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HomeMy WebLinkAbout11-12-13 WSCITY OF LAKEVILLE CITY COUNCIL WORK SESSION MINUTES November 12, 2013 Mayor Little called the meeting to order at 6:30 p.m. in the Marion Conference Room at City Hall. Council Members Present: Swecker, LaBeau, Anderson and Mayor Little; Council Member Davis participated via videoconference Staff Present: Steve Mielke, City Administrator; Dennis Feller, Finance Director; John Kornmann, Interim Police Chief; Chris Petree, Public Works Director; Daryl Morey, Planning Director; Dave Olson, Community and Economic Development Director; Gene Abbott, Building Official; Brett Altergott, Parks and Recreation Director; Julie Werner; Senior Accountant; Tom Nesseth, Senior Accountant; Judi Hawkins, Deputy City Clerk 2. Citizen Comments There were no citizen comments. 3. Budget Discussion Topics a. Initiatives related to new employee positions. i. Code Enforcement and Building Inspections. LaBeau is concerned that a slowdown in building will diminish the need for this position. Morey stated that there are currently 617 single - family approved platted lots available for building permits. Mielke clarified that this is a part time code enforcer and not a building inspector. Abbott stated that duties of this position including miscellaneous permit reviews for fences, sheds, pools, etc. are currently being done by full -time inspectors and it is becoming more difficult to maintain expected service levels. Anderson asked if the new iPads provide greater inspector efficiency. Olson said that the iPads allow inspectors to perform about two more inspections in a day. Feller stated that the savings in builder inspector overtime will far outweigh the cost of the part time position. ii. Street Reconstruction Engineering: This engineering technician position will be the contact person and field inspector on site for the City's street reconstruction projects, as well as work during the winter months to design City projects and develop plans and specifications. Funding is through the Street Reconstruction program. The position would replace one on -site project observer, which is now a consultant. Petree believes that better, more consistent customer service is achieved by having the lead person be a City employee. City Council Work Session November 12, 2013 Page -2- iii. Fleet Services. Anderson recognizes that this position would be self - supporting because of the increased efficiencies with handling of parts, etc., but asked when there would be an offset in the budget. Petree stated that other communities have reported savings in fuel costs, inventory control, etc. and a good return on the investment of having a fleet manager on staff. Petree will provide goals, objectives, and estimated cost saving benchmarks for this position. Swecker believes this is an essential position that will be a benefit for the city. iv. Forestry Program. The position is proposed to be funded through Environmental Services with surface water management fees. Staff recommends Council remove the position from the budget at this time and bring it back for discussion in January. Little believes the City should be prepared to respond to an Emerald Ash Borer (EAB) outbreak and possibly work cooperatively with other cities. Anderson suggested using an intern as a forester but the position is a low priority for him. LaBeau asked if the State and County take responsibility for the trees on their right of ways. Petree stated that Dakota County is currently working on a preparedness plan for EAB; a forester could assist in writing and submitting grant applications to control EAB. v. Police Investigations and Cyber Crime: Currently only one detective is fully trained in working with forensic computer examinations and much of his time is spent on those duties. The requested position would assist in the investigative area and is budgeted to begin August 1, 2014. Kornmann stated that even though the crime rate is down, the number of calls is up. There are also plans to train an additional investigator in tech forensics. Council agreed in the importance of filling this position. b. Council Salaries and Miscellaneous Expenses. Feller stated that this is presented annually for Council consideration. Council did not wish to pursue any changes. 4. Discussion Topics - General Government Preliminary Budget and Tax Levy - Proposed Revisions: The preliminary tax levy is $22.9M, or a 3.9% increase. Of that 3.9 %, 2.2% will be paid for by new growth, especially residential, and 1.2% represents the street reconstruction program. A list of potential cuts in the amount of $122,000 was included, which, if all of the cuts were made, would reduce the levy to a 3.4% increase. Mielke clarified that the expenditure reductions are parts of the `adds' that were previously included. These are proposed reductions in the `adds' over the 2013 budget that were adopted in the preliminary levy but not cuts to the existing budget. Feller discussed the following tax levy revisions for Council consideration. Reductions can be realized in the following areas: • Contingency from health insurance premium savings; City Council Work Session November 12, 2013 Page -3- • Police Department Lexipol risk management program being removed at the recommendation of the Interim Police Chief; • Liability insurance premiums - staff recommends that LMC insurance rebates be used to defer higher anticipated premiums; • Heritage Center capital outlay; • Heritage Center operations; • Street Dept. roundabout landscaping; and • Parks maintenance. LaBeau asked if there were any grant applications being submitted for Tree Trust or other agencies. Altergott stated that he is