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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 rt City Council Work Session Minutes. 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. n ~J 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. 3 City Council Work Session Minutes October 29, 2001 • 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?" City Council Work Session Minutes 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 <b .. City Council Work Session Minutes 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. • Respectfully submitted, Judi awkins, Deputy Clerk • 7