HomeMy WebLinkAbout09-13-95 CITY OF LAKEVILLE
SPECIAL COUNCIL MEETING
SEPTEMBER 13, 1995
The meeting was called to order at 7:00 p.m. by Mayor Zaun. Roll call was taken. Present:
Councilmembers Johnson, Sindt, Mulvihill, Harvey and Mayor Zaun. Also present: R.
Erickson, City Administrator; D. Feller, Finance Director; B. Kempa, Senior Accountant; C.
Friedges, City Clerk.
Mr. Erickson requested an executive session of the City Council following adjournment of the
special Council meeting to discuss the status of pending litigation with the City Attorney.
Mr. Erickson presented the 1996!97 preliminary budget message entitled, "Within Our Means--
. Making Good Choices", as follows.
To provide high performance government in Lakeville, we need to reflect how we can continue
to do more with less. We must assure our residents that essential services will not be reduced
and we must create areas where businesses will want to locate and neighborhoods where
people will want to raise their families. Basically, as a City, we must continue to live "within .our
means--making good choices."
Historically, the City of Lakeville has determined the services that need to be provided by
focusing budgetary decisions on customer service, privatization, cost containment and
technology. One of the best ways for governments to reduce costs is to adopt new
technologies to increase productivity. The 1996-97 budget documents are founded on the
City's long-standing fiscal practices, with an emphasis on expanding the use of technology to
benefit our residents. Here, then, are some of the choices we recommend and the basis for
these recommendations.
CUSTOMER SERVICE
These choices are validated by pertormance of a community survey every other year; our
services can then be modified using direct input from our customers. In the 1995 survey, a
solid seventy-four percent rated the general value of City services as either excellent or good.
Budgetary responses related to the 1995 community survey follow:
• Library-Seventy-six percent of households indicated they would be very likely or
somewhat likely to use a library if such a facility were available in Lakeville. The 1996
budget provides fora $325,000 transfer from the Liquor Fund to the Building Fund for
library site land acquisition. The land would be donated to Dakota County, which would
construct and operate the facility..
• Retail development--Eighty-four percent of respondents. said they would definitely or
maybe shop in the downtown area if it included major retailers, discount stores, department
stores and a library. This response led the City to explore the possibility of creating a
"Town Square"--including the library, municipal campus and other amenities, and
connecting this area with the historic downtown. A grand boulevard connection would
CITY OF LAKEVILLE SPECIAL COUNCIL MEETING
SEPTEMBER 13, 1995
PAGE 2
feature nostalgic street lighting, banners and floral baskets. New lighting is proposed as
part of the downtown storm sewer and street reconstruction project scheduled for 1996.
• Transit--75% of Lakeville residents were unwilling to support property tax increases for
public transportation purposes. In response, no transit appropriations are included in the
budget.
• Recreation--The majority of residents live in two-wage earner families, many of whom
work daytime hours and do not return home until after 5 p.m. To better meet their needs,
the budget includes the newly created position of Assistant Recreation Supervisor. This
employee would work evening hours in order to better serve the adult population. In
addition, the Manufactured Home Park Recreation Program will be offered in evening
hours to better serve families, most of whom cannot participate in daytime programs.
• Recreation activity brochure --Residents indicated they obtain most of their
information about recreation activities from newspapers, even though a quarterly brochure
delivered either by mail or a delivery service is the City's traditional method of
disseminating information. On a trial basis, the winter quarter brochure is proposed to be
published as an insert in the Life & Times.
• Community clean-up--.Resident participation in the biennial. Community Clean-up Day
is high. They indicated they would continue to participate even if a nominal charge for
disposal is imposed. Such costs were previously covered by ad valorem taxes. The
proposed budget includes a $1.00 disposal fee for tires and a $2.00 disposal fee for
appliances.
• Land use and zoning--Some concern about the openness of land use decision-making
resulted in the scheduling of community forums in September and October 1995. Input
from these forums and funding in the 1996-97 budget will. assist the City in updating its
Comprehensive Plan.
• Motor Vehicle Licensing--Customer service in the motor vehicle licensing area is
expected to improve, beginning in 1996. When the current lease for downtown space
expires in 1997, the licensing office will be relocated to City Halt where residents will find
adequate parking and be able to conduct other City businesses when they stop in to renew
a license.
• Public Safety--96% of residents #eel safe in their neighborhoods. The proposed
budget provides for additional personnel, equipment and programming to continue and
enhance the community policing philosophy.
