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HomeMy WebLinkAbout10-19-99 WS_ :, • COUNCIL BUDGET WORK SESSION TUESDAY, OCTOBER 19, 1999 '7:30 A.M. In attendance: Mayor Duane Zaun, Councilmembers Betty Sindt, Tom Ryan, Lynette Mulvihill, and David Luick. Also in attendance: Robert Erickson, City Administrator; Dennis Feller, Finance Director; Brian Kempa, Senior Accountant; and David Lang, Accountant II. News media in attendance: Life and Times Reporter: Amy Friberg. The Mayor and Councilmembers were provided with a memorandum prepared by the Finance Department for discussion relating to the following budgets. Discussion: Dennis Feller began by providing the Council with an overview of the 2000: General Fund Expenditures (Police through Recreation), Municipal reserves Fund, Capital Projects Funds, and Enterprise Funds. POLICE (1) Mr. Feller indicated the proposed budget provides for two Patrol Officers to be hired January 1, 2000. The budget anticipates receiving a Federal COPS FAST grant which would fund one of the Officers. Based upon discussion with Police Chief Martens, the two new Patrol Officer's start dates are recommended to be September 1, 2000 rather than January 1. Mr. Erickson explained that by moving the start dates, the City would use those cost savings to offset the employee health insurance premium increase in 2000. (2) Mayor Zaun asked what the consequences would be if the COPS FAST grant was not awarded. Mr. Erickson responded that the budget still provides funding for one Patrol Officer. (3) Mayor Zaun asked if civil defense sirens were provided in the budget. Robert Erickson stated the budget provides for two sirens; one replacement, and. one additional. Mr. Feller indicated the new siren will be located in the northeast quadrant of the city, approximately south of Fire Station #2, and west of North Trail Elementary School. Mr. Erickson noted the new sirens come with a battery backup supply in the event of a power outage and recommended all future replacements have the backup system. The City currently has 15 sirens in use. Mr. Erickson requested Council to consider replacing these sirens at a rate of one per year. (continued) • Council Budget Work Session Tuesday, October 19,1999 Page 2 Discussion: (continued) POLICE (continued) (4) The capital outlay budget provides funding for 11 cellular phones to be placed in police squad cars (ref. Finance Dept. Memo, Item l .). Funding for the monthly operating costs were inadvertently omitted during the budget process. Mr. Feller recommends adding $4,224 in annual operating costs to the budget provided Councilmembers approve the cellular phone expenditure. (5) Mr. Feller recited the various policies of Eagan, Apple Valley, and Burnsville regarding the personal use of cellular phones (ref. Finance Dept. Memo., Item 2.). Mr. Erickson explained that since the cell phone remains with the squad car and two to three Officers use the car each day, accounting for these personal calls between Officers would be extremely difficult and the bookkeeping cost would far exceed any benefit derived from having them. Mr. Erickson asked Council to provide feedback regarding a policy prohibiting personal calls from being made by Officers using the squad cellular phones. Mr. Erickson further noted that the City already has an existing policy pertaining to other City staff prohibiting personal cell phone calls. • The Mayor and Council agreed to a policy prohibiting cellular phone use for personal calls, except in extenuating circumstances where an Officer or employee needs to contact a family member due to an emergency or to inform them of their working beyond their normal shift. (6) Police Station lobby furniture and workstations costing a total of $7,117 were budgeted in 1998. Mr. Feller explained that these purchases were postponed until the station's remodeling project was completed. Mr. Feller recommended these previously approved capital outlay items to be purchased and accounted for in 1999. (ref. Finance Dept. Memo., Item 3.). (7) Mr. Feller noted that the City will be receiving an unanticipated $2,667 in Federal grants to be used towards protective police vests purchased in 1999. The State of Minnesota has provided $5,000 towards the purchase of these vests. (ref. Finance Dept. Memo., Item 4.). FIRE (1) Mr. Feller indicated Firefighter's pension will increase from $4,000 to $4,500 per year of service, effective January 1, 2000. (ref. Finance Dept. Memo., Item 5.). • (continued) Council Budget Work Session • Tuesday, October 19, 1999 Page 3 Discussion: (continued) FIRE (continued) (2) Mr. Feller discussed the Fire Department tanker that was recently purchased. The tanker was originally budgeted for $120,000 less trade-in of $45,000 for a net cost of $75,000. The actual cost was $99,000 with a current buyers bid to pay $35,000 for the used tanker. The net cost of the tanker is $64,000, which yields a net budget savings to the City of $11,000. (ref. Finance