HomeMy WebLinkAbout10-29-01 WSCOUNCIL BUDGET WORK SESSION
MONDAY, OCTOBER 29, 2001
5:00 P.M.
In attendance: Mayor Robert Johnson, Council Members Lynette Mulvihill, David Luick,
Mark Bellows, and Laurie Rieb.
Also in attendance: Robert Erickson, City Administrator, Dennis Feller, Finance Director,
John Hennen, Assistant to City Administrator, Brian Kempa, Senior Accountant, and Judi
Hawkins, Deputy Clerk.
ITEM NO. 1: REVIEW OF 2002-2003 BUDGET.
Mr. Erickson stated the City recently sold a parcel of land located at the southwest corner
of Flagstaff Avenue and Dodd Boulevard to McLeod USA. Mr. Feller indicated that
McLeod has since re-assessed their corporate plans and indicated they. might consider
selling the property back to the City at a substantial discount. If the City Council and
McLeod mutually agree to pursue the transaction, the parcel could be financed from the
Storm Sewer Trunk Fund. The property could be the site of a future holding pond.
Discussion:
Dennis Feller provided the Council with an overview of General Fund Revenues, General
Fund Expenditures (Mayor and Council through Insurance), and Special Revenue Funds.
REVENUES
(1) Mr. Feller indicated there are no proposed fee increases pertaining, to licenses, however
2002 revenue reflects the proposed two-year dog license.
(2) Mr. Erickson noted that the on-sale liquor license revenue anticipates four new
restaurants with liquor licenses due to the Timbercrest development. Council member
Rieb inquired as to what the limit on the number of licenses the City could issue. Mr.
Erickson explained that the State of Minnesota regulates the number of on-sale liquor
licenses a city may issue based on their population. Based on State law, the City is
currently authorized to issue up to 181icenses of which seven have been approved.
(3) Mr. Feller stated that the 2002 commercial/industrial building permit revenue might be
overstated due to companies obtaining their permits earlier than expected (2001) to
avoid paying the 2002 increased cost in sewer area connection (SAC) charges collected
by Metropolitan Council Environmental Services (MCES). Mr. Erickson added that
• 2001 townhome permits issued will be at or near projected levels. As such, the 2001
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October 29, 2001
• estimated revenues might need to beincreased with a corresponding decrease. in the
estimated 2002 revenues.
(4) Mr. Feller discussed a recent state legislative law change as it relates to the building
code. Beginning in 2003, the City will be required to annually report, to the Minnesota
Department of Administration, information concerning 2002 building fees collected
from builders, developers, and subcontractors.
(5) A "site plan review fee" will be proposed to replace "building permit fees" for certain
home improvements relating to sheds less than 120 square feet, fences less than 6 feet
high, and above ground swimming pools less than 5,000 gallons, effective January 1,
2002. Mr. Erickson further clarified that the "site plan review fee" is not a new fee, but
a change in the regulatory structure.
(6) Mr. Erickson commented that the Arts Center had a very successful grand opening and
was appreciated by all the guests in attendance. Mr. Erickson asked Council to give
consideration to holding an annual event (anniversary) utilizing a transfer from
the Liquor Fund. Mayor Johnson suggested this would be a possible item to
discuss at a future work session.
• (7) Mr. Erickson informed the Council of a downward trend being experienced in youth
(8) The proposed budget projects interest revenue of $250,007 based on the assumption of
the city earning 4.50% interest on investments. Mr, Feller indicated that interest rates
continue to decline and the projected interest revenue for 2002 might need to be
reduced accordingly. Mr. Feller stated a revised interest revenue estimate would be
determined prior to the final budget adoption in December. Mr. Erickson noted that
this potential revenue reduction would be reflected in the fund balance.
recreation program participation. Mr. Erickson further explained that the city is
competing with churches, health clubs, day care centers, and community education
organizations for youth participation in recreation activities. Mr. Erickson assured the
Council, the city would continue to meet the recreation needs of the community, based
on demand. Since youth recreation participation. has declined, staff recommends
reducing the size of the seasonal brochure accordingly.
MAYOR AND COUNCIL
(9) Mr. Feller noted that the proposed budget includes an increase in Council member's
miscellaneous accounts from $1,100 to $1,150 each. The .increase (first since 1997) is
proposed to offset the cost of .Council members using their personal autos on Official
City business.
