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HomeMy WebLinkAbout08-27-90 CITY OF LAKEVILLB SPECIAL COUNCIL MEETING AUGUST 27, 1990 The meeting was called to order by .Mayor Zaun at 7:00 ,p.m. Roll call was taken. Present: Councilmembers Ruhmann, Sindt, Mulvihill, Harvey and Mayor Zaun. 5 Also present: B. Erickson, City. Administrator; D. Feller,. Finance Director; C. Friedges, City Clerk. Mayor Zaun explained that Minnesota Cities must comply. with the truth in taxation program for taxes payable in 1991. To comply with truth in taxation laws, cities must adopt a proposed budget and certify: the .proposed levy, along .with the: .selected public hearing dates, to the County Auditor prior to September 1, 1990. The County Treasurer will mail notices to property owners notifying them. of the time and place of the final budget.. hearing. The City will also be publishing a legal notice concerning the hearing. The City's final. budget and tax levy must be certified to the .County Auditor by December 20, 1990. Mr. Erickson pointed out that if the County's expenses exceeds the amount given to them by the state for compliance with truth in taxation, they will bill the City for the difference. GBNSRAL FUND BUf~ET Bob Erickson introduced the 1991-92 preliminary budget far the City. "Waves for the Future" represent .the new. tax laws the Legislature has placed on cities. These .new laws are extremely restrictive on the City's ability to provide services to its growing number of residents. The Legislature has limited the City's. budget increases to ~ less than. the actual levels of inflation, and has restricted the City's. ability to increase taxes to fund essential services.. The 1991-92 .budget document has been prepared .with innovative and creative methods the staff has devised to hold down costs and develop additional sources of revenue in an attempt to accomplish more...with fewer resources. Mr. Erickson explained that. the City of Lakeville is ..one of the only cities in the state that prepares a two year .budget, which is extremely beneficial for fiscal planning. The budget reflects a 4~ cost of living .salary increase. for City personnel. It does not, however, include funding fora increased fuel costs. Mr. Feller highlighted the General Fund. Revenues. and Expenditures as follows:.. x. , CITY OF LAKfiVILLfi SPFsCIAL COUNCIL MEETING AUGUST 27, 1990 PAGfi 2 RfiVI~NOBS Licenses and Permits The budget assumes that 500 single family building .permits will be issued in .1990, .400 in 1991 and 1992. The budget also takes into consideration the .issuance of one industrial permit and seven commercial permits for each year.. Intergovernmental Revenues HACA (Homestead and Agricultural Credit Aid} and LGA {Local Government. Aid} are .the largest amounts of intergovernmental revenues. Solid waste grants for 1990 and 1991 are $113,000 and $155,000 respectively. It is anticipated that the solid waste grant will be substantially reduced for 1992 but the extent of the cutback is unknown at this time; for budget purposes, the grant is estimated at $75,000. Charles for Services (fees charged. back to the residents who receive the services): Investment Management Fees - $15,450 were estimated .for 1991 and 1992. Inspection .Fees and Plan/finergy Fees are based on building permits issued. Dispatching services are for the City of Farmington - • $25,417. The Fire fighter Contract is with fiureka Township - $?,435. Street Lights - Budget reflects a rate increase of approximately 12X for 1991 (pending results from rate study}. Recreation Fees - Budget reflects an- increase from $30,000 irr 1990 to $48,000 in 1991 and $53,000 in 1992. Court Fines - Budget reflects an increase from $79,000 in 1989 to $96,000 in 1990, $106,000 in 1991 and $113,000 in 1992 due to improved traffic enforcement. Interest on Investments - Approximately $128,000 assuming an average 8X return of investments. Interfund Transfers Mr. Feller explained that the Liquor Fund has $4?,000 budgeted for the police officer assigned to the South Metro Drug Task Force. The Liquor Fund will continue to fund this position through 1992 and, in addition, will start .contributing funds for the DARfi officer. in 1991 and 1992. CITY OF LAKEVILLE SPECIAL COUNCIL MEETING AUGUST 2?, 1990 PAGE 3 BRPSNDITUI~S Personnel One street maintenance person will be added in 1990, one park maintenance person in 1991 and one police officer in .1991. Fire Marshal would increase