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HomeMy WebLinkAbout11-27-00 WS a~aa xo. ~a COUNCIL BUDGET WORK SESSION MONDAY, NOVEMBER 27, 2000 • 5:00 P.M. In attendance: Mayor-elect Robert Johnson, Council members Betty Sindt, Lynette Mulvihill, David Luick, Mark Bellows, .and Council member-elect Laurie Rieb. Absent: Mayor Duane Zaun. Also in attendance: Robert Erickson, City Administrator, Dennis Feller, Finance Director, and Brian Kempa, and David Lang, Senior Accountants: Discussion: Mayor-elect, Council and Council-elect members reviewed the following outstanding issues from the November 13, 2000 budget work session and the following comments ensued: Minutes: Council budget work session (November 13, 2000): No questions or comments. • Should the City sell advertising on it's web page: Mayor-elect Johnson stated advertising charges would be a beneficial way to offset web page costs. Both Council members Mulvihill and Luick expressed an overall level of concern with selling advertising. Robert Erickson suggested that this could be a good topic to discuss at • the Council retreat and recommended that further research should be conducted on this issue; (i.e., are any. other cities selling advertising, and if so, what are their guidelines. Also, are there any potential legal liabilities). • Messages page: Mr. Erickson indicated the City is currently waiting for a letter from This Week agreeing to the page positions of the City's legal ads and the adjacent facing Messages page. Council member Mulvihill stated that since the newspaper's prime locations are no longer available that the City should continue the Message with This Week but evaluate readership in one year. Mr. Erickson suggested that this would be a good community survey question to find out how readers are responding to the new page locations. Council member Bellows ultimately questioned whether the content of the Messages page justified a weekly publishing. Bellows suggested that offering the Message page on a monthly basis with greater substantive content (possibly with more than one page) may improve readability. Bellows also suggested the Messages page may be an excellent feed back forum for presenting important issues facing the City and asking citizens to express their views on the what is important to them. Bellows further indicated this would be a way to reduce citizen criticism regarding the perception that the Council is unapproachable. • • Messages page: (continued) Mr. Erickson stated that the Messages has been on the back page of the local newspaper for • more than a decade and has served the purpose of informing citizens with important and time sensitive issues facing the City and the City Council. Mr. Erickson further stated the Messages page is just one of the many publications used by the City and provided some examples. Erickson also suggested the Council may wish to consider sharing the Messages page section on an alternating weekly basis with the School District's Forum page as a way to share costs. This would also provide a working partnership with the District. Council member Mulvihill stated that while the Messages page presented issues in a timely way, it's time to look at other alternatives due to the page relocation. Mayor-elect Johnson stated the general purpose of the Messages page was to inform the citizenry and was not intended to be a summary or an opinion gathering sheet. Johnson further stated the Messages page has historically worked very well with respect to informing residents. Mr. Johnson also stated that the City and School District have different policy and fiscal objectives and therefore does not favor activity, such as sharing the Messages page with the school district, which may result in inaccurate public perceptions of those objectives. Council member Sindt expressed concern related to sharing the Messages page with the School District, since there might be citizen confusion over the defined duties and responsibilities of the City Council and the School Board. • Financial incentives study: Mr. Erickson indicated a letter has been received from the Chamber of Commerce in support of the study. a Audit Services Request for Proposal: Mr. Erickson requested Council authorization. to inters is _-.=rthe principal and in-charge xccarrntant,.for.Malloy Montague_K<..F-r~~-~Ra~cz~~v~,'--~ ~.o~'tic:;(,~'~tIKR)~:MKR..:ha~c3.... ,, submitted the second lowest bid proposal fore-auditing services. Mayor-elect Johnson inquired as to any potential criticism in selecting the second lowest bidder. Mr. Feller stated that the City is not bound by low bid when selecting professional services. Further, it is an accepted practice for municipalities to periodically change auditors. The City Council concurred with staff request to interview MKR and provide a recommendation. Mr. Erickson sought feedback from the City Council regarding the upcoming appointments the I-35 Solutions Task Force. Council members favored the reappointment of Karl Drotning. Discussion: Dennis Feller provided the Council with an overview of the 2001 budget relating to General Fund Expenditures (Police through Recreation), Capital Projects Funds, and Enterprise Funds. 