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HomeMy WebLinkAboutItem 06.c�b CITY OF LAKEVILLE COUNCIL WORK SESSION MINUTES September 10, 2012 Mayor Bellows called the meeting to order at 5:05 p.m. in the Marion Conference Room of Lakeville City Hall. Council Members Present: Laurie Rieb, Kerrin Swecker, Matt Little Colleen LaBeau, and Mayor Mark Bellows Council Members Absent: None 2. Citizen comments There were no citizen comments. 3. Motion was made by Rieb, seconded by Suet, to ajqurn t a closed meeting to consider a Letter of Intent to pure prope X0732 Holt .� Avenue. , ;_ � ��� Community and Economic Development - - ector Davy ( ion provided an overview of the terms and conditions of a Let t subrattte! #o the City of Lakeville. Council discussed issues to be addressed d directo sta€ to work with the City Attorney and the purchaser to draft �'purcha ?= reement for Cc, cil consideration. The Work Session resumed ;X M Staff Present: Steve Mielke CtJ& Admim*r, ,6tor, ,Dennis Feller, Finance Director; Chris Petree, Putt tc Works Direr, Brenda Visnog ),p_� Liquor Operations Manager; John Henne�i„ *4m, Parks and reation Director; m Vonhof, Police Chief; Mike Meyer, Fire Chief, Miep Sgt. ann; Tom Nesseth and Julie Werner, Senior Accountants; ar "di Hawker l p ty Clerk 4. Contmut 2013�i nBudget isdO ions 0 Dennis Feller stated t1h4#rAhe preliminary 2013 tax levy which was adopted on Septembi 4, 201 reflects a 2.7% increase compared to 2012. This will result in a $3 increase, =on Mme valued at $214,000 (median value). A commercial - industrial parcel value �: , M will have an estimated $403 increase in the City share of property taxes. The property tax burden has shifted from residential to non- residential properties due to the continued decline in residential property values of approximately 6.7% while the C/I properties have remained relatively stable. If the tax levy was reduced by $75,000 the residential tax increase would be zero and the C/I increase would be $385. A tax levy equal to the 2012 tax levy would result in a reduction of $22 for residential and an increase of $257 on C /I. In order to avoid any increase for commercial /industrial properties, the City's tax levy would need to be reduced by $1.7 million, which would result in a residential reduction of $66. City Council Work Session Minutes September 10, 2012 Page 2 LaBeau stated that businesses need to be aware of the upcoming increases and would like to see a chart with two or three scenarios to make the increases easier to understand. Feller believes this would also be beneficial information to have available at the October 2 nd Chamber budget open house; he will prepare materials. Little asked how much tax base is being added from 2012. Feller will distribute information on new construction and changes in market value to Council. B. 2013 Department Budget Review Feller referred Council to the cover memo and highlights of any significant budget chang information on their respective budgets. Fol refer any questions to the department directors Police: Chief Tom Vonhof presented the Police At 76 %, Personnel Services is by far accounts for the majority of the budget i overtime, and employee benefit cot personnel in the budget. A reducti6wi and liability insurance due to favorite a Commodities — operating s 'es 3ttcI equipment. Motor Is aretrdrpat with the purchase of more f icieri also irmKided in this budoet department for the ent has provided stions Council can ent get: st pott#�n of the police budget and due t46J t \,A, step salary increases, re are§ n6 quests for additional reflected 64 compensation e aMmuntfidits, safety $applies and other be riuced by using shorter idle times and iiclep� Clothing for new Reserve officers is Oth,o Oh rges and SdiVJi s includes dispatching services at DCC, attorney fees, and utilities, end contract?,aleatng at the Police Station. Little asked about the line item for cleaning the PD : , SWepker asked about the potential increase in medical calls to seraiortousing fajfis s two additional facilities with nearly 200 units are scheduleo ope7t Vonhof ?tatat this will increase first responder calls. Capital,:Outlay -� nhof reviewed major purchases in the 2013 equipment fund budget ;The bud?so rnudes updated technology to provide greater capability to investigate Interns cn Little asked if there was an opportunity for Lakeville to assist otter comrrinities with this technology. Swecker asked awhat point police vehicles are replaced with new models. Sgt. Kornmann staf0cf "Ahat the 2009 vehicles are scheduled to be replaced with more efficient 2013 models. The older vehicles will then be sent to auction and the proceeds will go back to the equipment fund. Fire: Personnel: Chief Mike Meyer stated that the addition of 15 rookie firefighters accounts for the increase in personnel. LaBeau asked if other cities are charged for the rookies they send to the classes. Meyer stated that the instructors are contracted from Hennepin Technical College and it is to Lakeville's advantage to have enough City Council Work Session Minutes September 10, 2012 Page 3 participants to host the class. If other fire departments participate the other cities pay for their own people. An increase from $10 to $11 is proposed for pay - per -call and training compensation is proposed to be increased from $20 to $21. Fire relief contribution fluctuates each year based on several factors. A contribution of $60,000 in 2013 is budgeted in an effort to keep tax levels stable. Major maintenance expenditures include fire station lighting upgrades and exit light replacements at Stations 1 & 2, replacement of the commercial washing machine at Station 3, and purchase of a gear dryer, laptops for frontline vehicles, and a Jacobs Ladder for the fitness room. The fitness e ui q petft i�bsed.b y the firefighters and the police. Little asked if an incentive for m mere her ip had been considered rather than purchase of exercise equipment ; 'ielke ststi that an analysis done a few years ago found that owning the equipmetas rfore Ost effective. He added that Lifetime Fitness is donating refurbished exerb"lse egjuipYnt for Heritage Center. An interactive white board system is also being r?p ed fon� dining rposes as well as for use at public events. Feller will check - ""' " whethef , .' the , ,,Cot, , ntnunication Fund could provide the white board. Public Works — Engineering: Chris Petree reviewed expendi Commodities: No change is t largest part of this budget. Other Charges and Services traffic studies, bridge inspecf increase, in schools and coni licensees. LaBeau asks, ba corSferenfs. Petree st out of the iitro area wh Equipment rtei s inclu replace 2002 for make up the A $'x},000 irrease includes engineering fees for etcd othstrequirements. There is a substantial ices to a�ntat tstaf's professional certifications and the allocai funds for staff to attend out of town it some prdfdsional development opportunities are ributes to a higher overall cost. w plotter /printer, a standing work station, and �-uuao.rywrta — .azure Comm o(tit' es hare is overall budget decrease, mainly due to the current stockpile f,deicerchemica�s left over from last year. Budget increases reflect higher prices f ricant, signs, operating supplies for vehicle maintenance, and asphalt for patching. La, au believes streets are deteriorating more rapidly and asked if there were any changes planned in the de -icing policy. Petree stated that the policy for use of chemicals is not proposed to be changed at this time. Other Charges and Services: Increase of $14,700 is attributed to a variety of items including waste disposal, dust control, training, pest control and the cleaning contract. Swecker asked if a cost savings could be realized if all building cleaning contracts were bid together. City Council Work Session Minutes September 10, 2012 are useajpr programs wnere: and punches.,heve a value o' je of $8,000:figtn hunch cards. Personnel: Increases are in COLA, step, and benefits, temporary intern position, overtime; and addition of a Streets Maintenance II position. There were some cost savings in the transition to a new City Engineer. Streets equipment: A new grader is being proposed as well as a small dump truck and plow to be used in neighborhoods with narrower streets. The figures do not reflect the trade -in of existing equipment which is estimated at $110,000. Parks: John Hennen stated that a 1% overall increa divisions of the Parks Dept. Major maintenance athletic organizations contributing to the costs =_ the valuable partnerships that have been form' The equipment replacement schedule calls for with 5910 mowers in 2013 and one each in 2014 impact to the tax levy if the purchase could be p stated that there would be no significant benefit plan helps keep the tax levy at a steady rate. Senior Center membership dues were preyiousl) but now go into the general fund, for expetdtture. The Heritage Center will be "cost neural" Wlth,n he has heard from seniors that th are ao being used. Patty Dexter stated ti I an anoys were not in favor but they 4'ce supp, rt cards. Staff will continue to ohitor� #ie punch alternatives. Monthly reven e results weft be f6r punch. cacti;" ply annual LaBeau newslet discuss current' open to Page 4 se, is ; peing proposed for the four m{rovmentstivill be completed with tieb corte%atied the Parks Dept. on wIt h t rganizations. t [a of two 580 -D mowers and 2015: LaEieau asked about the U