from 24 hours per week in 1990 to 28 hours per week in 1991 and full time in 1992, subject to that position generating enough revenue to offset the increase in personnel costs. No additional full time personnel in the 1992 budget. Departmental Operations City Council - Association of Metropolitan Municipalities {AMM) dues are being deleted from the. 1991 and 1992 budgets. Messages - Staff person will go .from 20 to 32 hours, anticipates the use of desk top publishing, which will result in a decrease in contractual. publishing costs. Cable TV - Budget provides 30 hours for a cable .coordinator and eight hours far a communications assistant per. week for administrative purposes and 17 hours per week for production work.. The program is funded entirely from franchise licensing fees and, therefore, the expenditures. in this program will be equal to the revenues. from Cable TV franchise fees each .year. Any money not. used will be carried over to subsequent years. City Clerk - Budget anticipates a redistricting in 1992.. Motor Vehicle. - This department generates approximately $104,000 income per year, which approximates the .total cost of operations. Legal - Budget reflects a 12~ increase in total costs per year, which does not include costs charged for police prosecution, fees. .charged directly to developers or special assessment programs. Committees and Commissions - Budget includes City services provided to Pan-O-Prog, including busing during the fireworks event and waste disposal during Pan-O-Prog activities, Thin does note include the $4,000 payment from the Liquor Fund for fireworks. CITY OF LAKBVILLfi SPECIAL COUNCIL MBBTING AUGUST 27, 1990 PAGE 4 Community Development - Recycling provides. $113,000 to ..offset direct costs in 1990, $156,000 in 1991 and $75,000 in 1992. Money is also provided for updating the Star City Book. Gity Ha1ljGeneral Government Building - Energy costs. for city hall are far below expectations. Contractual maintenance of the building and grounds maintenance will continue. Insurance - There are anticipated increases in the insurance program; however, the Utility and Liquor Funds pay their portion of the liquor liability. and property insurance. A $32,000 refund .each year from the League of Minnesota Cities Insurance Trust is also anticipated. Police - Budget provides for one new police officer in 1991 and no additional personnel in 1992 due to reduced LGA and levy limitations.. Fire - The Fire .Department receives $10,000 as compensation to be used for the fire fighter picnic and. dinner.. The 1991 budget has a new line item called Medical Services, which is used primarily far the OSHA requirement that all first responders be inoculated for. Hepatitis B infection. This one time cost is approximately $7,000. The 1991-92 budgets provide for contracting with the City of St. Paul for the Hazardous. Materials Response Team. Capital outlay for the. Fire- Department is included under certificates of indebtedness. Other Public .Safety - There are no significant changes foreseen in the animal control, civil defense and ambulance programs. fingineering - The survey team will be establishing benchmarks for aerial .photos in 1991. The City. budget provides $45:,000 for .these photos in 1991. This information will be used. for the. preparation. of topographic maps and will be entered. into the County. Geographic Information System. Two seasonal interns will be hired for three months in 1991 and 1992. Streets - The .City plans to double its contractual sweeping to .include Valley Park and the area east of Ipava Avenue, north of 185th and south of 160th Streets. The 1991 budget provides $21,000 for partial. implementation of the traffic sign upgrade and $2,000 far installation of OSHA required door reversers on .the overhead doors. • CITY OF LAKEVILLE SPECIAL COUNCIL MEETING AUGUST 2?, 1990 PAGE ~ Parks & Recreation - Senior Citizens Center budget includes the purchase of a dictaphone for $600. The public .works office and two warming -houses will also be renovated. Fees .are being increased in various recreational areas. to offset the increased costs of operation. Market pricing was taken into consideration when preparing the fee structure. Fund Balance Mr. Feller explained that the fund balance must contain. sufficient cash to carry the City from January. 