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HomeMy WebLinkAbout09.03.13 Council Minutes COUNCIL MINUTES REGULAR September 3, 2013 1. CALL TO ORDER The meeting was called to order by Mayor Larson at 7:00 p.m. 2. PLEDGE OFALLEGLANCE Mayor Larson led the audience and Council in the Pledge of Allegiance. 3. ROLL CALL Members Present: Larson, Bonar, Donnelly, Fogarty Members Absent: Bartholomay Also Present: Andrea Poehler, City Attorney;David McKnight, City Administrator;Robin Hanson, Finance Director;Brian Lindquist, Police Chief;Randy Distad, Parks and Recreation Director;Kevin Schorzman, City Engineer;Brenda Wendlandt, Human Resources Director;Cynthia Muller,Executive Assistant Audience: Jerry Rich 4. APPROVE AGENDA MOTION by Donnelly, second by Bonar to approve the Agenda. APIF,MOTION CARRIED. 5. ANNOUNCEMENTS 6. CITIZEN COMMENTS a) Response to Citizen Comments Golfing in City Parks—Parks and Recreation Mr. Kevin Collins spoke at the August 19, 2013, Council meeting regarding a concern with golfing in parks. This will be discussed at the October Parks and Recreation Commission meeting. 7. CONSENT AGENDA MOTION by Donnelly, second by Bonar to approve the Consent Agenda as follows: a) Approved Council Minutes (8/19/13 Regular)(8/26/13 Workshop) b) Approved Cost Share Agreement with Dakota County for Election Equipment- Administration c) Approved City Administrator Evaluation Summary—City Attorney d) Adopted RESOLUTION R40-13 Accepting Donation Rambling River Center— Parks and Recreation e) Approved USPCA National K-9 Field Trials—Police Department f) Acknowledged Resignation Fire Department—Human Resources b) Approved Bills APIF,MOTION CARRIED. 6 Council Minutes(Regular) September 3,2013 Page 2 8. PUBLIC HEARINGS 9. AWARD OF CONTRACT 10. PETITIONS,REQUESTS AND COMMUNICATIONS 11. UNFINISHED BUSINESS 12. NEW BUSINESS a) Adopt Resolution—Approve 2014 Preliminary Tax Levy and Budget- Administration City Administrator McKnight presented the 2014 preliminary tax levy and budget. The budget is going from$10,568,653 in 2013 to $10,952,469 in 2014, which is a 3.63% increase. The tax levy is going from$8,565,982 in 2013 to $8,730,856 in 2014,which is a 1.92% increase. He presented a breakdown of the budget changes by department. One employee is being transferred from the Administration to HR/IT budget,the Finance budget is increasing due to increased property/casualty insurance costs,the Fire budget is up significantly due to building repair projects and vehicle purchases,the transfers budget is increasing due to building fund expenditures. New issues for 2014 include levy limits were put in place by the legislature. Debt is excluded from levy limits. Farmington will be receiving Local Government Aid(LGA) for the first time since 2004 in the amount of$245,329, which Council has directed be used on one-time type purchases. As we are receiving LGA for the first time, our operating levy limit is 0%. Cities no longer have to pay state sales tax on purchases effective January 1, 2014, which will save us$30,000. The CIP for streets and vehicles is included in the 2014 budget and will be funded through bonding. Street construction projects will start in 2014 and vehicle replacement will start in 2021. This will move us away from debt and bonding for funding these projects over the next 30 years. A Fire Department CIP is also included in the 2014 budget. A majority of the LGA dollars will be dedicated to the Fire Department. Currently eight fire vehicles will be replaced between 2013 and 2016, and engine 2 would be replaced with cash in 2019. At the workshop, Council had a concern with purchasing two new chiefs vehicles in 2014 and has recommended transitioning older vehicles to the Fire Department and refurbish them. We are getting LGA this year, but there is no guarantee we will receive it in the future. A large portion of LGA is scheduled to fund these purchases in the future. A long term funding plan has been established for the Fire Relief Association. The 2014 budget does include the reduction of one police position in the police department. Seal coating,trail maintenance, and building fund dollars are continued in 2014. There is increased building permit activity this year and the revenue for permits has been increased for next year. 7 Council Minutes(Regular) September 3,2013 Page 3 Regarding the tax capacity, for residential this was 77.39%in 2013 and will increase to 77.91%for 2014. This means a larger portion of the tax revenue will come from residential properties. Commercial has decreased from 10.78%to 10.46%, industrial has decreased from 2.8%to 2.62%, and ag property has gone up from 1.41%to 1.62%which is a significant increase. The 1.92%tax levy increase will result in an increase of$9.97 for the average property. However,there is a broad range of how specific properties will be affected. The range is from a decrease of$142.14 to an increase of$94.60. This depends on the property value. The reason for the increase is the gross levy goes from$10,761,856 in 2013 to $10,984,055 in 2014, which is an increase of $222,199. The reason for this increase is we have new debt to fund the CIP in the amount of$142,000 and there is an increase in previous debt of$80,199. This comes to $222,199. Our fiscal disparities for 2014 increased by$57,325, which leaves a net tax levy increase of$164,874. The General Fund fund balance goes below zero in April and May, increases when property taxes are received in June and July and goes below zero again in November until the second half property taxes are received. The June numbers in 2012 and 2013 have gone up significantly due to collection of delinquent taxes not paid for the last five years. The biggest issue is falling below zero and it needs to be addressed beginning in 2015. The 2014 budget does not address this issue. If we spend within budget and revenues are over budget,this will help to address this issue. MOTION by Fogarty, second by Bonar to adopt RESOLUTION R41-13 approving the 2014 preliminary tax levy as proposed and setting the public input meeting for adoption of the fmal 2014 budget and tax levy for December 2, 2013. APIF,MOTION CARRIED. 13. COUNCIL ROUNDTABLE Councilmember Fogarty: Today was the first day of school and asked residents to be mindful of traffic. Homecoming week is September 16, 2013. City Engineer Schorzman: Fog sealing on the trails will start on Thursday this week. Project information was sent to residents in Akin Park Estates last week. Mayor Larson: He noted the Flagstaff project is done. Thanked the firefighters for the good job with the house fire on Locust Street. He encouraged residents to shop local. 14. EXECUTIVE SESSION a) Labor Negotiations MOTION by Fogarty second by Donnelly to recess into executive session to discuss labor negotiations at 7:21 p.m. APIF,MOTION CARRIED. The executive session began at 7:28 p.m. 8 Council Minutes(Regular) September 3,2013 Page 4 Present: Larson, Bonar, Donnelly, Fogarty Absent: Bartholomay Also Present: Andrea Poehler, City Attorney;David McKnight, City Administrator;Brenda Wendlandt, Human Resources Director 15. ADJOURN MOTION by Fogarty, second by Bonar to adjourn at 8:44 p.m. APIF,MOTION CARRIED. Respectfully submitted, Cynthia Muller Executive Assistant 9