working on grants. Anderson requested clarification on the accelerated street reconstruction expenses. Feller stated that the accelerated street reconstruction program adds more new debt each year, which will be leveraged over a longer period of time and will not raise the levy any more than a regular street reconstruction program would. The cost of the 2013 street reconstruction program is $253,000 and raises the 2013 tax levy by 1.2 %. LaBeau asked how revenues from new growth are absorbed into the budget. Mielke stated that growth increases revenues from building permits and also increases the long -term tax base. Feller stated that with growth there are other increased costs for services such as additional street plowing, public safety calls, and infrastructure. Council members believe it is most important to continue to deliver services to residents and businesses in the most efficient and cost effective manner possible. The Communications Fund consists of revenues from regular Cable TV franchise fees (not the EG fees). Staff is recommending a one -time transfer of $55,000 to pay for direct expenses of the 2014 General Election, such as election judges. At the last work session, Council asked Parks staff to provide information on the ice rinks. Altergott stated that a considerable amount of work and funds will need to be expended to bring the Highview Heights rink up to acceptable standards for several existing issues. This is one of the least used rinks, possibly due to the sub -par conditions. Staff is recommending working with the Parks, Recreation and Natural Resources Committee to review the rink system and defer major maintenance at Highview Heights until this is completed. Little stated that the Council had created a fair policy and provided neighborhood rinks accordingly. Anderson believes the cost to improve and maintain the HH rink should be compared to what the rink provides and the low attendance. Mielke stated that part of the review process by the Parks Committee could include public comments. Altergott stated that Rolling Oaks and Quail Meadows residents have begun asking to have their rinks reopened. New developments City Council Work Session November 12, 2013 Page -4- need to be considered also. Little would like to keep HH open to maintain consistency; he doesn't believe the rink system needs to be reviewed since it was just done last year. After further discussion Council members asked staff to work with the Parks, Recreation and Natural Resources Committee on an analysis of the ice rinks. Revenue Assumptions - related to growth: Staff provided Council with projections of fund balance increases due to development and building permit revenues being higher than anticipated. Based on the plats which have been submitted and the inventory of available lots, staff believes 365 dwelling units is a conservative estimate for 2014. Morey provided a map illustrating current residential development projects as of October 31st, and 2014pending subdivisions. There are currently 617 SF lots available in the system, with an additional 946 lots in staff review. Morey stated that many of these are multi -phase plats and will not all be available at once. Development activity is taking place in all three school districts. 5. Discussion Topics - Capital Improvement Plan (2014 -2018) Feller highlighted items in the Transportation Plan. Figures have changed due to revised estimates provided by the County. A resolution supporting the County's CIP will be presented to Council for their consideration at their next regular meeting. Utility System: The Comprehensive Water Plan Update and the WTF expansion study have been advanced one year due to growth and coordination with other projects in the CIP. The watermain replacement program was increased as a result of the outcome of the feasibility report in the 2014 street improvement project. Other projects will be discussed at the November 19 work session. 6. Information Distribution Parks: Trail Maintenance - Altergott stated that improvements to King Park parking lot and playground are especially important for the Miracle Field users. LBA has offered to contribute funds for lighting at the facility. Irrigation and drain -tile will also be needed in the future. Capital Projects Funds Primary funding sources are the building fund balances for the next five years, liquor profits, and utility user fees. Anderson asked if Council could discuss total compensation and contingency at the next meeting. Mielke stated that staff will prepare materials for Council at a future meeting before the budget is adopted. Anderson would also like to compare how neighboring communities set their levies since some cities are lower. Mielke stated that a range of years should be looked at; Lakeville's levy was reduced for three consecutive years when the others were raised. City Council Work Session November 12, 2013 Page -5- Feller stated that at the November 19 meeting, Council will review fee structures, the liquor budget and utility fund. Staff will address any questions Council has at that time. The final budget discussions can be held at the November 25 work session, if necessary. Little asked if it was Council's consensus to accept reductions down to a 3.4% tax levy, with the opportunity to discuss additional reductions. LaBeau asked why potential excess revenues cannot be utilized in replacement of the tax levy. Feller stated that doing that would be an option, however, would jeopardize the goal of maintaining a consistent levy from year to year and could cause the 2015 levy to spike. 7. Adjourn Mayor Little adjourned the meeting at 9:05 p.m. Respectfully submitted, J Hawkins, Deputy Clerk :�� Z - Matt Tittle, Mayor