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HomeMy WebLinkAbout10-12-99 WS • COUNCIL BUDGET WORK SESSION TUESDAY, OCTOBER 12,1999 5:00 P.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. Discussion: Dennis Feller began by providing the Council with an overview of the 2000: General Fund Revenues, General Fund Expenditures (Mayor and Council through Insurance), and Special Revenue 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. Feller noted that taxes represent 45% of the General Fund total revenues, which is the largest single source of revenue in the General Fund. LICENSES AND PERMITS • (1) Mr. Feller indicated there are no proposed fee increases except for plan review fees pertaining to permits. The City Council adopted the 1997 Universal Building Code fee structure, and scheduled the maximum fee to be phased in over a two year period beginning January 1, 1999. In accordance with the fee structure, plan review fees will increase from the 1999 rate of 55% to 65% in 2000. Robert Erickson noted that the City of Lakeville is the only city in Dakota County that didn't begin charging the maximum 65% immediately after the 1997 Universal Building Code was adopted by the State of Minnesota in 1998. (2) Councilmember Ryan questioned what is the dollar value of the plan review increase. The plan review fee on a typical $170,000 single-family home will increase $139.00. The 65% fee plan review fee will yield an additional $67,019 in revenue. (3) Mr. Feller indicated the City anticipates issuing over 660 single family home permits in 1999, and 450 in 2000. The reason for the projected decrease is due to increases in interest rates and the recently passed moratorium on residential subdivisions. (continued) Council Budget Work Session • Tuesday, October 12,1999 Page 2 Discussion: (continued) LICENSES AND PERMITS (continued) (4) Mayor Zaun questioned why arcade license fees have decreased from $25.00 to $15.00. Mr. Erickson explained that the State Legislature has mandated the maximum allowable fee to be collected at $15.00 per site and $15.00 per machine. Mr. Erickson further noted that the Legislator that authored the Bill to reduce the fee was an arcade owner. INTERGOVERNMENTAL REVENUE (1) Mr. Feller indicated the City continues year after year to receive an inequitable share of HACA/L,GA (state aid for property tax relief). This aid has been on a steady decline over the last seven years from $76 to $56 per capita. As a result of this reduction in state aid, property owners can expect a 1.6% increase in property taxes in 2000. (2) Mr. Feller stated the City anticipates receiving $143,750 in Federal COPS FAST grant funds in 2000. The City has been receiving COPS grants for five years, which has since aided in the funding of 8 Patrol Officers. (3) Councilmember Ryan questioned why the State aid for police had decreased in 1999 from 1998. Mr. Feller explained that three years ago the State of Minnesota's costs relating to pensions for Highway Patrol Officers and DNR employees were increasing. As a result, the State funded their pension shortfalls with funds that are normally dedicated to provide aid for pension (PERA) costs to Counties and Cities for their public safety employees. (4) Mayor Zaun questioned why General Fund budget does not include State aid for street maintenance in 2001. Mr. Feller explained that the 2000 Capital Improvement Plan anticipates issuing State-aid bonds for the following construction projects: Pilot Knob: CR46 -170th Street, CR46: CSAH 31 (Pilot Knob) to TH 52, Cedar Avenue: Dodd - CSAH 70, and I-35/185th Street Bridge, ramps and roads. The State of Minnesota requires cities, that issue State-aid bonds, dedicate all future state-aid street maintenance funds towards the interest costs associated with the bonds until retired. CHARGES FOR SERVICES -GENERAL GOVERNMENT No questions or comments. CHARGES FOR SERVICES -PUBLIC SAFETY No questions or comments. (continued) Council Budget Work Session • Tuesday, October 12, 1999 Page 3 Discussion: (continued) CHARGES FOR SERVICES -PUBLIC WORKS (1) Mr. Feller noted engineering fee revenue will decrease in 2000 approximately $345,000, primarily as a result of the recently passed moratorium. Mr. Erickson estimates that 15 subdivisions will be forthcoming upon conclusion of the moratorium yielding approximately 2,000 lots. Of the 15 subdivisions, 12 will be mixed use or planned unit development projects, (multi-family/medium density housing), and the remaining 3 subdivisions will be of single-family use. CHARGES FOR