Loading...
HomeMy WebLinkAbout07-30-12 WSMinutes Lakeville City Council Work Session July 30, 2012 Lakeville City Hall - Marion Conference Room In attendance: Mayor Mark Bellows Council Member Laurie Rieb Council Member Kerrin Swecker Council Member Matt Little Council Member Colleen LaBeau Staff. Steve Mielke, City Administrator Dennis Feller, Finance Director Dave Olson, Community and Economic Development Director Daryl Morey, Planning Director Steve Michaud, Parks and Recreation Director Chris Petree, Public Works Director Tom Vonhof, Police Chief Judi Hawkins, Deputy City Clerk The meeting was called to order at 5:00 p.m. by Mayor Bellows. ITEM # 1 — Adjourn to a closed meeting. Motion was made by LaBeau, seconded by Rieb, to adjourn to a closed session to review proposed Settlement Agreement of a Lawsuit filed by James and Emily Reitter against the City of Lakeville and MOM Company. Motion passed. ITEM #2 — Proposed 2013 -14 Budget and Tax Levy Discussion. Staff is proposing a 2.5% increase in the tax levy for 2013 and 3.0% increase in 2014. General Fund: There is an un- appropriated /unencumbered 2012 beginning fund balance of $911,694 as a result of expenditures being less than budget estimates ($610,982) and 2011 revenues exceeding budget estimates ($300,712). Revenues were the result of collection of delinquent taxes, increased building permits, and unfilled City positions. Favorable weather conditions resulted in lower snow removal and heating expenditures. Staff recommends this $911,694 be appropriated to finance projects which would result in a corresponding reduction in future tax levies. The proposed budget and tax levy include $611,694 appropriation to the Equipment Fund and the remaining $300,000 to the Kenrick Avenue round - about. City Council Work Session Minutes July 30, 2012 Page 2- The appropriation to the Equipment Fund would reduce the tax levy for the over a three - year period. Council Member Swecker asked why not appropriate it all in one year. Feller stated that would reduce the tax levy for one year but cause it to spike the following year. Reducing the equipment debt would have the same result as appropriating the same amount to the general fund. 2013 revenues are proposed to increase 3.4% from the 2012 budget, primarily due to increased property taxes and building permit revenues. Decreases are anticipated for intergovernmental revenue due to the recent gun range cleanup costs and investments. Fee adjustment recommendations will be presented at the September work session. A fee structure will need to be in place by the time the Heritage Center opens. Expenditure increases in 2013 are primarily related to personnel costs, with the filling of several positions and the addition of a new street maintenance position. Proposed major initiatives include: • Assistant City Administrator to replace the position which was vacated in 2008; • Paid Engineering interns; • Reinstatement of funding for schools and conferences to provide more opportunities for professional development for employees; • Upgrade to iPods for improved technology for building inspections; • Automated online employment application software for HR, supported by LOGIS, would save time and printing costs, • Addition of 15 rookie firefighters; • Facility attendants at Heritage Center to assist with rentals; Little asked about turnover of employees for similar positions at the Arts Center - they have all been there for at least three years; • Irrigation system at the Arts Center. LaBeau asked if there is a risk that vendors at various events would damage the sprinkler system. Feller stated that this would be carefully monitored and vendors would be responsible for any damage. Other non - budgeted items which Council might consider include: • Increases in Mayor and Council salaries - action would need to be taken prior to the election; • Membership in the AMM Metro Cities; staff is not advocating re joining at this time; • Addition of a code enforcement officer position eliminated in 2008. This includes home foreclosure monitoring, weeds, junk cars, etc.; Council can consider the level of enforcement on such things as sign violations and a possible Administration Citation process; Little asked about the work load of this position and why this was not listed as a priority. Mielke stated it is a result of Council's budget direction last year. Council asked for a more detailed analysis of filling this position. • Parks Dept. rental canoe rack at Orchard Lake Park; could be paid for through user fees or possibly donated by a civic group. It was suggested that more than one rack might be needed; • Reopening of additional outdoor skating rinks. Last year Council authorized reopening Highview Heights rink. The Parks and Rec committee is recommending City Council Work Session Minutes July 30, 2012 Page 3- opening up Cherryview, Ouail Meadows and Rolling Oaks rinks. Little stated this is a lesser priority compared to some other items on the non - budgeted list. Mowing of boulevards adjacent to county roads. Little asked if this could be done by a seasonal employee and the cost of purchasing rather than renting an additional mower. LaBeau asked if the county would reimburse the city or pay a portion of the maintenance. Parks Gardener - $16,000 annually Parks - playground replacements. Not included in any budget in the next five year. Options for funding include a bond referendum or use of fund balance, or liquor funds. Rieb feels it is important to add some playground replacements to the budget. LaBeau believes the tot -lots are under - utilized. She asked if there is any way to analyze how much they are used by the community. Little suggested there should be some way to determine how many people are using the parks. Staff will follow up with this at the August work session. 2014 Budget: Revenues in 2014 are estimated to increase by $370,149, largely due to the tax levy. Expenditures are estimated at $211,208, primarily due to the elections, step increases for employees, and major initiatives. 