PRIVATIZATION (Outsourcina)
The City of Lakeville has played a leadership .role in the privatization, or outsourcing, of many
of its services. Currentlythe City contracts for landscape maintenance, janitoriatservices,
• sealcaating, street sweeping, street striping, cracksealing, snowplowing of gravel roads and
CITY OF LAKEVILLE SPECIAL COUNCIL MEETING
SEPTEMBER 13, 1995
PAGE 3
meter replacement. During the coming year, the City will consider expanding the privatization
program in the following areas:
• Vehicle. maintenance
• C?ptical scanning
• Sanding rural graveF roads
• Meter reading
• Tree trimming
At this point in the presentation, Mr. Erickson introduced Dennis Feller, Finance Director, who
provided an overview on property tax levy:
The City has, for many years, had the lowest tax capacity rate of any city in Dakota County.
According to the Minnesota Taxpayers Association, Lakeville ranks in the bottom 25% quartile
in taxes. One method of controlling expenditures is with personnel costs. Lakeville has
historically had one of the lowest number of employees per capita in the state. The number of
employees per capita decreased to 3.2 in 1994 and will remain at that rate through 1.997.
In the past, the City has relied on State Aids for property tax relief as a major revenue source.
The State, however, has changed the allocation formula and reduced the funding. The
methodology for distribution of State Aids to all cities for property tax relief is no longer
accomplishing its original purpose. The inequitable distribution of state aids has favored out-
state cities. The State Aids were intended to relieve the burden to property taxpayers;
however, the system has been modified over the years so that growth cities receive only token
increases. The inevitable net result for many cities is higher property taxes and/or reductions
in service levels.
STATE-AID FOR .PROPERTY TAX RELIEF 1996 1995
DIFFERENCE
Homestead/Agricultural Aid (HACA) $1,699,614 $1,746,247 $(46,633)
Local Government Aid (LGA) 484.373 481.955 2.418
Total $2,.183,987 $2,228,202 $(44,215)
On a per capita basis, the state aids for property tax relief have decreased $13 per capita from
$76 in 1993 to $63 in 1996.
In response to the actions taken by the legislature, the proposed budget includes a tax levy of
$5,243,805 which includes the $13 per capita increase for the loss of revenues from State
Aids for property tax relief.
The tax levy is composed of a $4,165,879 million levy for operations $650 thousand for voter
approved debt and $427 thousand for improved project such as CR 46.
•
CITY OF LAKEVILLE SPECIAL COUNCIL MEETING
SEPTEMBER 13, 1995
PAGE 4
PROPOSED
1996 1995
General Fund $3,823,466 $3,198,075
Recycling Fund 5,275 8,706
Drug enforcement 51,498 49,000
Equipment/CI Fund 285,640 281.125
Operations $4,165,879 $3,536,906
Voter approved 650,123 655,215
Other 427.803 450,226
Total $5.243.805 $4.642.347
The City Council has focused in years on a policy of reducing the tax levy for debt. The final
tax levy for the police station will be made in 1997. The last levy for Certificates of
Indebtedness will be made in 1998. For these reasons, the future looks bright for Lakeville's
future tax levies.
Based on information furnished by the Dakota County AuditorlTreasurer's Office and Dakota
County Assessor's Office, the tax capacity rate will decrease .3% as follows:
CALCULATION OF NET TAX CAPACITY
1996 1995
ESTIMATED ACTUAL
Tax capacity value 25,005,336 22,381,858
Tax increment (1,098,321) (1,288,809)
Fiscal disparities contribution (2,602,974) 12,459,350)
Net tax capacity 21.304.041 18.633.699
i
CITY OF LAKEVILLE SPECIAL COUNCIL MEETING
SEPTEMBER 13, 1995
PAGE 5
CALCULATING THE TAX CAPACITY RATE
1996 1995
Tax levy 4,959,375 4,345,128
Fiscal disparities (681,914) (591,021)
Net tax levy 4,277,461 3,754,107
Net tax capacity 21,304,041 18,633,699
Tax capacity rate 0.20078 0.20147
(DECREASE) -0.3%
MARKET VALUE 1,362,193,042 1,228,227,100
Tax levy for 1994 Park bonds 284,430 283,351
Tax rate based on market value 0.0002088 0.0002307
The decrease in the City's tax capacity rate is due to:
• Fiscal disparities contributions
• Expiration of the Fleet Farm TIF district
• Value of new residential construction
The taxes on a $140,000 house will decrease approximately $5 .per year.
The 1996 tax capacity rate is subject to changes in the Assessor's final estimated market
value. Taxpayers may experience a change in actual property tax payments that differs from
the increase in tax capacity rate, depending on market value, property classification or property
classification rates for their specific parcels.