1st to July. 1st of each year. He expressed concern that the. State Legislature may,. at same time, force cities to spend down their fund balances. With that in mind, the staff has created a special revenue fund in which to reserve contingent .liabilities for employee severance pay, should an employee who is eligible for severance pay resign or .retire. .The amount of contingent. liabilities currently included in the fund .balance is approximately $191,000. In closing, Mr. Feller stated that staff has been prudent and conservative in preparing this budget document as a result of the penalties being placed: upon the City by the Legislature. Councilmembers expressed their disappointments with the penalties. the Legislature has placed on cities, and how they have adversely affected Lakeville's 1991 and 1992 budgets. 1991-1992 TA% LSYY Mr. Feller provided a broad overview of .taxes/levy limits and explained how levy limits are calculated. Mr. Erickson explained that the $40,000 contingency (inflation adjustment) was included in the total overall tax levy for the purpose of providing for needs which are unknown or unforeseen at this time. The City can lower the final tax • levy but can not increase it above the preliminary tax levy. Therefore, if all or part of the $40,000 contingency is .not required at the time of the. final budget hearing, the tax levy can be reduced accordingly. LIQUOR FUND BUDGgT Mr. Feller explained that .three factors were taken into consideration when preparing sales projections for the City's three off-sale liquor stores. The first factor was growth in customer base, which was based on the number of potential customers within a two mile radius of each store. The second CITY OF LAKEVILLB SPgCIAL COUNCIL MEBTING AUGUST 27, 1990 PAGE 6 factor was inflation; an overall four percent increase per year is anticipated. The third factor was consumer trends, with beer shaving a slight increase locally. The age and attitudes of the population are resulting in a decrease in alI product lines. The municipal liquor stare in Apple Valley had a slight impact on Lakeville Store No. 3 sales.. Mr. Feller explained .that .the 1992 budget provides - one additional full-time supervisor. Capital outlay for the liquor stores include new shelving for the .store #1 beer cooler, an additional computer for the manager and a box baler for store #1. There are no significant changes in operating costs .for 1990 through 1992, with the exception of minor adjustments for inflation.. in specific areas. The Liquor .Stares will continue the Battle Buddy marketing program, and the Liquor Fund will continue to contribute $4,000 each year to provide fireworks for Pan-O-Prog. The .Liquor Fund will also continue to contribute lOX of its net operating income each year to the three school districts for chemical .awareness programs. Councilmember Ruhmann pointed out that the Legislature is considering the sale of wine and strong beer. in .grocery stores, which could have a dramatic impact on the City's liquor operation. Mr. Feller explained that the City took that issue into consideration when purchasing the Store #3 property, and stated the building. could. be renovated for another use. if necessary. Stares #1 .and #2 are leased properties.. Councilmember Iiarvey pointed out that Store #3 is caned in full by the Liquor Fund and has no debt against it. UTILITY FDHD BUDGBT Dennis Feller presented the 1991-92 Utility Fund Budget. The major projects being undertaken by the Utility Fund include the re-painting of three water reservoirs, one each .year during 1990, 1991. and 1992. The City also intends to redevelop one well per year as part of its preventative maintenance program; the City has six wells. Capital Outlay requests for 1991 include two half ton pickups, Geographic Information System hardware, new furniture for the Utility Billing Clerk, office furniture for the NBI Building, two new computers and hand held radios. Thee 1991 budget also provides $5,000 far a meter test bench -and $1,200 for an oscilloscope far trouble shooting control panels. • , CITY OF LAKEVILLE SPECIAL COUNCIL MEBTING AUGUST 27, 1990 . PAGE 7 The 1991 Water Department Budget provides $35,000 for a study. which encompasses water quality, iron .removal, rate structure .and a comprehensive water plan update. The final payment.. on the 1980 water revenue bonds will be made on February 1, 1993, and the last payment from the McStop project will be received in 1993. The leased antennas on the Dakota Heights water tower generates approximately $11,000 per year. The 