SERVICES -PARKS AND RECREATION (1) Mr. Feller asked Council Members to consider two policy changes to the current Park and Recreation policy and fee structure. Lakeville Residents are given priority registration on recreation programs Non-resident fee is proposed . Mr. Erickson explained that 1 in 5 program participants are non-residents, and Lakeville residents fully subsidize the administrative costs associated with these programs, and non- residents do not contribute towards these costs yet pay the same program fee. Mr. Erickson requested Council to provide feedback to staff regarding these proposed policy changes. Mayor Zaun emphasized that these changes need to be communicated with the school districts and surrounding townships so that non-resident students. attending Lakeville schools understand they will be charged anon-resident fee. Mr. Erickson would like to bring forth a policy change later this year, upon recommendation of the Parks and Recreation Committee, requesting City Council to consider policy changes. Further, should the City Council decide to adopt these changes, it is proposed the changes be published in the upcoming parks and recreation winter brochure to be effective for the spring program implementation. COURT FINES, MISCELLANEOUS, AND INTERFUND TRANSFERS (1) Mr. Erickson indicated that since the recent state sales tax rebates were issued , an increase in cash flow from court fines has resulted. State law requires any outstanding traffic tickets/court fines or child support payments be satisfied first before any rebates are paid to the recipient. • (continued) Council Budget Work Session Tuesday, October 12, 1999 Page 4 Discussion: (continued) COURT FINES, MISCELLANEOUS, AND INTERFUND TRANSFERS (continued) (2) Mr. Feller indicated that Nextel expressed an interest in constructing a 12' x 20', air conditioned, fenced-in building at either the Dakota Heights water tower site or the Cedar Highlands area to house their PCS communications equipment. Nextel has tentatively agreed to the building conditions set forth by the City and to pay an annual sum of approximately $17,000 per year in fees. These fees would collected by the General Fund. (3) Mr. Feller explained that subsequent to the adoption of the preliminary budget, notice was received by the City of an impending increase in employee health insurance costs in 2000. Mr. Feller further noted that this is the largest single health insurance increase the City has ever sustained. The total city wide health insurance increase is anticipated to be $105,000, of this increase the General Fund will incur approximately $83,000. Mr. Feller outlined a change in hiring dates for new positions which offsets this hospitalization increase. Mr. Erickson explained that for the first time in history City employees have new levels of insurance from which to choose from. One. choice would be to opt out from coverage all together and receive $50.00 per month. A second choice would be coverage for either an . employee and child, or an employee and spouse. The city's current health insurance coverage is sponsored by the LOGIS consortium. MAYOR AND COUNCIL (1) The budget provides $5,000 funding for afollow-up to the 2000 community survey. Mayor Zaun suggested the funding remain and the specifics to be discussed when the time approaches. (2) Mr. Feller noted that funding for the I-35 Alliance dues have been moved from the Community Development budget over to the Mayor and Council budget. Mr. Erickson thought that accounting for this expenditure in the Mayor and Council's budget was consistent with the Council's policy of association dues for various lobbying efforts. PUBLIC COMMUNICATIONS (1) The 2000 preliminary budget includes hiring apart-time (20 hours per week) Public Information Specialist position, who will assist the Communications Coordinator with public communications. Upon further review of the position responsibilities, Mr. Erickson requested Council to consider increasing the positions weekly hours by 4. Further, the increased hours would not require a significant amount of additional funding. (continued) Council Budget Work Session Tuesday, October 12, 1999 Page 5 Discussion: (continued) PUBLIC COMMUNICATIONS (continued) (2) Mayor Zaun indicated he has received complaints regarding the City's web site's lack of expanded or technical information, i.e., conditional use permits. Mr. Erickson explained that to accommodate this type of expanded information on the web site is cost prohibitive. Mr. Erickson further stated that based