If the City Council adopts the tax levy as proposed, taxpayers will receive parcel-specific
natives in November informing them of the estimated taxes and of the December Truth in
Taxation hearing. The Council has the ability to adopt a final tax levy in Decemberthat is
equal to or less than the preliminary tax levy approved in September. It may not, however,
adopt a final tax levy that is greater than the preliminary tax levy.
Mr. 'Feller then turned the presentation back. to Mr. Erickson.
COST CONTAINMENT
The City has along-standing policy of .maintaining a low tax rate; Lakeville currently has the
lowest tax capacity rate in Dakota county. The per capita tax capacity rate has not been
increased for the past five years with the exception of the 1994 Park Band Referendum.
CITY OF LAKEVILLE SPECIAL COUNCIL MEETING
SEPTEMBER 13, 1995
PAGE 6
The State provides property tax relief in the form of Local Government Aid (LGA) and the
Homestead and Agricultural Credit (HACA). Through a combination of appropriation cutbacks
and changes in the allocation formula, the State has steadily decreased the per capita aids.
These aids have been reduced by $13 per capita from $76 in 1993 to $63 in 1996. The
proposed 1995 tax levy incorporates the $13 loss into the ad valorem levy.
Even though the per capita tax levy will increase, the tax capacity rate will decrease by .3%,
resulting in a reduction in°property taxes for City services. The decrease in taxes is a result of
the fiscal disparities distribution, value of new residential construction and the expiration of the
Fleet Farm Tax Increment Financing District.
The tax capacity rate is not likely to increase significantly in future years. Approximately 12.5%
of the tax levy is for voter-approved bond issues. It should be noted, however, that the last tax
levy for the police station will be made in 1997. Also, approximately 5.5% of the tax levy is for
payment of Certificates of Indebtedness. The last levy for certificates will be made in 1998.
Equipment purchases in 1995 and 1996 were made from General Fund balance carryover
from previous years.
The business portion of real estate taxes has. gone from 37.9% in 1990 to 31.3% in 1995.
With the implementation- of the strategic growth management controls plus an enhanced level
of business opportunities, this trend should continue. Significant-progress in the following
areas are indications of emerging economic vitality:
• Completion of Co. Rd. 46 and initial construction of the Co. Rd. 46/I-35 interchange.
Improvements in this area will .enhance traffic patterns and result in increased new
business opportunities (i.e. Leo's South.).
• Nearly 500 acres of land held by the Resolution Trust Corporation for several years was
purchased by Airlake Development, Inc., and is now available for expansion of existing
businesses and construction of new businesses.
• New Morning Windows was secured as the anchor tenant for Fairfield Business Campus.
Construction of a 42,000-square-foot facility is underway.
• Tax increment financing projects were undertaken for New Morning Windows and
Century Refining.
• New and/or business expansions took place with Parker Hannifin, Landscape Junction,
Ryt-Way Industries, Cracker Barrel Old Country Store, Grist Mill and Stampings of
Minnesota.
• The City is an active partner in the Dakota County Economic Development Partnership.
Another source of economic vitality for the balance of this decade could come from the
establishment of a Convention and Visitors Bureau. To that end, I recommend the City
evaluate the benefits of creating a local lodging tax. We need to recognize the economic
benefits derived by the entire community when visitors stayin our hotels. Visitors seek lodging
in Lakeville when participating and attending events such as the AAU baseball tournament,
hockey tournaments, Pan-O-Prog and other tournaments. They also seek hotel rooms when
traveling the I-35 corridor to reach the Megamall or attend amateur, collegiate or professional
i sporting events in the Twin Cities. It is especially important to evaluate a local lodging tax at
CITY OF LAKEVILLE SPECIAL COUNCIL MEETING
SEPTEMBER 13, 1995
PAGE 7
this time with the pending construction of two additional lodging facilities with a capacity of
more than 100 rooms.
The only increase for services proposed in 1996 is a modest increase in sanitary sewer rates.
The City has not increased its sanitary sewer rates in more than five years, even though the
Metropolitan Council Environmental Services (MCES, formerly the Metropolitan Waste Control
-Commission) has increased its sewage,treatment rates by 23% over the same time period. In
addition, sewage treatment charges have increased significantly as a :result of inflow and
infiltration (I/I). Inflow=is surface water that enters the system through manholes, roof drains
and cross. connections between storm and sanitary sewers; infiltration is primarily considered
to be groundwater that enters the sewer pipes through cracks and leaking joints.
