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HomeMy WebLinkAbout11-25-97 WSCITY OF LAKEVILLE COUNCIL WORK SESSION MINUTES NOVEMBER 25,1997 The work session was called to order by Mayor Zaun at 5:00 p.m. in the City Hall Administrative Conference Room. The following individuals were in attendance: Mayor Zaun; Council Members Sindt, Mulvihill, Holberg and Johnson; Council Member-Elect Ryan; Robert Erickson, City Administrator; Char Friedges, City Clerk; and John Hennen, Administrative Assistant. ITEM NO. 1-INTERVIEW MEALS-ON-WHEELS ADVISORY APPLICANT -HELEN ADRIAN. Mrs. Adrian participates in many of the activities offered at the Lakeville Senior Center. She has worked at craft sales and assisted in the kitchen serving meals. She is interested in serving on the committee because she believes seniors do not realize the importance of a healthy diet. The Council directed staff to place the appointment of Helen Adrian to the Meals-on-Wheels Advisory Committee on the December 1, 1997, City Council agenda. ITEM NO. 2 -STATUS UPDATE ON 1998_TOBA000 LICENSES/DISCUSSION REGARDING COUNTY-WIDE TOBACCO ORDINANCE. Mr. Erickson indicated Charlene Friedges has been helpful in sorting through the tobacco license process. Ms. Friedges indicated that staff is proposing a draft ordinance which meets the minimum State and Federal law requirements. Currently there is no deadline established by the State and Federal government of when the ordinances have to be in place. Staff has provided tobacco licensees with information on the newly enacted federal and state laws and the efforts by the city and Dakota County to develop a uniform county-wide ordinance. The proposed ordinance would include conducting one unannounced compliance check of all licensed premises with the use of a minor. Mayor Zaun indicated that after speaking with Lakeville students, the students would prefer to have a minor from outside the community participate in the compliance check. Council Members and staff discussed the penalties and/or fines involved with the illegal sale of tobacco. Cigarette vending machines would also be prohibited from any establishment unless minors are at all times prohibited from entering the establishment. Council Members are in favor of a county-wide tobacco ordinance. City Council is in support of a county-wide tobacco ordinance. At 6:35 p.m. the Council proceeded to review the 1998-99 budget. • L~ COUNCIL BUDGET WORK SESSION TUESDAY, NOVEMBER 25,1997 In attendance: Mayor Duane Zaun, Council Members Betty Sindt, Bob Johnson, Mary Liz Holberg, Lynette Mulvihill and Council Member Elect Tom Ryan. Also in attendance: Robert Erickson, City Administrator, Dennis Feller, Finance Director, and Brian Kempa, Senior Accountant. November 12,1997 Budget Work Session: A question was raised regarding the Police Chief's duty weapon. Mr. Erickson informed the Council that the Police Chief and all Officers currently use department authorized and issued weapons in the course of their duty. Discussion: Dennis Feller began by providing the Council with an overview of the 1998: General Fund Revenues, Special Revenue Funds, Capital Projects Funds, Municipal Reserves Fund, and Enterprise Funds. A significant amount of discussion followed regarding these budgets, and among the many budget items discussed, the following were the most significant: TAXES • (1) Mr. Erickson commented that the City of Lakeville continues to have one of the lowest tax capacity rates in the metropolitan area. (2) Council Member Elect Ryan inquired as to what property does Dakota Electric Association have which entitles them as the largest taxpayer in the City. Mr. Feller explained that DEA is taxed on their numerous electrical substations and transmission lines that run throughout the entire City. LICENSES AND PERMITS (3) Mayor Zaun questioned why the building permit revenue in the 1997 estimated budget are approximately $242,483 lower than the 1997 adopted budget. Mr. Feller explained that the 1997 adopted budget was premised on 450 single/multi-family building permits and the revised 1997 estimate is based on 300 permits. As a result of permits issued for the Senior High School, and CommerciaVIndustrial projects, the 1997 revised estimates can be increased by an additional $186,621. (As noted on the proposed budget adjustments). The 1998 building permits and plan review fees can be increased $109,660 as a result of the pending improvements to Kenwood Junior High School, the new Junior High School and new Elementary School. (4) Mr. Erickson indicated High School Officials would like Lakeville Building Inspectors to provide inspection services related to the Senior High School expansion project. • (continued) • Council Budget Work Session Tuesday, November 25,1997 Page 2 Discussion: (continued) CHARGES FOR SERVICES -PUBLIC SAFETY (5) Council Member Sindt questioned what is the term of the dispatching agreement with the City of Farmington. The agreement for dispatching services will remain in effect until written notification is received from the City of Farmington terminating the agreement. The reimbursement agreement for the dispatching equipment with the City of Farmington will expire and be paid in full on December 31,1999. Mr. Erickson noted the Police Chief s recommendation to replace the police dispatching console at a future time after the year 2000. CHARGES FOR SERVICES -PARKS AND RECREATION (6) Mr. Erickson indicated that an exhibit (map) is being prepared which shows where recreation program/Athletic Association participants live in relation to the City of Lakeville/ISD 194 boundaries. Mr. Erickson also stated that the City does not subsidize adult programs, but does subsidize youth programs. CABLE TV FUND • (7) Council Member Sindt stated that John Morrison is currently paid by Marcus Cable to assist in the City's Cable TV department as a cablecaster. The contract with Marcus expires on February 16, 1998, however current terms will remain in effect until the new contract settled. Mr. Morrison is expected to continue as cablecaster at no direct cost to the City until the new contract is agreed upon. Appropriations have been allocated in 1999 in the event Mr. Morrison is unable to provide assistance under the new contract. Mr. Erickson stated that the Cable TV will fund the startup cost of the web site; maintenance is accounted for in the General