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HomeMy WebLinkAbout2017.08.22 CC Minutes - Midyear Budget Workshop MINUTES FOR THE HUGO CITY COUNCIL MID-YEAR BUDGET REVIEW WORKSHOP MONDAY,AUGUST 22, 2017 Mayor Weidt called the meeting to order at 3:30 p.m. PRESENT: Haas, Klein, Miron, Petryk, Weidt ABSENT: None STAFF PRESENT: City Administrator Bryan Bear, Finance Director Ron Otkin, Accounting Clerk Anna Wobse, and City Clerk Michele Lindau 2018 Budget Presentation Finance Director Ron Otkin began by stating that the surplus of$329,109 from 2016 will allow the City to do some things that were talked about last year but did not make it into the budget, specifically the replacement of the fire hall roof, a space needs study, and the start of a building maintenance fund. Ron talked about the on-going practice of contingency funding. Market values have increased by 10.1%, and Washington Count estimates the City's tax capacity will increase 11.7%. Ron acknowledged that the Council would like no increase in the urban tax rate, and the Finance Department would like to see a balanced budget with no structural deficit. He explained the Debt Service Levy for 2018 is $624,936. By 2020, the City will have additional levy capacity for road projects, but for now, the CIP Levy will remain at $539,637. He recommended reinstating the stormwater levy to pay for water reuse projects and future pond maintenance. He also covered the levies for parks and sealcoating. He explained that the levy for firefighter's relief will be banked as their funding schedules do not require a mandatory contribution from the City next year. Ron reviewed the general fund budget, which contains a 2% cost of living adjustment and step increases totaling $47,929. Also, salary market data showed the City's utility billing clerk should be moved to a higher paygrade. He recommend the position be increased from pay grade four to five. Also budgeted was an hourly $.50 per year increase for firefighters who are between five and ten years of service, as part of the fire chief s retention program. Health insurance has increased by 6% due to age of employees and cost of health care, but there will be no changes in the employees' deductibles. Law enforcement will increase in 2018 due to a full year of having an investigator. This position was added midyear in 2017. With these increases equaling 2.36%, the General Operating Budget would be $5,329,296. Finance Director Otkin proposed an overall tax levy of$6,589,302 for 2018, resulting in a balance budget and no change in the urban tax rate. Hugo City Council Meeting Minutes for August 22,2017 Midyear Budget Review Page 2 of 2 Discussion on Street CIP and Seal Coating Program- Public Works Director Scott Anderson Public Works Director Scott Anderson shared the list of projects completed over the past eight years. Scott talked about the sealcoat program and the positive results they have experienced until lately, possibly related to industry-wide changes to the type of rock or oil being used. Benefits do not outweigh the negative and he recommended putting the sealcoat project on hold and allocating the money to a mill and overlay program. The mill and overlay program would run parallel to the CIP, but would change the cost estimates of some of the projects in the CIP. Council talked about issues related to seal coating versus the mill and overlay on streets. Scott stated that streets will be considered on a case by case basis. Council agreed to move forward with exploring the Oneka Lake Boulevard and Henna Avenue project. Discussion on Replacement of 1991 Peterbilt Pumper Truck-Fire Chief Kevin Colvard Fire Chief Kevin Colvard talked about the replacement of the 1991 engine, their oldest piece of equipment. In 2013 a formal equipment replacement document was created and it was determined they needed to replace diesel apparatuses on a 30 year cycle. The 1991 Peterbilt engine truck should be replaced in 2021 and they would like to replace it with an aerial apparatus to meet the growing and changing needs of the community. He reviewed the benefits and shortcomings of purchasing a replacement pumper/tanker versus the aerial apparatus option. Chief Colvard felt the aerial apparatus would better meet the future needs of the community. The aerial apparatus is multi-purpose with five major functions for use, and would greatly assist with taller and larger buildings and would allow for earlier response times, but shortcomings were the price tag and need for additional training. If the department had their own aerial apparatus, it would also reduce reliance on mutual aid departments. To procure an aerial, it would take 2-3 years and cost approximately $1,400,000. The Council discussed with Colvard the number and types of calls, proximity to hydrants versus the larger capacity of water in a new engine truck, and the benefit of a ladder truck for rescue and for suppressing a fire from above. Council asked that staff look at developing a plan to pursue an aerial apparatus to replace the 1991 Fire Engine by 2021 Council also asked questions on the benefit of the $.50 step increase as a retention factor. Colvard replied that it is working but probably not a deciding factor in retaining firefighters. Removing the ambulance duties and dedicating more time for community events has brought more interest in being a member of the department. Hugo City Council Meeting Minutes for August 22,2017 Midyear Budget Review Page 2 of 2 Direction to Staff It was the Council's consensus to direct staff to prepare a preliminary tax levy resolution for 2018 that does not raise the urban tax rate. The Council also directed staff to continue with the budget process as presented and provide guidance on how to fund the purchase of an aerial fire truck. Adiournment Klein made motion, Miron seconded, to adjourn at 5:15 p.m. All Ayes. Motion carried. Respectfully Submitted, Michele Lindau City Clerk