dff,t it thefotlowing year. Feller arzd tfe proposed eurrt financing retaied?by the senior organization > such(as i%ewsletter mailings. T 11 o add i onal taxes. Little stated that >ed tqthe punch card system now is hs hown'thit�seniors originally ed "the" program by purchasing the ;ard program and consider possible utarded to Council. Staff noted that was previously not a fee, such as cents. The budget is premised on aggvted a w,t educe savings would be to not mail the monthly Ltt lave it ctronically. Patty Dexter stated that it has been to havo ,a joint ew €ter for the three Heritage Center groups. The me Time, -., e very popular with the seniors. Some members would be :eivingte #rrc all y but for many members that is not an option. Arts Centel' <. Personnel a Pend, res for 2013 are down $21,517. Commodities. Tie Giant Step Children's Theater collaboration has ended which reduces the budget for operating supplies. Tom Barnard stated that previously the City was the fiscal agent and revenues were shared with theater management ISD 194 Community Ed. Due to challenges with this system it was decided to continue the ISD 194 partnership through a rental arrangement with Community Education. Other Charges and services: Reflects cost of carpet replacement for the stairway and landing area in the lower level. City Council Work Session Minutes September 10, 2012 of the Liquor: Brenda Visnovec stated that sales are anticipated to increase to $15.1M in 2013. The liquor division is in the process of generating an updated business plan to review the Heritage Store's lease expiration in 2015 and explore future needs for the Kenrick store, which is near maximum efficiency for sales per square foot. Proposed expenditures include a larger cooler at the Kenrick store. This was encouraged by OSHA and could be eligible for a State safety grant. The roof at the Kenrick store also needs to be replaced next year. Personnel: Increase is due to extension of store hours., Other Charges and services: Renegotiated credit carq,,,, cessing fees has resulted in a savings of $50,000. C. 2013 Budget Options Mayor Bellows suggested postponing the 2013 departments have had the opportunity to discu Chamber budget presentation is scheduled for budget open house is scheduled for October 2. The Finance Committee has been Finance Department on public educ, D. Schedule of Fees Feller reviewed proposed animal control fees for pi( the actual cost of the Dr( Page 5 ©hiss discussion until all lefs >ilttith Gpuncil. The 21 ab the community and proposals to the ale offees. Swecker suggested the dangerous dogs, adequately reflect the revenues and expenditures to program. Ri�ft of permit fees proposed to increase as a result of a new permitting system imehaented by Ck�`,County which will include charges the cities. Public Safety charde,ere propo" increase from $60 to $70 per hour to adequately cover salad aR :benefit cats utility charges will increase to reflect higher electric costs for "street I Fina#�ce ts�ecommending some fees be eliminated such as recyclifjg which is��beirl done by the county and license fees for billboards, body piercintf amuse' u[G s, and tattoos. Feller reviewed other additions and deletion;, 3o the 2i3 schedule. A separate discussion will be held at the next work session regart in licensing of massage centers. Heritage Cegter;,rental fees were discussed. Staff is proposing three user fee categories: Senior Center members and /or non - profit organizations; Lakeville residents or businesses; or non - Lakeville residents or businesses. LaBeau did not support a discount for senior center members but felt every Lakeville resident should pay the same rate. After further discussion Council suggested eliminating the first tier of Senior Center member and non - profit fees and combining those categories with the second tier of Lakeville resident or business. The result would be that the first tier would be Senior Center members, Lakeville residents /businesses, or any non - profits, and the second tier would be non - Lakeville residents or businesses. City Council Work Session Minutes September 10, 2012 E. Debt Page 6 Swecker stated that she is not in support of adding any new debt. Bellows requested that debt discussions be held at the next budget work session. Little asked about the process for submitting a request for items which are not now included in the budget. Feller requested that any additional items be submitted as soon as possible to department directors or to the Finance Department. LaBeau asked for information on the funding for Highview Avenue and 1go Street improvements. 5. Adjourn Meeting adjourned at 8:20 p.m. Respectfully submitted, Judi Hawkins, Deputy City Clerk Mark Bellows, Mayor