2014 Major Initiatives include: • The Urban Reserve Comprehensive Plan Update is appropriated in the Planning budget for $10,000. • Engineering Technician. The city currently uses the services of WSB. • Streets - Service Technician - a full time fleet supervisor would allow the fleet lead to spend more time of the vehicles. • Fire volunteers' compensation - increase in pay for calls and training or consider a pay per hour structure rather than a pay per call -out. The cost is approximately $18- 22,000 annually. The personnel committee will review various options. 2014 Non - budgeted • City Clerk - Elections. If the Voter ID amendment passes, election costs will increase an estimated $10- 15,000. • Affordable Health Care. Effective in 2014 the City may need to provide health care to seasonal employees working more than 30 hours per week. The fund balance at the end of 2013 is 44.8% and at the end of 2014 it is 43.7 %. This is within the accepted guidelines for fund balance. The overall 2013 tax levy for all proposed budgeted items is 2.5 %, of which 1.6% is for general fund operations. This is a reduction from 2.7% in 2012. One percent point equals approximately $220,000. Special Revenue Funds • Communications Fund budget provides cable TV services on channel 16, marketing initiatives, Messages, and the City website. Non - budgeted: • Community calendar. Information from all departments could be included in a printed calendar distributed to all residents. Cost would be approximately $20,000, City Council Work Session Minutes July 30, 2012 Page -4- some of which would be offset by advertising. Council asked if the school district still provides a calendar and suggested a collaborative effort. Little felt that most people get their information online and from the local paper, where the City already has made an investment. PEG fees - Public Education and Government fees are being explored. Meeting room improvements. The meeting room at the WTF is in need of new carpet and furniture and updated technology, sound equipment, possible Smart Board, etc. The possibility of charging for rental of the room has been discussed and will be explored further. Updates to the room could be funded through the Communications budget. Staff will prepare a budget for improvements. Equipment acquisitions - Council might consider funding equipment through the Communications Fund so Liquor Funds could be used for other needs. The Economic Development Fund accounts for administrative fees for loans to small businesses expanding or locating in Lakeville. Little asked about membership in the Greater MSP; Olson stated that staff does not recommend joining at this time. Debt: At the end of 2012, the City of Lakeville's outstanding debt will be approximately $109,745,000. Feller provided an overview of the savings that have been realized by refinancing street reconstruction bonds and capital improvement bonds. General obligation bonds will be issued to finance upcoming street reconstruction projects. About half of the debt is paid with property taxes and the remainder from various revenue sources. Capital Projects Funds: • Municipal State Aid Street Fund, • Pavement Management Fund • Improvement Construction Fund: Major initiatives include Kenrick Ave. roundabout; Highview Avenue - 173rd St. to Interlachen; and Kenrick Avenue extension. • Park/Trail Dedication Fund: Council members' priorities are the Dodd Blvd. trail from 208th to Co. Rd. 50 and the 185th Street trail from Jamaica to ipava which is planned be constructed in 2014 in conjunction with the 50/60 roundabout. • Trail Improvement Fund: WSB's recent report recommended the City appropriate $200,000 per year for trail maintenance and replacement. Council discussed Highview /Holyoke at 190th Street traffic and residents' concerns about safety. Additional traffic will be generated by the Crescent Ridge development. Possible alternatives could be bypass or turn lanes or possibly a roundabout. Building Fund: The ABLE fire training facility and the replacement of the City Hall roof- top HVAC units are proposed to be financed from the Liquor Fund in 2013. • Equipment Fund: acquisition and replacement of vehicles and equipment is financed primarily with property tax levies and also by General Fund, Liquor Fund and Compensated Liability Fund. Mr. Petree discussed the strong need to replace the City motor grader. City Council Work Session Minutes July 30, 2012 Page -5- Major initiatives include additions to IT, Police, Fire, Streets and Parks. The equipment fund budget includes replacement of the current Parks showmobile in 2013 at a cost of $ 110,068. In addition to the Parks events, the Showmobile is utilized by non -city events such as Pan -O -Frog and Taste of Lakeville. Council discussed possible rental of a showmobile unit at approximately $8,500 annually, imposing a charge to user groups, and staff time needed to transport and set up. Council members asked to remove purchase of this item from the proposed 2013 budget and possibly reconsider purchase in the future. 2014 major initiatives include Street Dept. Mobile Resource Management System, technology which would provide more efficient management of de -icing chemicals. Election equipment replacement is proposed to be financed by the Liquor Fund. Non - budgeted items include a police squad car video system and Streets message board. Feller reviewed Enterprise Funds: Liquor Fund, Utility Funds, and Internal Service Funds. In summary the proposed tax levy will increase by $570,673 (2.5 %) in 2013 and by $710,610 (3.0 %) in 2014. Staff is recommending transferring the compensated liability fund to the equipment fund. Due to changes in accepted accounting principles, the fund has lost its usefulness. Closing the fund will support stability in the tax levy. In discussing the budget process timeline, Swecker stated that she will not be present at the September 24 work session. Council will set an additional budget work session for September 10 at 5:00 p.m. A public budget informational open house and a Chamber Open House will also be scheduled. ITEM #3 — Adjourn The meeting adjourned at 8:30 p.m. Respectfully submitted, Judi Hawkins De'puty Clerk f1(' Mark Bellows Mayor