Dept. Memo., Item 6.). ALFAMBULANCE (1) Mr. Feller stated the City's ambulance subsidy continues to remain at $0.50 per capita. ENGINEERING No questions or comments. STREETS (1) Mayor Zaun inquired as to whether or not the weather satellite service provider was • appropriate for the City. Mr. Erickson explained that the satellite service provided more visual appeal than enhanced forecasting service. In comparison, the satellite service did not provide the same level of forecasting, nor the in-depth fax printouts, which are distributed citywide. Councilmember Sindt questioned if the local weather coverage service improved since the National Weather Service moved to the City of Chanhassen. Mr. Erickson responded that service has improved based upon feedback received from the City's Police Dispatchers. Mr. Erickson further noted that the City benefits from weather Spotters and the National Weather Service when determining when severe weather is approaching. PARKS (1) Mr. Feller indicated for the first time the City will lease two riding lawn mowers on an annual basis. Mr. Erickson stated the lease does not provide for the cabs and snow plows installed on the mowers, and will have to be purchased. (2) Mayor Zaun asked what is the official title of the new Parks position. Mr. Erickson stated the Personnel Committee titled this position as the "Manager of Park Operations." In addition, this position would be responsible for all contractual maintenance responsibilities (incl. landscaping, custodial, etc...) which is presently being performed by the Finance Director. • (continued) Council Budget Work Session Tuesday, October 19, 1999 Page 4 Discussion: (continued) PARKS (continued) (3) Mayor Zaun inquired about the benefits of City staff mowing boulevards as opposed to contractual mowing. Mr. Erickson explained that the City has evaluated the two alternatives and found that City staff can perform this function more cost effectively than outside contractors. RECREATION (1) Mr. Erickson received a proposal from the Parks and Recreation Director regarding priority registration for Lakeville residents and anon-resident fee structure. Mr. Erickson will make a recommendation to the Council at a subsequent meeting. (2) Councilmember Sindt inquired if there was any future consideration given to expanding the Senior Center. Mr. Erickson explained that once the Arts Center is completed, it will serve to meet certain program needs for Seniors, due to both the location, and various program opportunities it will present. As a result, the Arts Center will provide some space relief to the Senior Center. • (3) Funding for Administrative employee shirts has been moved from the Administrative program of the Recreation budget to the Youth Activities program budget for summer Program Leaders. (ref. Finance Dept. Memo., Item 7.). MUNICIPAL RESERVES FUND (1) Mr. Feller reaffirmed, that based on the Council's excellent decision to increase the City's Property Liability, and Casualty deductible to $25,000 (aggregate $75,000), the City's premium has been reduced substantially, thus reducing the City's annual insurance costs. (2) Mr. Erickson commented that the City has the lowest experience modification rate of any city in Dakota County. Further, the State Legislature has increased Minnesota Cities tort liability limit upon which claims are paid, from a maximum of $600,000 to $1 million. EQUIPMENT FUND (1) Mr. Feller reiterated, the Legislatures imposition of levy limits have forced the City to issue certificates of indebtedness for the purchase of capital outlay equipment. This method of financing equipment results in added financial burdens to the City in the form of bonded interest and issuance costs. The 2000 Equipment Fund budget proposes to issue $639,200 in certificates of indebtedness to finance Police, (excluding squad cars) Fire, Streets, and Parks equipment. (continued) Council Budget Work Session Tuesday, October 19, 1999 • Page 5 Discussion: (continued) EQUIPMENT FUND (continued) (2) Councilmember Ryan. expressed questions regarding the following equipment items: Streets: 1) Question: What type of work is the backhoe used for? Could it be rented? 2) Question: The sidewalk maintainer is an extremely specialized machine. Is there a more versatile piece of equipment available that could do more than sidewalks? 