HomeMy WebLinkAbout09-13-00CITY OF LAKEVILLE SPECIAL COUNCIL MEETING
SEPTEMBER 13, 2000
Mayor Zaun called the meeting to order at 5:30 p.m.
Roll call was taken. Present: Council Members Johnson, Sindt,
Mulvihill, Luick and Mayor Zaun.
Also present: B. Erickson, City Administrator; A. Grussing,
Community & Economic Development Director; D. Feller, Finance
Director; S. Michaud, Parks & Recreation Director; D. Martens, Police
Chief; D. Volk, Director of Operations & Maintenance; B. Kempa,
Senior Accountant; B. Visnovec, Director of Liquor Operations;
J. Hawkins, Deputy Clerk.
Mayor Zaun stated that the purpose of this special meeting is to
receive the preliminary budget for 2001/2002, per state statute
requirements and to set Truth in Taxation public hearing dates.
City Administrator Bob Erickson presented the City of Lakeville
proposed 2001/2002 ,budget. (See attached budget message dated
• September 8, 2000) Mr. Erickson highlighted various aspects of the
budget and stated that with the lifting of the levy limits, the City
Council is being given the opportunity to eliminate special
assessments for seal coating, but to instead continue this pavement
management program with the use of ad valorem taxes.
Following his presentation, Mr. Erickson thanked the Finance
Department, especially Senior Accountants Brian Kempa and David
Lang for their hard work in the preparation of this budget. As a
special thanks to the City Council this budget is dedicated to Mayor
Zaun and Council Member Sindt, who have reviewed budgets for 26
and 20 years, respectively.
Finance Director Dennis Feller then provided a detailed overview of the
proposed 2000/2001 budget via video. (See attached written narrative
of Mr. Feller's presentation.)
Mayor Zaun asked Mr. Feller why it is more viable to use ad valorem
taxes for seal coating rather than special assessments. Mr. Feller
stated that property owners realize a savings since the payment is tax
deductible on their income tax returns, whereas a special assessment
is not deductible. In addition, by eliminating special assessments, the
rproperty owners would not have to pay for administrative costs such
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City of Lakeville Special Council Meeting
September 13, 2000
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as legal notices, postage and the County's special assessment fee.
Following the adoption of the preliminary budget, the proposed tax
levy can be reduced, but not increased.
00.151 Motion was made by Johnson, seconded by Mulvihill to approve the
following preliminary budget resolutions:
■ Resolution No. 00-205 adopting the preliminary 2000 General Fund
Budget.
■ Resolution No. 00-206 adopting the preliminary 2000 Cable TV
Fund Budget.
■ Resolution No. 00-207 adopting the preliminary 2000
Environmental Resolution No. 00-205 adopting the preliminary
2000 Recycling Fund Budget.
• Resolution No. 00-208 adopting the preliminary 2000 Drug
Enforcement Fund Bud et
g
■ Resolution No. 00-209 adopting the preliminary 2000 Employee
Benefit Fund Budget.
■ Resolution No. 00-210 adopting the preliminary 2000 GIS Fund
Budget.
■ Resolution No. 00-211 adopting the preliminary 2000 Surface
Water Management utility Fund Budget.
■ Resolution No. 00-212 adopting the preliminary 2000 Oak Wilt
Suppression Grant Fund Budget.
■ Resolution No. 00-213 adopting the preliminary 2000 E-911 Fund
Budget.
■ Resolution No. 00-214 adopting the preliminary 2000 Economic
Development Revolving Loan Fund Budget.
■ Resolution No. 00-215 adopting the preliminary 2000 Downtown
Special Service District Fund Budget.
■ Resolution No. 00-216 adopting the preliminary 2000 Municipal
Reserves Fund Budget.
■ Resolution No. 00-217 adopting the preliminary 2000 Equipment
Fund Budget.
■ Resolution No. 00-218 adopting the preliminary 2000 Building
Fund Budget.
■ Resolution No. 00-219 adopting the preliminary 2000 Park
Development Fund Budget.
■ Resolution No. 00-220 adopting the preliminary 2000 Liquor Fund
Budget.
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City of Lakeville Special Council Meeting
September 13, 2000
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■ Resolution No. 00-221 adopting the preliminary 2000 Water
Operating Fund Budget.
■ Resolution No. 00-222 adopting the preliminary 2000 Sanitary
Sewer Operating Fund Budget.