on comparison, the City's web site is the best of all cities in Dakota County. Mr. Erickson stated that the Council could address this as part of the City's Comprehensive Communication Plan at the December work session. Councilmember Sindt suggested providing a fax number or E-mail address on the web site as a means of obtaining further information. The City Hall fax number and E-mail address is provided on the City's web site. Councilmember Luick asked if the City's web site is connected to any realtors as a hot button when looking for real estate. Mr. Luick suggested this may be an excellent way to create inroads for groups or individuals seeking community services or a particular type of real estate using a hot link. (3) Councilmember Sindt asked if the City would incur any costs regarding the 2000 census. Mr. Erickson stated that based on the information received thus far, the city would not incur any direct costs. Erickson further stated the Federal Government is somewhat behind in the census process. CITYADMINISTRATION No questions or comments. CITY CLERK No questions or comments. LEGAL (1) Councilmember Sindt asked the Council to consider discussing the possibility of looking for a different attorney to attend Council meetings, but not necessarily a different law firm. Councilmember Luick asked what is the process for changing law firms. Mr. Erickson explained that request for proposals (12FP's), followed by City Council interviews is the method used for selecting a new City Attorney. (continued) Council Budget Work Session Tuesday, October 12, 1999 Page 6 Discussion: (continued) COMMITTEES AND COMMISSIONS (1) The City's Liquor Fund provides $10,000 per year for fireworks along with donations of $7,000 from both Alcorn Beverage and the Lakeville Lions for a total fireworks budget of $17,000. To have a competitive fireworks show with surrounding communities, Mr. Erickson asked Council to consider increasing the funding $3,000 by the City for the annual Pan- O-Prog 4th of July fireworks show. C O MM UNI T Y D E yE L O PME NT (1) The budget provides for customer service training in 2000, training is held every other year. Mayor Zaun suggested that since some employees may miss the main training class, an ongoing mini-session should be offered. INSPECTIONS (1) Mr. Feller indicated that the Inspection Department has recently completed it's LOGIS upgrade to a computerized scheduling system that was previously done by hand. The new system will provide inspectors. with a schedule. they can now print out on their own, also be provided with any special property information that until now had to be manually retrieved. Councilmember Ryan asked if this was the type of system where people would call in and listen to a touch-tone recorded message. Mr. Feller explained that this is an internal scheduling system that will greatly speed up the scheduling process, and outside people calling inspections as always would speak with a departmental employee. (2) In an effort to provide identification to Inspection and Recreation employees in the field, those staff have requested the City provide or subsidize City of Lakeville logo shirts and jackets to those employees working outside City Hall. Mr. Erickson asked Council to consider a clear policy issue and provide feedback regarding the provision and use of City of Lakeville logo clothing worn by all City employees. Councilmember Ryan commented that due to the various seasons in Minnesota, employees would need many types of clothing to accommodate the various weather changes. Mr. Ryan further commented that ID tags would accomplish the same objective. Councilmember Mulvihill also commented that identification is a very important part of public safety. • (continued) Council Budget Work Session • Tuesday, October 12, 1999 Page 7 Discussion: (continued) INSPECTIONS (continued) Lakeville Clothing: Mayor Zaun commented that Lakeville clothing worn in social occasions after business hours could potentially pose an image problem for the City. GENERAL GOVERNMENT BUILDING (1) Mayor Zaun asked if any City Hall computer connection is proposed to the new Lakeville Library. Mr. Erickson explained that the library on Galaxy is ready to connect with City Hall via a wide area network (WAN), however the Lakeville Library is not ready at this time. Mayor Zaun asked staff to find out the number of computer work stations that will be installed at the new Library. M.I.S. Coordinator, Danny Barth contacted the library and was informed that there will be 8 computer workstations