3) Question: What is the purpose of the plasma cutting unit? 4) Question: Provide more information related to the automated lubrication dispensing system. Parks: • 5) Question: Is there any duplication between the backhoe in the Street Department and the Ford tractor in the Parks Department? Mr. Erickson stated this is an articulating tractor which is specialized for dragging ball fields only. 6) Question: The City is leasing riding mowers, why is there a mower in 2001 for purchase? Mr. Erickson explained the mower was left in the 2001 budget pending an evaluation of leasing vs. purchasing to be determined at that time. 7) Question: Do City Departments share equipment? Mayor Zaun requested staff to respond to the unanswered Equipment Fund questions at the start of the next budget work session. BUILDING FUND (1) Councilmember Ryan asked if a Community Center would provide relief to the space. constraints in City Hall, (i.e., Parks and Recreation move to the Community Center). Mr. Erickson stated the Parks Administrative staff would most likely need to stay in City Hall from an organizational standpoint. Mr. Erickson cited several cities that have moved both parks and recreation personnel to a community center with limited success. i (continued) Council Budget Work Session • Tuesday, October 19, 1999 ' Page 6 Discussion: (continued) BUILDING FUND (continued) (1) (continued) Mr. Erickson noted that eventually the Police Department will outgrow it's present location, beyond any further expansions. At that time, some City Hall functions and/or Departments could make a move to that location easing some space constraints at City Hall. PARKDEVELOPMENT FUND (1) A revised Park Development Fund budget (rev. October 18, 1999) was provided to the Council during this meeting, and Mr. Feller asked the Council to discard the original budget in place of the revised version. (ref. Finance Dept. Memo., Item 9.). (2) During 1999, the City accepted park land in-lieu of a Park Dedication cash fee from the Marion Fields West plat. This plat consisted of 115 units, and would otherwise have generated $152,375 in fees, as was budgeted. As a result of this transaction, the estimated December 31, 1999, Fund Balance will be approximately $150,000 lower than was originally estimated. • (3) The 2000 estimated Park Dedication fee revenues have been reduced due to the recently approved moratorium. The original budget anticipated dedication fees of 400 units at $1,325 per unit, the revised estimate is 275 units. LIQUOR FUND (1) Mr. Feller noted the new store closing hours (effective after Labor Day weekend), which now close on weekdays at 9:00 P.M.. Mr. Feller estimates labor saving to be approximately $20,000 annually. (2) Mr. Erickson explained that based upon further inspection, the Liquor store van is in need of replacement. $17,550 is proposed to be added to the Liquor Fund budget for it's replacement. The used van is proposed to be transferred to the Water Department where it would be used as the fire hydrant painting vehicle. (ref. Finance Dept. Memo., Item 8.). WATER OPERATING FUND (1) Mr. Feller stated that no water rate increase was anticipated in 2000. Mr. Feller reiterated that the City of Lakeville has the lowest rates for treated water in Dakota County. Mr. Feller attributed these low rates to the Council's planning foresight in financing the City's water infrastructure with connection charges. • (continued) Council Budget Work Session Tuesday, October 19, 1999 Page 7 Discussion: (continued) WATER OPERATING FUND (continued) (2) Mr. Feller explained that the City's water well #2 (located in Valley Park) contains high levels of radium, and the EPA does not recommend using the well any longer. The City is proposing to replace well #2 with new well # 14. Well # l 4 and collection pipe are proposed to be funded by the Water Operating Fund. Mr. Erickson asked Council to provide some feed back as to an alternative use of the well water or a capacity in which the water may be used. (3) Mr. Erickson indicated that the water treatment plant is proposed to be expanded in 2000 and includes a 2 million gallon ground storage reservoir. (4) Councilmember Ryan expressed concern over the cost of treated water being used for irrigating lawns? Mr. Erickson stated that 30% of peak demand is not treated water. Further Mr. Erickson stated, the Council made a decision several years ago not to treat peak demand water usage since it was not cost beneficial. Mr. Erickson stated he will • provide more information on the subject. Mr. Erickson indicated that staff is recommending expansion of the existing water treatment facility rather than building a new plant at Fairfield. SANITARYSEWER OPERATING FUND (1) Mr. Feller stated that no sanitary sewer rate increase was anticipated in 2000. Mr. Feller further noted that the City of Lakeville's sewer rates are average in comparison to surrounding communities in Dakota County. (2) Mr._Feller stated MCES (Metropolitan Council Environmental Services) is requesting the City to pay for adjusted sanitary sewer flows which occurred in the Crystal Lake area prior to 1998. The City staff is disputing MCES`s estimated sanitary sewer flow volumes. The City of Lakeville is uphill from the Burnsville interceptor which serves the Crystal Lake area. As such Lakeville should not have to pay the cost of sanitary sewer flows due to inflow and infiltration in the Burnsville interceptor. FUTURE COUNCIL BUDGET WORK SESSION Councilmembers agreed to meet at 6:15 P.M., November 1, 1999 to resume discussion. • This work session ad'ourned at 9:05 A.M. J