Roll call was taken on the motion: Ayes: Zaun, Sindt, Mulvihill,
Luick, Johnson
00.152 Motion was made by Luick, seconded by Johnson to approve
Resolution No. 00-223 to approve the preliminary 2001 tax levy,
including the seal coat cost, in the amount of $7,901,847.
Roll call was taken on the motion: Ayes: Sindt, Mulvihill, Luick,
Johnson, Zaun
00.153 Motion was made by Mulvihill, seconded by Sindt to approve
Resolution No. 00-224 setting the budget (Truth in Taxation) public
hearing date of December 11, 2000. Subsequent meetings will be
determined at an upcoming work session.
Roll call was taken on the motion: Ayes: Mulvihill, Luick, Johnson,
Zaun, Sindt
City Administrator Bob Erickson suggested that City Council members
look at their calendars to determine available dates for a work session,
which will be set at the City Council meeting of September 18, 2000.
Mayor Zaun adjourned the meeting at 6:40 PM.
Respectfully submitted,
J d' h R. Hawkins, Deputy Clerk
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BUDGET MESSAGE
TO: Mayor Duane Zaun
Council Member Bob Johnson
Council Member David Luick
Council Member Lynette Mulvihill
Council Member Betty Sindt
FROM: RobertA. Erickson, City Administrator
DATE: September S, 2000
The proposed 2001-2002 budget was prepared to ensure that the service delivery
expectations of residents and businesses are achieved in order to maintain the excellent
quality of life the community enjoys, despite inequitable distribution of local
government aids by the State Legislature. We are pleased to recommend a budget that
should enable Lakeville—for the ninth straight year—to have the lowest tax capacity
rate of any City over 5,000 population in Dakota County. The predictability of
Lakeville's tax levy is due primarily to taking a multi-year perspective in
planning and budgeting resources, utilizing the Capital Improvement Plan for
2000-2004 and the Report and Recommendations of the 1998 Strategic Growth
Management Task Force, along with the vision and goals developed by the City
Council at its annual retreat.
In addition, Moody's Investors Services issued a bond rating upgrade from A3 to A2.
As an integral part of the rating, Moody's cited the City's
• Sound financial position evidenced by historically ample reserves.
• Favorable location near Twin Cities experiencing rapid growth, land available
for further development.
• High debt burden primarily due to overlapping school districts.
Moody's is the preeminent municipal credit rating agency in the U.S., and its statement
that the City is expected to maintain its sound financial position is based in large part on
the success of our annual budget preparation, deliberation and implementation.
Consistent with Moody's statements, the City continues to maintain a strong tax base as
the result of continued commercial/industrial development, the increasing value of new
residential housing, and the continued strength of real estate market valuations. Even
though the net tax levy is proposed to increase 20.8% o, the estimated net tax capacity value
(tax base) increased 17.5%, which results in an approximate 3.1 % increase in the tax
capacity rate (which is below the equivalent of implicit price indicators—the inflation index
for government, 4.1 %).
This is achievable despite the fact that the Legislature's allocation of state aids for
property tax relief clearly continues to favor older out -state and core cities, ignoring the
basic service needs of growth cities. As a result, 3.4% o of the increase in the City's share
of property taxes ($221,219) is directly attributable to the Legislature's long-standing
inequitable allocation of state aids for property tax relief. The $221,219 lack of state aid is
equivalent to $17 per Lakeville household.
The 3.1 % increase in the tax capacity rate allows for the elimination of special
assessments for sealcoating. This is made possible in part due to the removal of levy
limits. Lakeville residents have expressed a strong desire to see this additional charge
eliminated.
WA
The preliminary budget addresses:
• Rising energy costs for gasoline and natural gas
40% city-wide. HVAC system retrofits.
• Zip code consolidation effort,part of our Comprehensive Communications
Plan.
Q Received notification from the MN American Planning Association
that our entry, _titled "Communications Strategy for the Comprehensive Plan,
was an award winner in the Public Education category.