Fund. Lakeville will be the first city to have messages and council meeting agendas published on the web site. GEOGRAPHIC INFORMATION SYSTEM FUND (GIS) (8) Mr. Erickson commented that the City of Lakeville will be one of the first cities in the metropolitan area to have street lights integrated within it's GIS system. Dakota Electric Association has their street lights integrated and NSP currently does not. (continued) • Council Budget Work Session Tuesday, November 25, 1997 Page 3 Discussion: (continued) EQUIPMENT FUND (9) Council Member Sindt inquired as to the age of the grader that is proposed to be rebuilt in 1998. The Cat Grader is a 1986 with over 10,000 duty hours. Council Member Elect Ryan asked what components are proposed to be rebuilt. According to Don Volk, Director of Operations and Maintenance, the graders engine, articulation joint, mold board and circle bushings, and steering components are proposed to be rebuilt at an estimated cost of $26,000. (10) Mr. Erickson explained the State of Minnesota Legislature imposed city levy limits for taxes payable in 1998 and 1999. The levy can be increased for inflation (2.2 percent) and growth in population. Special tax levies are permitted for debt payments. The levy limits have a punitive impact on growth cities in that it restricts their efforts to provide basic services. Mr. Erickson noted the Council's long-standing goal of being debt free by 2003, however levy limits will force the City to issue Certificates of indebtedness for the purchase of capital equipment which otherwise would be purchased with cash. • LIQUOR FUND (11) Council Member Elect Ryan asked if the City is aware of the lobbying efforts by retail grocery stores to allow them to sell wine in their stores. Mr. Erickson explained that the League of Minnesota Cities keeps the City abreast of all lobbying efforts pursued by special interest groups. Mr. Erickson noted that the liquor bill comes up for discussion in State Legislature about every two years. Its passage is not likely due to the strength of the Minnesota Beverage Association. Mr. Erickson stated the Liquor Store Manager has never submitted for mileage reimbursements for use of a personal vehicle. A $250 per month allowance was recommended based on documentation recently submitted by the Liquor Store Manager. WATER AND SANITARY SEWER OPERATING FUNDS (12) The Council discussed the current Senior Discount program which provides water, sewer, and street light discounts to senior citizens of Lakeville. The Council noted that there are numerous seniors using the discount program that may not have a genuine need of it. Council requested more information concerning the current participants. • (continued) • Council Budget Work Session Tuesday, November 25, 1997 Page 4 Discussion: (continued) WATER AND SANITARYSEWER OPERATING FUNDS (continued) (13) Council Member Elect Ryan questioned why there was not a provision for depreciation in the utility budgets. Mr. Feller explained the City's annual financial reports are prepared in accordance with Generally Accepted Accounting Principles. The Enterprise Funds (Water/Sewer and Liquor) are reported in the same basis as if held by a private corporation. Depreciation is recognized as an expense for all fixed assets including water mains, towers, lift stations and other infrastructure improvements. Budgets however, are prepared based on a working capital. Working capital includes current assets (cash, inventory and receivables) less current liabilities (less than one year). Depreciation is not recognized as an expense because the improvement or replacement of the infrastructure is financed by trunk funds rather than the water and sewer operating funds. PROPOSED ADJUSTMENTS TO THE BUDGET The Council was provided with a list of proposed adjustments to the budget with an explanation of each given by Mr. Erickson and Mr. Feller. • (14) Upon meeting with the Economic Development Commission (EDC), Mr. Erickson informed the Council that the landscape corridor study is a top priority with the Commission. The EDC further stated that it is appropriate to complete the study in 1998 so that the landscape design criteria is established prior to any additional development in or around major intersections or gateways in the community. Council Member Johnson suggested the EDC conduct a joint workshop with the Council to review work plans and goals of the EDC. After discussing the landscape corridor study at length, the Council decided to split the cost of the study over atwo-year period, $12,000 in 1998 and $12,000 in 1999. The Council further stated that the Council and EDC joint workshop shall occur prior to Council approval of the study. (15) Council Member Holberg recommended the City provide an appropriation of $3,000 to fund the cost of an intern for the Downtown Business Association. The City would also offset certain legal fees relating to the creation of a business improvement district. (16) Mayor Zaun stated he would like to see the General Fund balance grow to forty percent of total expenditures. The December 31, 1998 ending General Fund balance percentage is proposed to be approximately 35.4 percent. • (continued) . . Council Budget Work Session Tuesday, November 25, 1997 Page 5 Discussion: (continued) PROPOSED ADJUSTMENTS TO THE BUDGET (continued) (17) Mr. Erickson explained to the Council that Liquor Store Manager Judy Perron has been using her personal vehicle to travel between liquor stores while conducting business without mileage reimbursement from the City. Mr. Erickson proposed that Ms. Perron receive a monthly car allowance of $250 beginning in January of 1998. Mayor Zaun requested staff to provide information on the vehicle reimbursement policies of other cities that have similar liquor operations. (18) Council Member Holberg inquired as to when will the installation of the library construction sign be completed? Staff informed the Council that the temporary sign used for Liquor store # 4 will be converted and placed along 202nd Street and Heritage Drive informing residents of the future library site. Closing: The work session adjourned at 9:00 P.M. The public budget hearing will be held on Monday, December 15, 1997 at 7:00 p.m. in the Council Chambers. The subsequent public budget hearing will be held on Wednesday, December 17, 1997 at 7:00 p.m. in the Council Chambers. r~