The proposed sanitary sewer rate increase ($4.84 for a typical family of four) results in
Lakeville having a sanitary sewer charge ranging in the. middle of its neighboring cities of Apple
Valley, Burnsville, Eagan, Farmington and Rosemount. The fee would still be less than the
average for other cities in the metropolitan area
INVESTMENT IN TECHNO<_OGY
As mentioned earlier,. governments can cut costs by adopting new technologies to increase
productivity. New technologies require upfront investments but yield substantial long-term
savings. In the past, the City has relied on departmental staff, vendors or LOGIS to implement,
maintain or repair the various equipment and applications. With ever expanding technology at
lower costs, the City has reached a crossroads when it becomes necessary to assign
responsibility for coordination of the various technology issues to a Management Information
System (MIS) Coordinator. To that end, the 1996-97 budget proposes the creation of an MIS
position in 1996. This individual would manage not only the current systems but also
implement future applications.
The City of Lakeville began its first computer operation in 1976 when it became a member of
LOGIS. Since that time, the City has carefully planned and carried out the acquisition of a
wide array of electronic equipment that spans every department. We now have more than 200
pieces of computer-related equipment. Following is a consolidated list of technology now in
use in City departments:
• L4GIS
The Local Government-Information 'System (LOGIS) organization is a consortium of -
Minnesota oval government units joined together with the objective of establishing cost-
effective data processing and information systems for its members. The City utilizes
LOGIS for its financial, payroll,. utility billing, inspections and special assessment systems.
• Networking
The Police Department has the largest networking system in the. City, using Novell. The
Cable TV, Liquor and Engineering departments also use networking.
•
CITY OF LAKEVtLLE SPECIAL COUNCIL MEETING
SEPTEMBER 13, 1.995
PAGE 8
• GIS
Lakeville adopted a Mission Statement prior to making a financial commitment to the GIS
program in 1992. it reads:
The City of Lakeville plans to commit resources to meet the Engineering Department's need for
additional Computer aided Design (CAD) capability and to support other departments in the
.application. of their-Geographic lnfomtation,needs. The. City will be purchasing a computer
system and software tasatisfy these requirements.
Within this framework, the Engineering Department will support other City functions with a
speciflic range of information technology and ?~eJated services. These services shall be
provided by sharing resources, ideas and costs so that the City, as a whole, wilt be better able
to improve its services delivery to the community without unduly sacrificing the flexibility and
adaptability needed in a rapidly changing environment (requirements and technology).
The City of Lakeville will achieve satisfaction by meeting (or exceeding) realistic
expectations and performance standards.
With the possible exception of Coon Rapids, Lakeville is years ahead of most metropolitan-
areas cities in its development of GIS applications.
• Public Works
The Public Works Department uses a number of pieces of equipment that are either
directly or indirectly connected to computer systems. Traffic counters, for example,
calculate not only the volume but also speeds and composition. Flo-totes are used to
calculate sanitary sewer flows that are extremely critical in evaluating inflow and infiltration.
The vehicle managemenf system provides strategic information regarding fuel consumption
and maintenance needs. The Utility Department is in the process of taking bids for
handheld meter reading devices; these handhelds reduce labor costs. and improve
productivity and accuracy.
• .Community Development
The Community Development Department is an active participant in the Dakota County
Economic Development Partnership. The Partnership has received a state grant for
development of a GIS system to attract and retain commercial and industrial development.
• Recreation
A computenized'participant registration scheduling system is used for-all recreation
programs..
° Engineering
Infrastructure improvements are designed utilizing Auto CAD and Softdesk. Rainfall
measurements are analyzed by computer to assist in the evaluation of storm water
retention programs and sanitary sewer IJI studies.
CITY OF LAKEVILLE SPECIAL COUNCIL MEETING
SEPTEMBER 13, 1995
• PAGE 9
• Police
Mobile digital terminals (MDTs) connect police squad cars with national, state-wide and
federal law enforcement data, thereby providing patrol officers with quick and accurate
information about vehicles and criminal history.
• Fire
Training simulators are .part of the ongoing fire training program. The Fire Department also
utilizes the computer system. for equipment management and fire reporting.
° Liquor
Point of sales cash registers transfer sales data to computers.. This information is critical
for inventory control and also provides market information critical for strategic planning.
Handheld computers wilt be utilized to improve the speed and accuracy of physical
inventory counts.
• Training
Employees receive excellent training in order to maximize efficient use of technology. A
significant amount of training is received through local technical and educational facilities.
Training was offered recently in Excel, Windows and basic computer literacy.
A concise list of the more significant future projects follows:
• SCADA
Supervisory Control and .Data Acquisition (SCADA) will enable the Utility Department to
monitor and control a complex water distribution system in conjunction with the new water
treatment plant. Personnel will be automatically contacted by telephone to address system
needs. The system will also provide accurate and timely information concerning sanitary
sewer lift stations.