1991 budget provides $13,000 for replacement of hydrant flags. Revenues for mobile homes, institutions and commercial/industrial property are projected to remain constant for the next three years. Single family residential property composes 65X of the City's utility revenue. The City is currently. experiencing. the lowest water per capita consumption usage in the past five years. Mr. Feller explained that he has taken a conservative approach to estimating revenues,. assuming 400 additional dwelling units .per year during each of the next three. years. With a possible 3~ increase in rates (which calculates to about 1~ of a resident's overall utility bill}, the City could expect to receive an additional $18,000 per year in 1991 and 1992. • .The 1991 Sewer Department Budget provides for the televising of the sanitary sewer system in the downtown area and in the trunk sewer line in the area of Kingsley Lake north of the Chart House, It is estimated that the Metropolitan Waste Control Commission (MWCC) will charge Lakeville $1,000,000 for sewer in 1992.. It is .also assumed that. MWCC's rate per thousand gallons. would increase roughly 5X per year. Since 75~ of the operating costs. for the Sewer bepartment are the result of MWCC charges, this becomes a significant. figure. Mr. Feller explained that storm sewer maintenance and storm sewer construction fees .will probably be implemented in .1992 as part of the utility billing system. Councilme~er Harvey pointed out that utility. fees have not increased for `several years, and stated he feels a 3X increase would be .appropriate. He prefers, however, to make the incre~es in a timely manner to avoid one large increase. 90.220 Motion was made by Harvey, seconded by Mulvihill to approve Resolution No. 90-95 adopting the preliminary 1990j1991 tax levy. Roll call was taken on the motion. Ayes, Zaun, Sindt, Mulvihill, Harvey, Ruhmann. CITY OF LAKBVILLT SPTCIAL COUNCIL MSTTING AUGUST 27, 1990 . PAGT $ 90.221 Motion was made by Sindt, seconded by Ruhmann to approve Resolution No. 90-96 adopting the preliminary 1991 General Fund Budget. Roll call was taken on the motion. Ayes, Sindt, Mulvihill, Harvey, Ruhmann, Zaun. 90.222 Motion was made by Mulvihill, seconded by Sindt to approve Resolution No. 90-97 approving the 1991 preliminary Liquor Fund Budget. Roll call was taken on the motion. Ayes, Mulvihill, Harvey, Ruhmann, Zaun, Sindt. 90.223 Motion was made by Ruhmann, seconded by Sindt to approve Resolution No. 90-98 approving the preliminary 1991 Utility Fund Budget: Roll call was taken on the motion.. Ayes, Harvey, Ruhmann, Zaun, Sindt, Mulvihill. 90.224 Motion was made by Sindt, seconded by Mulvihill to approve Resolution No. 90-99 setting the public budget hearing dates. Roll call was taken on the motion. Ayes, Ruhmann, Zaun, Sindt, Mulvihill, Harvey. UNFI1~iISHBD BiPSINBSS Mayor Zaun stated that a citizen, prior to the August 20th regular meeting, requested the Council to place a message on .the I-35 reader .board .sign supporting a peaceful. resolution of the Middle Tact crisis. Councilmember Sindt stated that guidelines on the use of the reader board sign have been in place since 19$5, and she suggested those guidelines. (dated February 28, 1985, on file in the City Clerk's office) continue to be followed. Cauncilmember Harvey pointed out that since the guidelines state that messages shall be processed on a first came, first serve .basis, this message will not appear an the board until September 17th. He suggested that .the staff determine whether this message is still appropriate at the time it is placed. on the board. 90.225 Motion was made by Ruhmann, seconded by Mulvihill to immediately place the following message on Cable Channel 34 and in the Messages portion of the Life & Times newspaper; . and place it on the I-35 reader board when the board becomes available, if the message is still appropriate at that time: "Lakeville supports a peaceful resolution of the Middle Tact crisis and the safe return of U.S. citizens,... military. personnel .and allies". ' • ~ CITY OF LAHEVILLE SPECIAL COUNCIL MEETING AUGUST 27, 1990 PAGE 9 Roll call was taken on the motion. Ayes, Zaun, Sindt, .Mulvihill, Harvey,: Ruhmann. 90.226 Motion was made by Harvey, seconded by Ruhmann to adjourn the meeting. Roll call was taken on the motion. Ayes, Zaun, Sndt, Mulvihill, Harvey, Ruhmann. Time: 9:08 p.~. Respectfully submitted, Charlene Friedges, City Clem A D e Zaun, Mayo • ' •