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City Council Work Session Minutes
October 29, 2001
PUBLIC COMMUNICATIONS
(10) Shade's Landing currently maintains the City's web site. The proposed budget
provides for increasing the Public Information Specialist hours from 28 hours per
week to 40 hours per week in order for the City to develop and maintain a secure web
site.
(11) Mr. Erickson commented that upon obtaining the results of the community survey,
the Council would revisit the issue of continuing its community information
endeavors utilizing the Messages Page or newsletter at a future work session.
CITY CLERK
(12) Election Head Judges are currently compensated $7.50 per hour, and Judges $7.00
per hour. Mr. Feller stated the proposed budget includes an increase in pay for
Election Head Judges and Judges by $1.00 and $0.50 per hour, respectively.
COMMITTEES AND COMMISSIONS
{13) The proposed budget originally requested moving the Environmental Affairs
• Committee budget from the General Fund to the Surface Water Management Fund.
After subsequent review, it is recommended that the committee budget remain within
the General Fund.
(14) Mr. Erickson commented on the annual $8,000 donation received from Alcorn
Beverage for Pan-O-Prog. Mr. Erickson explained that the majority of the donation
was appropriated towards the annual 4`h of July fireworks display. Mr. Erickson
recommended the City endeavor to obtain a commitment from Alcorn towards
donating to future Pan-O-Prog events.
(15) The annual advisory appreciation dinner has traditionally been held at Brackett's
Crossing Country Club. Mr. Erickson asked Council to consider hosting the annual
event at the Arts Center in 2002 with entertainment. Mr. Erickson suggested catering
a buffet dinner. Mayor Johnson asked staff to research the.cost of hosting this
event at the Arts Center, and discuss at a future work session.
FINANCE (Information Systems)
(16) Mr. Feller stated certain computer hardware and software capital outlay are proposed
to be purchased in 2001 instead of 2002. Mr. Feller stated a 2001 budget amendment
would be required approving the purchase of this equipment. Council member
• Mulvihill asked staff to provide a list of these items. The proposed budget
document lists these items under the Capital Outlay tab, on page D-3.
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October 29, 2001
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ENVIRONMENTAL RECYCLING FUND
(17) Council Member Mulvihill inquired about the collection and recycling of boxboard
as part of the curbside recycling program. Assistant to the City Administrator John
Hennen indicated boxboard is not required to be collected by waste collectors at this
time, and typically a requirement such as this would come from Dakota County. Mr.
Hennen indicated that both Waste Management and Prior Lake Sanitation collect
boxboard.
DRUG ENFORCEMENT FUND
(18) The Drug Enforcement Fund was established in 1990 to account for grant revenues,
sale of confiscated assets, and one Police Officer assigned to the South Metro Drug
Task Force. 'Mr. Erickson recommends closing this fund and account for these
activities in the General Fund to accurately reflect the total operating costs of the
Police Department.
G.I.S. FUND
• (19) Mr. Feller stated a 2001 budget amendment would be required approving the
purchase of the 60" color plotter. The transaction includes a free color laser jet
printer and trade-in of two existing (14" and 36") plotters.
SURFACE WATER MANAGEMENT FUND
(20) Council Member Luick asked staff to research the availability of municipal
water quality program grants from Black Dog Water Management
Organization.
OAK WILT SUPPRESSION GRANT FUND
(21) Subsequent to the proposed budget submission, the City was recently awarded a
$10,000 oak wilt suppression grant from the State of Minnesota Department of
Natural Resources. Mr. Feller indicated the proposed budget requires an adjustment
in 2002 to reflect the grant revenue and related expenditures.
ECONOMIC DEVELOPMENT REVOLVING LOAN FUND
(22) Mr. Feller stated the proposed budget provides funding for the acquisition,
demolition, and development of the former Lakeville Cleaners parcel. Mr. Luick
inquired if Marquette Bank is participating financially. Mr. Erickson indicated City
City Council Work Session Minutes
October 29, 2001
i 1 i i ' ' i n of the site with the ex ectation that
Attorney J m Wa ston s pursu ng acquisrt o p
Marquette Bank (Wells Fargo) will ultimately fund (50%) and accept ownership.
ADDITIONAL DISCUSSION ITEMS:
(23) Mr. Feller noted that the Truth-in-Taxation hearing is proposed to be scheduled for
the regular council meeting on December 17, 2001, at which time the Council could
adopt the proposed budgets and the fina12002 tax levy.
