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HomeMy WebLinkAbout12.02.13 Council Minutes COUNCIL MINUTES REGULAR DECEMBER 2, 2013 1. CALL TO ORDER The meeting was called to order by Mayor Larson at 7:00 p.m. 2. PLEDGE OF ALLEGIANCE Mayor Larson and Girl Scouts Jennifer Elfering and Anna Wilson led the audience and Council in the Pledge of Allegiance. 3. ROLL CALL Members Present: Larson, Bartholomay, Bonar,Donnelly,Fogarty Members Absent: None Also Present: Joel Jamnik, City Attorney; 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; Cynthia Muller, Executive Assistant Audience: Russell Zellmer,Holly Ingling,Vickie and Jenn Elfering,Anna Wilson,John Guist 4. APPROVE AGENDA City Administrator McKnight noted Council received updated memos for items 7b) and 8a) Various 2014 License Renewals. Mayor Larson pulled item 7d)2014 Non-Union Wage Scale for comment. MOTION by Fogarty, second by Bartholomay to approve the Agenda. APIF, MOTION CARRIED. 5. ANNOUNCEMENTS a) Troop 116 Gold Award Recipients—Mayor Larson Ms. Holly Engling, leader of Girl Scout Troop 22314, mentioned Anna Wilson and Jennifer Elfering have been in Girl Scouts since kindergarten and are now seniors. They have mentored youth at camp, volunteered at the nursing home, collected clothes for Dakota Woodlands, and created a program called Kids and Seniors Connect. Both of these girls have received a Girl Scout Gold Award. Ms.Anna Wilson explained the Gold Award is equal to the Eagle Scout Award and they have to do 80 hours of community service. She worked with the Farmington Lutheran Church nursery, by organizing the toys, obtained costumes, and developed a cleaning sheet for the toys. Ms. Jennifer Elfering did her project at Dakota Woodlands. She cleaned out a storage room and stocked it with cleaning items, redid a bedroom and stocked it 3 Council Minutes(Regular) December 2,2013 Page 2 with supplies, sewed curtains, and redecorated the game room. She donated a TV stand and made new toys for them. She also developed a brochure for other organizations so show how they can help. 6. CITIZEN COMMENTS Mr. John Guist, 3647 Upper 204th Street W, invited everyone to Farmington's Yellow Ribbon Network Fifth Anniversary on Friday, December 6,2013, at Farmington High School. There will be a social hour at 6:00 p.m. and program at 7:00 p.m. Governor Dayton will also be attending. 7. CONSENT AGENDA MOTION by Fogarty, second by Bartholomay to approve the Consent Agenda as follows: a) Approved Council Minutes (11/18/13 Regular) b) Approved Various 2014 License Renewals- Administration c) Adopted RESOLUTION R53-13 Accepting Donation Rambling River Center— Parks and Recreation e) Approved Bills APIF,MOTION CARRIED. d) Approve 2014 Non-Union Wage Scale-Administration Councilmember Bonar noted we spent time and expense in hiring a consultant and met with him in a workshop. This is an opportunity for Administration to take a leadership role and have a cursory discussion for the public. City Administrator McKnight noted it has been 12 years since a salary review has been done. The new structure has a minimum salary range of 0.7% of average,midpoint at 0.1% of average, and maximum at-0.1%. The consultant compared 33 other communities to Farmington. There are three options to revise the scale and the consultant recommended up to the closest step option. This was brought to Council for non-union staff. The cost to implement this for all employees, except police officers, is just under$40,000. The step increases are reduced from an increase between steps of 4.5%to 2.5%. The new scale moves us from a five-step three year scale, to an 11-step 15 year scale, eliminates merit pay, and emphasizes the need for positive performance reviews before there is any step movement. This will be negotiated with union staff. MOTION by Fogarty, second by Bonar to approve the 2014 non-union wage scale effective January 1, 2014, with some conditions. Voting for: Bartholomay, Bonar, Donnelly, Fogarty. Abstain: Larson. MOTION CARRIED. 8. PUBLIC HEARINGS a) Approve Various 2014 License Renewals- Administration License renewals for 2014 for On-Sale Liquor, On-Sale Sunday Liquor, Club, On- Sale Wine and On-Sale Intoxicating Malt Liquor and Therapeutic Massage licenses for various businesses was submitted. MOTION by Fogarty, second by Donnelly to close the public hearing. APIF, MOTION CARRIED. MOTION by Bartholomay, second by Fogarty to approve the On-Sale Liquor, On-Sale 4 Council Minutes(Regular) December 2,2013 Page 3 Sunday Liquor, On-Sale Intoxicating Malt Liquor and On-Sale Wine, Club and Therapeutic Massage licenses for various businesses. APIF,MOTION CARRIED. 