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Home My WebLink About11-23-09 WSIn attendance: Staff: The meeting was called to order at 6:00 p.m. ITEM #1 2010 Budget Review Minutes Lakeville City Council Work Session November 23, 2009 Mayor Holly Dahl Council Member Mark Bellows Council Member Laurie Rieb Council Member Kerrin Swecker Council Member Kevin Miller Steve Mielke, City Administrator Dennis Feller, Finance Director Dave Olson, Community and Economic Development Director Judi Hawkins, Deputy City Clerk Finance Director Dennis Feller highlighted proposed budget adjustments. These budget adjustments were made based on the assumptions that the Council wishes to remove the franchise fee revenue from the budget and adopt the tax levy as originally proposed. One exception is that the levy for debt could be reduced with the upcoming issuing of bonds on December 7 to refinance outstanding debt at a reduced interest rate, which could result in a cost savings of up to $100,000. The tax levy includes a levy increase to offset the loss of Market Value Homestead Credit. Budget amendments include the rebate from DCC, although there is a corresponding increase in expenditures; elimination of the franchise fee; addition of a Youth Sports surcharge; and reductions of expenditures in employee personnel costs. Some Park Department major maintenance has been deleted from the budget including seal coating of trails and parking lots. Other miscellaneous smaller items of approximately $24,000 have also been eliminated, including the Council goal setting meeting. As proposed, expenditures will exceed revenues by approximately $222,000, which will be made up with the fund balance. Several road construction projects have been eliminated or are being pushed to a future year, as are upgrades to the cable TV facility. Questions asked by Council members at the last budget work session were listed and answered in greater detail. These included improvements to Fire Station #1, Chemical City Council Work Session Minutes November 23, 2009 Page -2- Awareness program at the schools, and education efforts by Police and Fire Departments. Under Economic Development, a memo from David Olson described the vacancy rate in Lakeville retail centers, which shows that Lakeville is actually better than the average in the metro area. Council Member Bellows suggested that the Council have a philosophical discussion regarding core basic services, which he feels is the basis for any future possible budget cuts. City Administrator suggested that since the upcoming budget adoption deadline is near, a discussion be held in 2010 regarding core services vs. quality of life. Bellows feels such a discussion is inevitable. Mielke stated that core services are primarily within police, fire, streets and utilities; however there is a further breakdown of functions within each of these departments. Council Member Rieb had received a question from a business owner regarding the City's fund balance. Feller stated that according to state auditor guidelines, a fund balance should be 40 50% of the budget, or an amount adequate to cover the operational costs for the first six months of the year until the State distributes the first semi annual payment to the city. The fund balance should also include a contingency of about 5% for unanticipated expenditures or deviations in revenues. A fund balance below 45% also puts the City's credit rating at risk resulting in higher interest rates. Truth in Taxation statements were received by residents and businesses about two weeks ago and the number of responses was unusually low. Council Member Miller asked if the 2009 budget has been projected to the end of the year to determine if there will be any carryover funding. Feller stated that those amounts are being used in the documents the Council has received, and there are no significant changes to what was presented in September. The Finance Director also highlighted changes in the schedule of fees. A public hearing is scheduled for December 14 at 7:00 p.m. to receive comments on the budget, tax levy and fees. No Council action will be taken at that time. Following the public hearing, the budget will be brought to the City Council at the December 21, 2009 meeting for adoption. Prior to that meeting, the results of the bond sale and possible budget reduction will be available. Bellows stated that a substantive discussion needs to be held to establish what services are considered "core Mielke will work with staff to provide a list of services by department to distinguish various types of services essential, development- driven, quality of life, and /or administrative, as well as an inventory of each position's function. This discussion will be added to a future work session agenda when the information has been compiled. City Council Work Session Minutes November 23, 2009 Page -3- ITEM #2 Update on Pioneer Plaza Planning Study Community and Economic Development Director Dave Olson provided an update on the planning study which was completed by Brauer and Associates. Council authorized the use of Community Development Block Grant funds for the study earlier this year. The adjacent parking lots located on the west side of Holyoke Avenue were also included in the study to determine what might be done to improve parking for the downtown businesses. Property and business owners, the DLBA, and the CDA were invited to attend an open house in June to offer input during the planning stage. Concept plans were reviewed with the DLBA Executive Committee and property owners at a second open house in October. The plan includes several upgrades to Pioneer Plaza, adjustment of the pedestrian crosswalk between the park and Market Plaza, and the elimination of some parking spaces along Holyoke Avenue. Cost estimates are currently being prepared by Brauer and Associates. A phased project is being proposed, with the project being completed as funding sources are identified or become available. ITEM #3 CapX2020 EIS Correspondence Review. City Engineer Keith Nelson updated the Council on WSB's review of the Draft Environment Impact Statement for a transmission line project proposed by Great River Energy and Xcel Energy, known as the CapX2020 Project. The preferred route for this portion of the project in Dakota County is south of Lakeville through Eureka and Castle Rock Townships. The people who would be impacted by the preferred route have asked for alternatives to be explored. For this reason, the applicants were required to evaluate an additional route further to the north that would go through the eastern portion of Lakeville and continue into Farmington. Council reviewed a draft letter to the Minnesota Office of Energy Security prepared by WSB stating the impacts that this power transmission line would have on both developed and undeveloped land in the City, due to Lakeville being in the MUSA and having a Comprehensive Plan adopted by the Metropolitan Council. Several residential, commercial and industrial properties would be adversely impacted, as would the Airlake Airport which is planning for growth and expansion of the runway. Council directed staff to finalize the letter and prepare it for the Mayor's signature. City Council Work Session Minutes November 23, 2009 Page -4- ITEM #4 Discuss dates for future 2009 and 2010 work sessions. Council members reviewed a draft resolution and discussed dates for future work sessions. The 2009 resolution had projected a work session on December 14t which has now become a public hearing for the budget. There was not a work session scheduled for the fourth Monday of December. Staff is proposing an additional work session on January 11, 2010 to discuss policy issues and costs for transit in Lakeville. If Council determines that a second work session in January is not necessary, that meeting could be cancelled. The January 11t agenda would also include discussions about reappointments and filling vacancies on advisory committees. Further discussions could also be held regarding the purpose and mission of the Telecommunications Commission and the possibility of modifying their focus to include broadband. Council directed staff to add the resolution as a consent agenda item at their next meeting. ITEM #5 Other Council members discussed introductions at the upcoming Advisory Appreciation Event. Council Member Miller reported that at the request of the VFW he had attended and spoke at their Veterans Day program at the memorial site. He was disappointed at the small number of people who turned out for the event and would like to see if the City could assist the VFW with promotion of such events in the future. ITEM #6 Adjourn The meeting adjourned at 7:15 p.m. Respectfully submitted, VLo