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.
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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;
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• 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
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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.
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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