(24) Council Member Luick asked Council to consider a policy approving staff
attendance at national conferences once every third year. Mr. Erickson provided
the Council with a historical background on existing city policies whereby
Department Directors may only attend national conferences on an every other year
basis. Council. member Rieb asked. staff to provide a list at the next. Council
work session indicating the cost of staff to attend national conferences.
ITEM NO.2. REVIEW PROPOSED 2001 COMMUNITY SURVEY QUESTIONS.
Council Members had received a proposed list of questions from Dr. William Morris of
. Decision Resources. Assistant to City Administrator John Hennen informed Council
Members that the number of questions has been reduced by about 30 percent from the 1999
survey (220 to 159). Of the 159 questions proposed to be asked, 18 were submitted by
Project Northland and relate to underage alcohol use. A conference call is scheduled with
Dr. Morris on October 30`h
Council Member Mulvihill had concerns about asking a question regarding a community
center. She felt that if the issue were raised, residents would expect it to become a reality.
City Administrator Erickson stated that he has received many inquiries from the public
about when a facility will be built and believes that the public/private funding aspect needs
to be emphasized. Council Members also felt it was important for people to respond to
whether they. would be willing to incur some expense for the facility, not just whether they
would want. one.
It is Decision Resources' goal to have the survey completed before Thanksgiving. Council
Member Bellows commented that previous surveys .have been too lengthy and taken too
much of respondents' time. He feels it needs to be shortened to not more than 20 to 25
minutes.
Other comments and questions from Council Members:
Question #4 should be revised to read, "As things now stand, how many more years do you
• expect to live in Lakeville?"
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October 29, 2001
Question #33 regarding animal control may give the impression that animal control has a
broader range of services than what they actually have.
Question #37 regarding operating carbon monoxide detectors does not ask about smoke
detectors because data is already available.
Question #58 regarding storing of recreational vehicles on an individual's property can be
used as an educational tool by adding additional information.
Question #88 regarding phosphorus could be expanded to ask if people would like to see a
local or statewide ordinance.
Question #110 regarding shopping in the downtown should include Heritage Commons.
Under the section regarding public transportation, people should be asked under what
circumstances or conditions would they be willing to pay for bus transportation. (If
Lakeville and Prior Lake joined efforts to provide a bus service would you be willing to
pay. X amount of dollars per year for the service?)
Council Members were asked if they feel there is a need .for a separate survey of what
residents would like offered regarding recreation programs. Council Members suggested
that the marketplace and popularity of programs have been good indicators and a separate
survey is not necessary. Council Member Luick suggested an awareness question
regarding the Arts Center to find out if residents know about it or plan to attend upcoming
events.
It was also suggested that an education process could be started regarding the location of
an east/west corridor.. It was concluded that citizen opinion would not change the need to
improve the existing infrastructure.
Council directed staff to discuss their suggestions and comments with Dr. Bill Morris
of Decision Resources and to proceed with the 2001 Community Survey.
ITEM NO.3. DISCUSS ADVISORY COMMITTEE AND COMMISSION VACANCIES.
Council Members discussed the duplication of duties which exist between the
Environmental Affairs Committee and the Parks and Recreation Committee, such as issues
relating to trails, wetlands, open space, conservation easements and ponding. Council
Members feel the review of such issues could be accomplished more efficiently by
combining the two committees. It was suggested that the Mayor send a letter to current
committee members asking if they would be interested in continuing to serve if the
committees were combined.
Council directed staff to prepare a list of goals and responsibilities for a combined
• Environmental Affairs and Parks and Recreation advisory committee to be called the
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October 29, 2001
Parks and Natural Resources Committee. Council directed staff to place the item on
a future work session agenda for further review and discussion.
ITEM NO.4. OTHER BUSINESS.
City Administrator Bob Erickson informed Council Members that progressive enforcement
of the November through April "No Parking" ban has begun with the Police issuing
warnings to vehicles parked on the street during restricted hours.
Council Members discussed setting a work session to address further budget issues.
November 26, 2001 at 6:30 PM was suggested.
Council directed staff to add setting of a work session to the next regular Council
agenda for consideration.
ITEM NO. S. ADJOURN.
The meeting adjourned at 8:15 PM.
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Respectfully submitted,
Judi awkins, Deputy Clerk
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