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HomeMy WebLinkAbout12.10.12 Work Session Minutes Council Workshop Minutes December 10,2012 Present: Larson, Bartholomay, Donnelly, Fogarty(arrived 6:38 p.m.), May Also Present: David McKnight, City Administrator;Robin Hanson, Finance Director;Brian Lindquist,Police Chief;Randy Distad, Parks and Recreation Director;Kevin Schorzman, City Engineer;Todd Reiten, Municipal Services Director;Brenda Wendlandt, Human Resources Director;Tim Pietsch,Fire Chief;Cynthia Muller, Executive Assistant Mayor Larson called the workshop to order at 6:38 p.m. MOTION by Fogarty, second by Donnelly to approve the agenda. APIF,MOTION CARRIED. The purpose of the workshop was to cut an additional$152,986 from the 2013 budget. Mayor Larson noted in other budget workshops the issue of whether to keep a police officer was discussed and that continues to be the big issue. Mayor Larson and Councilmember Fogarty wanted to keep a police officer. Councilmembers Bartholomay and May wanted to eliminate one officer. Councilmember Donnelly was also in favor of keeping an officer. With a police officer off the table, other options needed to be discussed. Councilmember May noted at the last workshop, it was stated they were in favor of keeping an officer because of a retirement and asked about the status of the retirement. An update on the status was not given. Councilmember May asked for clarification if their decision is based off a retirement that is coming soon,what does that mean. Mayor Larson was in favor of keeping an officer whether there is a retirement or not. Councilmember May did not understand why we cannot have a constructive discussion about this at a workshop. Councilmember Donnelly asked if the date of May 31, 2013,to eliminate a police officer was to coincide with the end of the school year. That was staffs intent, but it is up to Council. Mayor Larson stated the Fire Department offered up the generator. Fire Chief Pietsch explained there are now fixed generators for the lift stations, so there are three extra generators and another one is not needed. Councilmember Bartholomay stated at the last workshop he talked about reducing an officer and also reducing$100,000. He noted the Police Chief already reduced his budget by$60,000 so there is a difference of$40,000. He felt the police officer position will come up every year. Mayor Larson asked about the staffre-organization. City Administrator McKnight was considering a couple different options,but did not want to discuss them until he was clear. If Council was not comfortable including this because it is not clear, he understood. City Administrator McKnight was comfortable with doing a staff re-organization. Staff has been cut for the last five years, but we have not cut any work. He did not want to bring more staff cuts without reducing work,but some of the work cannot be cut. You could generalize it as greater efficiencies. 11 Council Workshop Minutes December 10,2012 Page 2 Mayor Larson asked about charging the EDA for staff time. City Administrator McKnight explained the City Planner spends most of her time on economic development,but we don't charge any of that time to the EDA. He proposed taking$15,000 of economic development next year to pay for some of her staff time. We are paying off the EDA loan this year, so there will be $40,000 of the$50,000 available. The Council suggested putting the net proceeds from the sale of the old senior center building into the EDA fund. There will be some money to spend in economic development next year, but we do not charge them for staff time. Councilmember Donnelly asked where funding for prior staff came from. Some Councilmembers thought previous staff was paid from the EDA and some thought from the general fund. Councilmember Fogarty stated the EDA is broke, so was not sure how the EDA will pay for staff. City Administrator McKnight stated the fund balance will be at zero or a little above by the end of 2012. We have$50,000 we are transferring to the EDA in 2013. Approximately$10,000 of that is committed to other expenditures. That leaves$40,000 and if you take the net proceeds from the sale of the senior center building,that is an additional$30,000. Councilmember Fogarty asked if Councilmembers were looking for permanent changes or are we looking to take$152,000 out of one budget year in one time cuts. Charging the EDA is a permanent policy change and there was not enough time to make a policy change. If we want to switch money from the EDA,then we are better off talking about one time transfers such as the money we just delegated to the EDA and put it back to the general fund. She was not a fan of that because she did not like one time changes. She did not know what the desire was; if we are looking to permanently cut $152,000 out of the budget or if this is just a 2013 issue. She asked what Councilmember Bartholomay's intent was when he made the motion to cut$152,000 from the budget. He stated it was for 2013,one time cuts and reconsider the budget for 2014. Councilmember Fogarty stated if we are talking about one time cuts, she did not want to talk about building or trail maintenance because these are funds we set up to reduce costs. Those should not be on the table because that is a change in policy. Councilmember Bartholomay did not want to use EDA money to pay for staff. Councilmember May felt we should take the full$30,000 from the sale. If we are looking at staff re-organization, she would not take money from one pot and put into another pot. Take the$30,000 now and look at what happens with re-organization in 2013. We have two City Planners,that could be discussed and use them how you see best. Whether they are paid from the EDA or the general fund, she would not touch that now. Mayor Larson asked about using the reserve. Councilmember May questioned the pond testing. She would not touch building or trail maintenance. City Administrator McKnight noted the pond testing comes from the storm water fund, not the general fund. Councilmember May agreed with looking at rent income for farming the park land. When you take staff off the table, you have to look at revenue. Councilmember Bartholomay stated as far as using the reserve money, it depends on what we want to do with the Fire Chief's vehicle. If you eliminate the reserve and the vehicle, and the vehicle breaks down,we have no way to pay for it. He would eliminate one or the other. He would rather not use the reserve,but we may not have a choice. 12 Council Workshop Minutes December 10,2012 Page 3 Councilmember Fogarty stated if we are looking at this as a 2013, one time budget decrease, she would support eliminating the generator, eliminate the reserve, do the staff re-organization, and direct the net proceeds from the sale of the old senior center to the general fund. She would not support eliminating trail maintenance, eliminating a police officer, eliminating building maintenance. As far as the chiefs vehicle or reserve, you have to have one or the other. Councilmember Donnelly stated as far as the generator,the Fire Department did not give up anything because they didn't need the generator. He would keep the reserve and eliminate the chiefs vehicle, and put the proceeds from the sale of the old senior center to the general fund. By holding the line on taxes, we did some economic development and helped the businesses. The$30,000 from the building sale helps that. Councilmember May left it to the City Administrator as to whether to eliminate the chief s vehicle. Mayor Larson summarized to do the following: Eliminate$50,000 of the reserve or$45,000 for the chiefs vehicle Put$30,000 from the net proceeds of the sale of the old senior center in the general fund Do the staff re-organization of$24,000 Eliminate the generator for$50,000 City Administrator McKnight suggested cutting the chiefs vehicle and watch the reserve line item during 2013. If there is money left,then purchase the chiefs vehicle. The final outcome was: Eliminate the generator$50,000 Building sale revenue to the general fund for$30,000 Staff re-organization of$24,000 Eliminate Chiefs vehicle$45,000 Use$3,986 from reserve City Administrator McKnight updated Council on a question from Mr. Tonsager at the last Council meeting. His tax increase will go from$850 to $600. Councilmember Fogarty stated the majority of the$152,000 cut will buy down private property taxes more than commercial. The above list will be brought to the December 17, 2012, Council meeting. MOTION by Fogarty, second by Bartholomay to adjourn at 7:04 p.m. APIF,MOTION CARRIED. Respectfully submitted, Cynthia Muller Executive Assistant 13