available to the public that will have Internet access. • FINANCE No questions or comments. HUMANRESOURCES No questions or comments. INSURANCE (1) Mr. Feller commented that claims remain very low and that the City has a very good claims experience ratio. CABLE Ty FUND (1) Mayor Zaun asked what is the current and future status of the puppet contract. Mr. Erickson explained that the current contract continues through 2000, and the contract renewal will be re-evaluated at that time. Mayor Zaun suggested that if the puppet program needs to continue, the Cable Coordinator should seek outside endowments or funding from local businesses or private organizations. • (continued) Council Budget Work Session Tuesday, October 12,1999 • Page 8 Discussion: (continued) ENVIRONMENTAL RECYCLING FUND No questions or comments. DRUG ENFORCEMENT FUND (1) Mr. Erickson explained that the South Metro Drug Task Force is composed of all cities in Dakota County with populations over 5,000, and is divided between the East and West division. Lakeville, Burnsville, Apple Valley, Eagan, Farmington, and Rosemount are in the west division and Cities such as West St. Paul and South St. Paul are in the East division. Mr. Erickson further explained that the State of Minnesota is currently promoting the joining of the two divisions under one roof ,however the City of Lakeville prefers they remain separate. Erickson stated that the two divisions have distinct cultural differences in regard to their individual drug and gang problems. In the event the two divisions joined, Mr. Erickson expressed a major concern over Lakeville's assigned Officer conducting drug enforcement activities in cities such as South St. Paul. • EMPLOYEE BENEFIT FUND (1) Mr. Feller stated the purpose of this fund is to provide severance benefits to retiring or employees leaving the City of Lakeville. The General Fund proposes to transfer $40,000 per year to maintain the actuarial soundness of this fund for future years. Mr. Erickson explained that in 1999 and previous years the General Fund transferred like funds to the Municipal Reserves Fund for developing the City's self-insurance Excess Liability Fund. As of December 31, 1999, the City's self-insurance Excess Liability Fund has adequate funds to meet it's self-insurance objective and will no longer require transfers from the General Fund. GEOGRAPHIC INFORMATION SYSTEM FUND (GIS) (1) Mr. Feller stated the 1999 G.I.S. fee is currently $33.50 per parcel of record and is proposed to increase to $34.50 in the year 2000. The preliminary GIS budget inaccurately states the 1.999 fee as $35.00. SURFACE WATER MANAGEMENT FUND (1) Mr. Feller listed the major program activities proposed for the year 2000. (continued) Council Budget Work Session Tuesday, October 12,1999 • Page 9 Discussion: (continued) SURFACE WATER MANAGEMENT FUND (continued) (2) Councilmember Sindt questioned the effectiveness of the treatment of Valley Lake which utilizes a special barley straw bail method of treatment. Mr. Erickson responded that positive comments have been received from residents, and swimmers have reported an improved water clarity. Mr. Erickson noted that Mr. Steve McComas of Blue Water Science is scheduled to provide a progress report at the November 1, 1999 Council meeting. OAK WILT SUPPRESSION GRANT FUND No questions or comments. ENHANCED 9I1 FUND No questions or comments. ECONOMIC DEVELOPMENT REVOLVING LOAN FUND (1) Mr. Erickson asked Council to reflect on the various uses that are available for the capital in this Fund. Mr. Erickson explained further that the funds could be used for: • Matching grants for downtown businesses to re-establish their building fagades in a historic context • New business startup • Business relocation DOWNTOWNSPECIAL SERVICE DISTRICT FUND No questions or comments. • (continued) Council Budget Work Session • Tuesday, October 12,1999 Page 10 Closing: FUTURE COUNCIL BUDGET WORK SESSION Prior to adjournment, Councilmembers discussed the scheduled October 28, 1999 budget work session date and agreed to change it to 7:30 A.M., Tuesday, October 19, 1999. Councilmembers asked Mayor Zaun to call a Special Meeting for this new date. FUTURE COUNCIL WORK SESSION The Council has a work session scheduled for 5:00 P.M., Monday, November 29, 1999, Councilmembers discussed the dates and tentatively agreed to change the date to November 2, 1999. This change will need to be placed on the next regular Council Meeting agenda for action and posted in the Messages page. • This work session adjourned at 7:15 P.M.