1. One new CPSO position is included in the proposed Police Department budget financed by a COPS grant in the amount of $28,732 commencing in March 2001. The position will have oversight responsibilities relating to Park Rangers. 2. Civil defense sirens are proposed to be installed at King Park and relocation of the siren near the intersection of County Road 5 and Interstate 35. • 3. Mr. Luick asked if the Police Reserves should have a used squad car assigned for their needs. The Police Chief indicated that the Reserves should continue to utilize the Suburbans in order to maximize vehicle efficiency. He recommended, however, that a "Police Reserve" magnetic sign be purchased and available for the Reservists use. The sign could be attached to the side of the Suburbans thereby providing recognition relating to Reservist use. 4. The per capita expenditures for the Police Department are $100 compared to the 1998 state average of $104 per capita. 5. The proposed Fire Department budget includes appropriations to increase the Fire Inspector hours from 28 hours to 40 hours commencing in April 2001. However, the staff recommended and the Council concurred that the proposed budget be amended such that the Fire Inspector becomes full-time effective January 2001. 6. Fire Department budget also includes appropriations for a Public Information Officer who would provide immediate information to the media during major fire events. An Assistant Training Officer position is also proposed to provide greater depth of training to personnel especially with respect to rookies and rapid changes in firefighting technology. The Fire Department expenditures are $17 per capita compared to the state average of $34 per capita. 8. The Engineering Department provides for one new additional engineering position for 2001. • Preliminary plats have been submitted for approximately 2,700 residential dwelling units. Tl`e~ significant number of developments vvil~ i;~crease d~tnand-for plat reviews, engineering i??snection.~ ardove~sight of infrastructure,.cGn.~~-4ucti~:%l•ho:~e~~i~3eerin~.nosition will help provide assistance in light of the increasing demands for traffic (pedestrian) studies. 9. The Street Department provides for one Street Maintenance Mechanic. The Street Department Budget also provides for the leasing of a grader. The City Council recently approved the grader lease with Wells Fargo. A proposed 2001 Street Department budget also provided $4,200 for grader tires. Since the City is leasing a new grader, the staff is recommending deleting the $4,200 appropriation for grader tires from the proposed 2001 budget. 10. Mr. Feller reviewed the list of major maintenance projects. A consultant recently prepared a report that indicated the Bunker Hill tennis courts need to be replaced rather than resurfaced. As such, the staff recommended deleting the appropriations for resurfacing of the Bunker Hill tennis courts, as the courts are approximately 25 years old. Minor repairs would be made in order that the courts would be functional during the coming year. Following discussion by council members, the City Administrator recommended and the City Council concurred that soil borings should be taken immediately to determine the condition of the base material. Mr. Erickson further recommended that at such time as the proposed apartment project adjacent to Southfork comes to fruition thereby generating unanticipated Park Dedication fees, the City Council may wish to revisit the issue of financing the tennis court and basketball court reconstruction. c: 11. Mr. Feller reviewed the proposed 2001 Recreation Budget including the Senior Center capital outlay request. Council member Sindt requested Staff to consider lighting improvements for the Senior Center Library. 12. The proposed 2001 General Fund Arts Center Budget includes apart-time secretary starting in April 2001. The staff requested and the Council concurred to provide additional appropriations to start the secretary position effective February and an additional $320 for the fall Arts Center Board retreat. 13. In order to maximize grant opportunities, arts programmatic costs and associated revenues will be accounted for in a SO1.C.3 organization. The law firm of Rider, Bennett has donated their legal services to establish such an organization. The City Council recently approved a grant application to the Minnesota Arts Council to hire a professional consultant to assist with the fundraising endeavors. 