9. AWARD OF CONTRACT 10. PETITIONS,REQUESTS AND COMMUNICATIONS 11. UNFINISHED BUSINESS a) Adopt Resolution—Approve 2014 Tax Levy and Budget-Administration City Administrator McKnight presented the final 2014 budget for approval. When talking about the budget,he was referring to the general fund as that makes up the majority of the budget. Council and staff have worked on the budget for the past six months. The 2014 preliminary tax levy was approved on September 3, 2013, at$8,730,856 which is a 1.92% or$164,874 increase over 2013. The proposed budget is $10,969,831 which is a 3.8% increase over 2013. The final tax levy remains the same as the preliminary levy. City Administrator McKnight • explained the changes in each department which make up the budget. The tax levies in surrounding communities range from 5.6% increase to 2.5%decrease. Levy limits were put in place for 2014; debt is excluded from levy limits. We will receive$245,000 in local government aid in 2014 to be used for one-time purchases. The last time we received LGA was in 2003, and because of this we were not allotted the 3% increase in levy limits by the legislature. We could only increase for debt. The City will no longer have to pay sales tax in 2014,which is a savings of$30,000 and is being used to reduce the tax levy. A capital improvement plan for streets is included and paid for by a bond. A fire department CIP is included in 2014. The majority of the LGA dollars will be dedicated to the Fire Department with the replacement of eight vehicles from 2013 —2016. Cash will be set aside to replace engine 2 in 2019. A long term plan with the Fire Relief Association has been included in the budget. The 2014 budget does include the elimination of one police officer. Building permit activity has increased significantly in 2013 and increased revenue is included in 2014. City Administrator McKnight explained the residential portion of the tax capacity is going from 77.39% in 2013 to 77.91%in 2014. This puts more of the burden of paying taxes on residential properties. The commercial properties are going down along with industrial. Ag property is going from 1.14%to 1.62% which is a significant increase. The average home will see a$9.01 increase in City taxes. Over all properties there is a range of an increase of$94.49 to a decrease of$142.23. Taxes are going up because we have a proposed gross levy of$222,199. We issued a bond for our CIP and have to pay that back starting next year of$135,000; this is an increase to debt and we also have $87,199 in other debt which equals $222,199. Subtracting a difference in fiscal disparities between 2013 and 2014 of$57,325 leaves us with a net levy increase of $164,874. 5 Council Minutes(Regular) December 2,2013 Page 4 The general fund balance falls below zero in April and May until first half taxes are received and falls below zero again in November. In 2013 we started lower than previous years because of purchasing the fire engine in 2013. June through October 2013 shows significant increase to the general fund from previous years due to a sound budget and a significant collection of delinquent taxes. In October we had a$360,000 fund balance. As soon as we alleviate the April issue of falling below zero,we can work on November and then May to get our fund balance at zero or above every month. By 2018—2019 this fund has to be self- sufficient. Looking at December 2012 which is $2.7 million, if we were to reach the state auditor's requirement of a 35% fund balance, we should have been at $3.7 million, so we were $1 million short to meet the minimum state auditor's requirement. Looking at 2013 and projecting it out,the December 2013 fund balance should be $3.83 million which we will not reach, but we will be less than $1 million short which means we are making improvement. There were no public comments made at the meeting. MOTION by Bartholomay, second by Bonar to adopt RESOLUTION R54-13 adopting the tax levy for the year 2014 collection. APIF,MOTION CARRIED. MOTION by Bartholomay, second by Bonar to adopt RESOLUTION R55-13 adopting the 2014 operating budget for governmental funds. APIF,MOTION CARRIED. Mayor Larson thanked staff for their hard work and smooth process on the budget. 12. NEW BUSINESS 13. COUNCIL ROUNDTABLE Councilmember Fogarty: In the last few years we have eliminated several positions. This year we eliminated a police officer in the budget. It is always sad to have to let anyone go, especially a police officer. It was a tough decision. She encouraged residents to support our troops and attend the Yellow Ribbon fifth anniversary celebration. She reminded residents of parking restrictions for snow plowing. She asked Chief Lindquist to give some information on Toys for Town. Chief Lindquist stated collection bins will be at various businesses and at City Hall. Sites will be updated on the website. Wrapping will take place on December 21, 2013. They are estimating 260—270 kids in need, 100 families and food amounting to $5,000. Councilmember Bartholomay: Thanked staff for their hard work on the budget. He agreed it was very tough to eliminate a police officer. It is nice to hear we are more fiscally sound than a couple years ago. Councilmember Bonar: Complimented Council for their budget deliberations over the last six months. We had discussions and came to a consensus. He credited City Administrator McKnight for his leadership with the budget. 6 Council Minutes(Regular) December 2,2013 Page 5 Mayor Larson: The Fifth Anniversary of the Yellow Ribbon Network is Friday at the high school. He encouraged residents to fill the auditorium. Dazzle Day will be December 7,2013,with specials at many local businesses, horse and carriage rides, and a tree lighting ceremony. He asked residents to support Toys for Town. 14. ADJOURN MOTION by Fogarty, second by Bartholomay to adjourn at 7:46 p.m. APIF,MOTION CARRIED. Respectfully submitted, Cynthia Muller Executive Assistant 7