone. ITEM B: City Administrator Zuleger provided an administrative overview of the proposed 2013 Budget. A small discussion was had to remind everyone of the possible need to add or include additional funds for traffic issues. Several other points were highlighted, including the elimination of the use of the internal service funds for backfilling shortfalls, the inclusion of contingency funds, and the proposed paying down of debt to maintain a high bond rating. Mr. Zuleger noted that the staff attempted to provide a true operating cost budget. The proposed budget increases the Levy $50,342. ITEM C: GENERAL OPERATING ACCOUNT REVIEW Finance Director Bendel informed the Council the City anticipates about $3,000,000 in gross revenue which is a little less than in the past due to a reduction in grant money and other anticipated revenue reductions. There is an anticipation of increased permit revenue coming in. The 2012 budget was $2,900,000. The city came in at $2,950,000. The overage was primarily due to the transfers coming in higher because of paying down the $200,000 in debt. The 2013 figures are increased by about $100,000 mostly due to staff additions. Council Member Pearson and the mayor asked for clarification on the increase in the Fire Department budget. Finance Director Bendel explained that those funds had historically been in the CIP fund and are now in the operating budget. City Administrator Zuleger explained the policy change for the Council. ITEM D: ENTERPRISE/UTILITY ACCOUNT REVIEW Finance Director Bendel noted that the funds are cash-flowing, which is vital for future planning. At the end of 2011 the enterprise fund had $839,000. The staff is projecting $971,000 in the 2013 budget available for future infrastructure development. City Administrator Zuleger also explained that this year the staff did not allocate a significant portion of surface water revenue to fund the Finance Department. The realigned expenditures correct past misallocations. Council Member Emmons sought clarification regarding the status and funding of the Water Fund. Mr. Zuleger clarified that the Water Fund is cash-flowing for the day-to-day operations, but the looming debt service needs to be addressed. LAKE ELMO CITY COUNCIL MINUTES SEPTEMBER 11, 2012 Page 2 of 3 ITEM E: SPECIAL ACCOUNTS REVIEW Finance Director Bendel explained that this section is actually the Internal Service funds. The recommendation is to expend the funds currently available, but to not transfer any additional funds into that account. The “Radio Replacement Fund” currently has about $72,000. All proposed expenditures will be brought to the Council separately. One item that is needed is a new large format printer for the Planning Department. The “IT Fund” currently sits at about $24,000. One expected expenditure will be required upgrading of staff computers. The “Furniture, Fixtures, & Equipment Fund” were mostly expended performing the renovations to city hall. A discussion was had with council members, and City Administrator Zuleger explained all large expenditures not laid out in the budget will be brought to the Council for approval instead of using the Internal Service Funds. The difference in the CIP Fund process was distinguished from the standard expenditure submission to the council. [Council Member smith arrived at 7:01 P.M.] ITEM F: 2013-2015 CIP REVIEW Finance Director Bendel and City Administrator Zuleger explained this was a preliminary draft pro forma. Some work items are still outstanding regarding the pro forma. It was noted that it does not include any revenue from 3M litigation. Finance Director Bendel noted that the CIP will not impact the 2013 Budget Levy. It will impact the 2014 Levy and forward. In response to Council Member Emmons inquiry about the CIP numbers being placeholders until more specific information is brought back to Council, City Administrator Zuleger advised that the Levy motion should include language regarding the pending issues. Mr. Zuleger also pointed out that the council needs to re-hear and re-vote on the Keats Avenue Trunk Water Main. If it did not pass, it would affect the Inwood Avenue Trunk Water Main and booster station and require a redesign, which would have an impact on the figures. Also, there is additional sewer work that needs more investigation in the Legion Avenue/Lake Elmo Avenue area that may affect the calculations. Lastly, it was reiterated that the need for additional fire apparatus will have an impact as well. Mayor Johnston raised the issue of traffic safety enforcement. City Administrator Zuleger explained the estimated cost of $70,000-80,000, but noted that further information is still needed, including the enforcement report of the pilot program and discussion with Washington County Sheriff’s Office. Council Member Smith expressed her wish to refrain from traffic enforcement discussions at this time. LAKE ELMO CITY COUNCIL MINUTES SEPTEMBER 11, 2012 Page 3 of 3 A discussion was had between council and staff regarding once the levy is set, it can be reduced, but it cannot be increased. The need for additional staff was discussed. All members agreed that more information regarding the traffic issue is needed before a final decision on funding a solution can made. ITEM G: PUBLIC COMMENTS/INQUIRIES: No public comments. ITEM H: ADOPTION OF PROPOSED LEVY MOTION: COUNCIL MEMBER SMITH MOVED TO ADOPT THE RECOMMENDED BUDGET LEVY OF $3,163,359 REFLECTING AN INCREASE $50,342. MOTION SECONDED BY COUNCIL MEMBER PEARSON. MAYOR JOHNSTON MOVED TO AMEND THE MOTION BY ADDING AN ADDITIONAL $70,000 PLACEHOLDER FOR TRAFFIC ENFORCEMENT OR OTHER PUBLIC HEALTH AND SAFETY NEEDS WITH THE OPTION TO REMOVE IT. MOTION SECONDED BY COUNCIL MEMBER PEARSON. MOTION CARRIED 4-0. AMENDED MOTION: ADOPT THE AMENDED BUDGET LEVY OF $3,233,359, REFLECTING AN INCREASE $120,342. MOTION CARRIED 4-0. ITEM I: DESIGNATION OF DATE AND TIME OF PUBLIC HEARING The staff recommends the date and time of December 4, 2012, during the regular City Council meeting at 7:00 P.M. for the 2013 budget public hearing. MOTION: COUNCIL MEMBER SMITH MOVED TO DESIGNATE THE DATE AND TIME OF THE 2013 BUDGET PUBLIC HEARING AS DECEMBER 4, 2012 AT 7:00 P.M. MOTION SECONDED BY MAYOR JOHNSTON. MOTION CARRIED 4-0. Council members held a very brief discussion regarding the future of the Arts Center. It was agreed upon that that item would be placed on an agenda in the near future. ADJOURN: The meeting adjourned at 7:45 P.M. LAKE ELMO CITY COUNCIL _______________________________________ Dean A. Johnston, Mayor ______________________________________ Sandie Thone, City Clerk