• Optical Scanning
Records management can be consolidated and performance improved with optical disk
scanning and storage. Optical scanning not only eliminates volumes of paper documents
but also improves the accessibility to other departments and individuals.
• Internet
Internally, City departments can access the Internet to expand their communications
network. Externally, an Internet (Homepage) :user could gain access to information about
City services, functions and economic opportunities.
• Global Position Solutions (GPS)
Survey and engineering applications can improve productivity and reduce labor with the
use of global positioning survey equipment
• E-Mail
• E-Mail can be used to send various messages and .information directly to an individual or a
wide variety of individuals.
CITY OF LAKEVILLE SPECIAL COUNCIL MEETING
SEPTEMBER 13, 1995
PAGE 10
• 800 Mhz Regional Radio System
Local governments will be challenged much more in the future than they have been in the
past. Their success in meeting the challenges of tomorrow will be more dependent than ever
upon the sensitivity of elected leaders to citizen needs, the professional vision and technical
competence of staff, and the organizational ability to adapt to changes in citizen demands and
services requirements, delivery methods and the use of modern technology. The ongoing
investment in computer technology will enable us to achieve our goal of making good
choices-- within our means.
DEDICATION
The 199fi-97 preliminary budget is dedicated to PAT HARVEY and the COMPUTER for their
significant role in increasing the flow of information for managerial decisions and improved
productivity during the past decade. The computer and related technology not only provide for
rapid processing of data but also enable us to be more responsive to the customer while
containing costs..
Councilmember Harvey thanked the Council and staff for the budget dedication.
. Mayor Zaun indicated that the budget document is available for review at City Hall. A
summary of the budget, including the message and narrative, is available upon request.
Mayor Zaun indicated that the City Council will be reviewing the document at scheduled work
sessions prior to the Truth in Taxation hearing in December.
95.159 Motion was made by Harvey,. seconded by Mulvihill to approve the following
resolutions:
Resolution No. 95-181 adopting the 1996 Preliminary General fund Budget
Resolution No. 95-182 adopting the 1996 Preliminary Cable TV Fund Budget
Resolution No. 95-1$3 adopting the 1996 Preliminary Environmental/Recycling Fund
Budget
Resolution No. 95-184 adopting the 1996 Preliminary Drug Enforcement Fund
Budget
Resolution No. 95-1$5 adopting the 1996 Preliminary Employee Benefit Fund Budget
Resolution No. 95-186 adopting the 1996 Preliminary Motor Vehicle Fund Budget
Resolution No. 95-187 adopting the 1996 Preliminary GIS Fund Budget
Resolution No. 95-188 adopting the 1996 Preliminary Storm Water Utility Fund
Budget
Resolution No. 95-189 .adopting the 1996 Preliminary. Oak Wilt Suppression Grant
Fund Budget
Resolution No. 95-190 adopting the 1996 Preliminary Enhanced 911 Fund Budget
Resolution No. 95-191 adopting the 1996 Preliminary Equipment Fund Budget
. Resolution No. 95-192 adopting the 1996 Preliminary Building Fund Budget
Resolution No. 95-193 adopting the 1996 Preliminary Liquor Fund Budget
Resolution No. 95-194 adopting the 1896 Preliminary Water Utility Fund Budget
CITY OF LAKEVILLE SPECIAL COUNCIL MEETING
SEPTEMBER 13, 1995
PAGE 11
Resolution No. 95-195 adapting the 1996 Preliminary Sanitary Sewer Utility Fund
Budget
Resolution No. 95-196 adopting the 1996 Preliminary Municipal. Reserves Fund
Budget
Roll call was taken on the motion. Ayes, Johnson, Zaun, Sindt, Mulvihill, Harvey.
95.160 Motion was made by Sindt, seconded by Harvey to approve Resolution No. 95-197
adopting the 1995!1996 Preliminary Tax Levy.
Roll call was taken on the motion. Ayes, Zaun, Sindt, Mulvihill, .Harvey, Johnson.
95.161 Motion was made by Johnson, seconded by Sindtto approve Resolution No. 95-198
setting budget hearing dates for December 18 and December 20, 1995.
Roll call was taken on the motion. Ayes, Sindt, Mulvihill, Harvey, Johnson, Zaun.
95.162 Motion was made by Mulvihill, seconded by Johnson to table the setting of budget
work sessions until the September 18, 1995, Council meeting.
Roll calf was taken on the motion. Ayes, Mulvihill, Harvey, Johnson, Zaun, Sindt.
• There being no further business, Mayor Zaun adjourned the meeting at 8:00 p.m.
Respectfully submitted,
Charlene Friedges, i Clerk
Duane Zaun, Mayor