• Ongoing implementation of the 2000 Economic Development Strategic Plan
• Mobile data computers for police officers
0 Mobile data terminals are just that—terminals. They receive and transmit
information; they cannot process or compute. They can send a text message to
another user on the system. Mobile data computers (ADC's) are police jargon for
a laptop computer that has been strapped into a squad car As a computer, it can
process and analyze information, not just relay it. It has the capacity of word
iprocessing, database management, electronic messaging, internet access,
receiving and sending digital photos and, in the future, the electronic
transmission of fingerprints directly to the FBI. It can send a text message to
anyone.with an open architecture system. The transmission of data, in "clustered
data packets " occurs at speeds hundreds of times faster than MDT& Finally, the
MDC 's will interface with the CAD system, allowing information received by
dispatch and/or reception to go directly to the squads and also to populate the
reports with the same information. The time needed for a DWI arrest, with 14+
separate reports that now take two hours to complete, should be cut in half.
0 COPS grant for technology, $110,000.
J' D.A.R.E. program, District 194. Interim funding.
0 The Lakeville Police Department has the highest clearance rate for part I
and II crimes (serious personal and property crimes such as assault, robbery,
theft, etc) for the seventh consecutive year.
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Architectural design study for Fire Station 4; additional personnel
(1 S new volunteers in 2001, 10 in 2002) and equipment
for Fire Station 4 (replace 1979 van)
Q City has set aside landadjacentto the Water Treatment Facility.
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ALF Ambulance, addition of third unit
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Recycling—adding electronics disposal program
❑ Included as part of the annual Earth Day/Community Cleanup Day, with
collection of electronics and household hazardous waste along with roadside
cleanup. Collecting household electronics will remove lead from waste stream.
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Feasibility, study for anew Public Works facility
❑ We recommend proceeding with the study in lieu of making interior and
exterior repairs with an estimate cost of $150,000.
The Street Dept. building, constructed in 1973, is valued at $1.1-$1.5 million.
The Park Maintenance building, constructed in 1976, is valued at $750,000
to $1.1 million.
Operating efficiencies would be realized by combining the two departments
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under one roof. Sale of the existing buildings to private business will put them
back on the tax rolls. We need to find a site location for this specialized
operation, which includes outdoor storage.
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Snowplow equipment policy implementation
QA comparative analysis and plan for snowplowing equipment, prepared by
Don Volk and Neil Normandin, identifies alternatives through 2006-2007.
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Park design/acquisition/development
Q Lake Valla and Valley Lake Park
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Arts Center, grand opening summer 2001
ClNon profit corporation.
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Continuation of aggressive lake, stream and trout stream management programs
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Water Treatment Facility expansion and addition of two wells
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Closure of Liquor Store 2
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• Remodeling/expansion of City Hall
❑ Specialprojects-
0 Parking lot at Orchard Lake Park
Q Wetland grant Metropolitan Council grant of $20,000 will be
applied to estimated cost of $90,000 for a Wetland Management Plan,
which includes a wetland inventory for each wetland in the City. Balance
will be funded by the Storm Sewer Fund.
❑ Transportation projects—Dakota County CIP, 2001-2005; TIF
❑ Technology --Meals on Wheels program
• Addition of five new positions
Community Public Safety Officer
Development/Design Engineer
Street Maintenance II
Utility Maintenance II
Arts Center Secretary/Receptionist (part time)
In 2001, the City of Lakeville will have 3.4 employees per thousand population, which is based on
152.4 FTE/44,632 population. This ratio ranks among the lowest in the state.
The budget as presented does not increase charges for water, sanitary sewer or surface water
management in 2001. Incidentally, Lakeville has the lowest water rates in Dakota County for any
City that provides treated water.
Recent increases in electricity rates will require a 4.6% increase in street light charges to
residential customers, from $4.90/quarter to $5.05/quarter. Street light rates were previously
increased in February 1999.
The final budget recommendations were reviewed with each department director and/or supervisor.
We are providing you with a copy of the questions and answers, along with the adjustments
addressed during the budget review process. Also included are 37 attachments that lend support to
many of the complex issues that surfaced during this extensive critique.
In closing, Dennis Feller and I want to thank SeniorAccountants Brian Kempa and David Lang for
their in-depth analysis of each departmental budget.
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Dedication
The 2001-2002 budget is dedicated to Mayor Zaun and Council Member Sindt in
recognition of their long-standing (Mayor Zaun, 26 years; Council Member Sindt, 20
years) commitment to the fiscal well-being of the Lakeville community. Mayor Zaun's
demonstrated comparative analysis of fiscal factors and Council Member Sindt's
establishment of the two-year budget process (1988) have significantly aided in
addressing intermediate and long range issues.
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