Loading...
HomeMy WebLinkAbout09-10-12 WSCITY 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 Swecker, to adjourn to a closed meeting to consider a Letter of Intent to purchase property at 20732 Holt Avenue. Community and Economic Development Director Dave Olson provided an overview of the terms and conditions of a Letter of Intent submitted to the City of Lakeville. Council discussed issues to be addressed and directed staff to work with the City Attorney and the purchaser to draft a purchase agreement for Council consideration. The Work Session resumed. Staff Present: Steve Mielke, City Administrator; Dennis Feller, Finance Director; Chris Petree, Public Works Director; Brenda Visnovec, Liquor Operations Manager; John Hennen, Interim Parks and Recreation Director; Tom Vonhof, Police Chief; Mike Meyer, Fire Chief; Police Sgt. John Kornmann; Tom Nesseth and Julie Werner, Senior Accountants; and Judi Hawkins, Deputy Clerk 4. Continue 2013 -04 Budget Discussions A. Estimated Property Tax Impacts Dennis Feller stated that the preliminary 2013 tax levy which was adopted on September 4, 2012 reflects a 2.7% increase compared to 2012. This will result in a $3 increase on a home valued at $214,000 (median value). A commercial - industrial parcel valued at $1 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 " 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 narrative from each department for the highlights of any significant budget changes. Each department has provided information on their respective budgets. Following the presentations Council can refer any questions to the department directors or Finance Department. Police: Chief Tom Vonhof presented the Police Department budget: At 76 %, Personnel Services is by far the largest portion of the police budget and accounts for the majority of the budget increase due to COLA, step salary increases, overtime, and employee benefit costs. There are no requests for additional personnel in the budget. A reduction has been reflected in workers compensation and liability insurance due to favorable annual OSHA inspections. Commodities — operating supplies include ammunitions, safety supplies and other equipment. Motor fuels are anticipated to be reduced by using shorter idle times and with the purchase of more fuel - efficient vehicles. Clothing for new Reserve officers is also included in this budget. Other Charges and Services — includes dispatching services at DCC, attorney fees, and utilities and contract cleaning at the Police Station. Little asked about the line item for cleaning the PD. Swecker asked about the potential increase in medical calls to senior housing facilities as two additional facilities with nearly 200 units are scheduled to open. Vonhof stated that this will increase first responder calls. Capital Outlay — Vonhof reviewed major purchases in the 2013 equipment fund budget. The budget also includes updated technology to provide greater capability to investigate Internet crimes. Little asked if there was an opportunity for Lakeville to assist other communities with this technology. Swecker asked at what point police vehicles are replaced with new models. Sgt. Kornmann stated that 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 equipment is used by both the firefighters and the police. Little asked if an incentive for gym membership had been considered rather than purchase of exercise equipment. Mielke stated that an analysis done a few years ago found that owning the equipment was more cost effective. He added that Lifetime Fitness is donating refurbished exercise equipment for Heritage Center. An interactive white board system is also being proposed for training purposes as well as for use at public events. Feller will check into whether the Communication Fund could provide the white board. Public Works — Engineering: Chris Petree reviewed expenditures related to Engineering and Streets. Commodities: No change is proposed for 2013. Operating supplies make up the largest part of this budget. Other Charges and Services: A $14,000 increase includes engineering fees for traffic studies, bridge inspections, etc. and other requirements. There is a substantial increase in schools and conferences to maintain staffs professional certifications and licenses. LaBeau asked about the allocation of funds for staff to attend out of town conferences. Petree stated that some professional development opportunities are out of the metro area which contributes to a higher overall cost. Equipment items include a new plotter /printer, a standing work station, and replacement of the 2002 Suburban. Public Works — Streets: Commodities: There is an overall budget decrease, mainly due to the current stockpile of deicer chemicals left over from last year. Budget increases reflect higher prices for lubricants, signs, operating supplies for vehicle maintenance, and asphalt for patching. LaBeau 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 Page 4 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 increase is being proposed for the four divisions of the Parks Dept. Major maintenance improvements will be completed with athletic organizations contributing to the costs. Rieb commended the Parks Dept. on the valuable partnerships that have been formed with these organizations. The equipment replacement schedule calls for replacement of two 580 -D mowers with 5910 mowers in 2013 and one each in 2014 and 2015. LaBeau asked about the impact to the tax levy if the purchase could be put off until the following year. Feller stated that there would be no significant benefit and the proposed current financing plan helps keep the tax levy at a steady rate. Senior Center membership dues were previously retained by the senior organization but now go into the general fund, for expenditures such as newsletter mailings. The Heritage Center will be "cost neutral" with no additional taxes. Little stated that he has heard from seniors that they are opposed to the punch card system now being used. Patty Dexter stated that an analysis has shown that seniors originally were not in favor but they have since supported the program by purchasing the cards. Staff will continue to monitor the punch card program and consider possible alternatives. Monthly revenue results will be forwarded to Council. Staff noted that punch cards are used for programs where there was previously not a fee, such as card playing, and punches have a value of 50 cents. The budget is premised on annual revenue of $8,000 from punch cards. LaBeau suggested a way to reduce savings would be to not mail the monthly newsletter but have it available electronically. Patty Dexter stated that it has been discussed to have a joint newsletter for the three Heritage Center groups. The current Prime Time News is very popular with the seniors. Some members would be open to receiving it electronically but for many members that is not an option. Arts Center: Personnel expenditures for 2013 are down $21,517. Commodities: The 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 Page 5 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 card processing fees has resulted in a savings of $50,000. C. 2013 Budget Options Mayor Bellows suggested postponing the 2013 Budget Options discussion until all departments have had the opportunity to discuss their budgets with Council. The Chamber budget presentation is scheduled for September 21 and the community budget open house is scheduled for October 2. The Finance Committee has been asked to provide ideas and proposals to the Finance Department on public education pieces of the budget. D. Schedule of Fees Feller reviewed proposed increases in the schedule of fees. Swecker suggested the animal control fees for pickup and boarding, and dangerous dogs, adequately reflect the actual cost of the program. Staff will review the revenues and expenditures to determine an appropriate fee for a self- sustaining program. Right of way permit fees are proposed to increase as a result of a new permitting system implemented by Dakota County which will include charges the cities. Public Safety charges are proposed to increase from $60 to $70 per hour to adequately cover salary and benefit costs. Utility charges will increase to reflect higher electric costs for street lights. Finance is recommending some fees be eliminated such as recycling which is now being done by the county and license fees for billboards, body piercing, amusement devices, and tattoos. Feller reviewed other additions and deletions to the 2013 Fee Schedule. A separate discussion will be held at the next work session regarding licensing of massage centers. Heritage Center 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 190 Street improvements. 5. Adjourn Meeting adjourned at 8:20 p.m. Respectfully submitted, 4u Oi Hawkins, Deputy City Clerk `/ ffL 64 = Mark Bellows, Mayor