14. Mr. Feller reviewed the Equipment Fund budgets. The staff is recommending deleting replacement of the Sergeants and SRO vehicles due to low mileage. The Police Chief supported deleting the two vehicles from the proposed 2001 budget. 15. Equipment Fund budget also provides for acquisition and installation of lap tap computers in its squad cars. Lap tops are financed by a $109,416 Federal COPS MORE grant. The MDT leases from the County expire in April 2001. 16. Staff is also recommending deleting the digital camera for investigations in the amount of $829. The Liquor Fund has recently donated a digital camera to the Police Department. 17. Mr. Feller also reviewed the proposed Fire, Street and Park Department equipment acquisitions. The staff recomrfnended transferring the appropriations for the Street Department.l,a6khoe;,and~~fuel;st~rage. ~~nk.frQm 2001- ta'040,> , 18. Equipment Fund acquisitions are financed with Certificates of Indebtedness with the exception of police cars and related equipment which typically have a useful life of approximately two years. 19. Mr. Feller reviewed the proposed Building Fund budget. A budget adjustment is proposed in the amount of $94,665 for the transfer from the Liquor Fund to the Building Fund as a result of the recent Council approval of construction contracts relating to the City Hall expansion/remodeling project. 20. The proposed budget includes installation of security glass in the Police Department lobby due to police support staff safety concerns. The Council directed staff to research the hours of operation and list of incidences that prompted the request for the security glass. 21. The proposed 2001 Building Fund budget includes $22,000 of appropriations for the preliminary design of Fire Station No. 4. Mr. Erickson stated that Fire Station No. 4 would be located adjacent to the Water Treatment Facility. 22. Mr. Erickson stated that auto allowances have not been adjusted for two years and respectfully requested City Council consideration of an increase for the coming year. The IRS has announced an increase in the mileage reimbursement from $.325 per mile to $.345 per mile effective January 1, 2001. Mayor-elect Johnson stated that the auto allowance should be adjusted directly proportional to the IRS mileage rate reimbursement. 23. Mr. Feller reviewed the proposed Park Development Fund budget. Staff recommended adjusting the budget by approximately $100,000 for the 205"' Street trail improvements. The project is proposed to be financed by the $37,561 transfer from the escrow fund and deleting the Greenway Shelter building project in the amount of $65,000. Mr. Erickson stated that the Greenway Shelter building is proposed to be constructed by Hickory Tech at no cost to the City. The building would be immediately adjacent to the Hickory Tech radio building and Well No. 15 at the intersection of Ipava Avenue and Indiana Avenue. 24. The Liquor Fund sales are projected to be $9.2 million in 2001 thereby resulting in a net income before transfers of $857,830. Budget includes proposed transfers to the General Fund of $88,841 for operating costs, to the General Fund in the amount of $37,600 for the DARE Program, to the Water Trunk Fund in the amount of $82,572 for the City's share of meeting rooms and temporary ambulance facility at the Water Treatment Facility and a revised transfer to the Building Fund in the amount of $744,665. 25. Mr. Feller reviewed the Water and Sanitary Sewer Fund operating budgets. There are no proposed rate increases in water or sanitary sewer rates. Lakeville residents served by the Burnsville water system pay the same rates as other Lakeville residents. MCES sanitary sewer rates have decreased due to their endeavors to reduce organizational costs. 26. Mr. Feller reviewed the proposed tax levy. Mr. Erickson pointed out that Lakeville has a tax levy of $199 per capita, which is the lowest when compared to other MLC cities. He also stated other MLC cities are able to maintain a low tax capacity rate because of their significant commercial property market values. Commercial market values per square foot are two to three times more than the market values per square foot of industrial properties. There area umber-.of;si$nifac~,=t>•carn~-nerc4al nroPcts.that will be announced in_the com~~ig months. As a result, Lakeville's future tax base is projected to change with increased commercial development. The net result will be lower tax rates for Lakeville residents. Meeting adjourned at 8:45 p.m. Respectfull Submitted Dennis Feller Finance Director