HomeMy WebLinkAbout08.11.14 Work Session Minutes City Council Workshop Minutes
August 11,2014
Mayor Larson called the workshop to order at 6:30 p.m.
Present: Larson, Bartholomay, Bonar,Donnelly, Fogarty
Also Present: David McKnight, City Administrator; Robin Hanson,Finance Director; Brian
Lindquist, Police Chief; Adam Kienberger, Community Development Director;
Randy Distad, Parks and Recreation Director; Todd Reiten,Municipal Services
Director; Cynthia Muller, Executive Assistant
MOTION by Fogarty, second by Donnelly to approve the agenda. APIF,MOTION
CARRIED.
Draft 2015 Budget Review
At the June workshop,the 2015 General Fund budget included a 6.61%net tax levy increase.
Staff has revised the budget and it now includes a 4.97%net tax levy increase. Revenues were
increased by$11,000 and expenditures were lowered by $132,000.
The increase in income came from a revision to the investment interest income, various
recreational and Rambling River Center line items. The decrease consisted of a reduction in the
administration reserve line item, removal of security enhancements at the police station,the
vision for the fire chiefs vehicle in the CIP was redone as we will repurpose the SRO vehicle
and in 2016 the commercial inspector vehicle will be repurposed for the second chief's vehicle.
The actual fiscal disparities number will be available later in August; for now it is the same as
2014.
Transfers out amount to $563,000 for the EDA, arena, fire CIP, capital equipment fund,
sealcoating,trail maintenance and building maintenance. Local Government Aid(LGA)funds
will be used for the customer survey and strategic planning, assessments related to the hotel
parcel, fire CIP, streets and equipment CIP,new software to redesign the website,update
computers to the same operating system and Office suite software, point of sale software for the
pool,the purchase of accounts payable software and online employment application software,
and new lights at the Rambling River Center. The software for the pool will be determined
depending on Council's decision on the pool.
Council discussed the annual historic preservation consultant cost of$7,100. Council reached a
consensus to continue this cost,but would like to receive an annual report from the consultant
including duties and what was done.
There were no changes to the debt service funds levy. This provides for the city's portion of the
195th Street reconstruction project. It also continues to strengthen the cash flows as the city
continues to work toward full compliance with the 105%funding requirement. Last year we
increased the overall debt levy by$80,000 to address the 105%and other issues have been
brought into compliance. As of today we have two debt service funds with a negative cash flow.
Council Budget Workshop Minutes
August 11,2014
Page 2
The special revenue funds include the EDA, TIF,park improvement and the arena. The park
improvement fund has been modified by reducing the special assessments projection and
exchanged the 2015 and 2016 proposed park expenditures.
Capital project funds are the same as in July. Staff has created a general capital equipment fund
and requested that any net cash from vehicle sales be put into this fund for future vehicle
purchases. Council agreed.
In the enterprise funds the streetlight fund budget includes$20,000 in expenditures in 2015 to
provide funds for a test area for LED replacement lights. Staff is working on a long term plan
for the sewer and storm water funds and will bring this to Council in the fall.
Based on increased human resource costs and budgeted debt service needs,the levy would need
to increase 4.02%. The average home with a market value of$197,416 would have a tax
increase of$35.69. The proposed budget is at 4.97%which would be a tax increase of$45.55.
The budget does not include a new ladder truck, any recommendations from the aquatics
feasibility study or any Ice for Tigers funding.
If fiscal disparities comes in higher than last year, Finance Director Hanson would recommend
reducing the amount of expected interest income and get an update on building permits to
determine if we want to reduce that amount. City Administrator McKnight suggested looking at
the reserve line item of$50,000 and whether to have it,keeping it at$50,000 or increase it to
$100,000 as in the past. Council suggested discussing this after approving the preliminary
budget. The preliminary budget would be approved as presented.
Police Department Staffing
An officer has retired. There will be four officers taking FMLA later in the year. Due to budget
cuts, Officer Tukua's position was eliminated at the end of 2013. Police Chief Lindquist
requested that Officer Tukua be reinstated. After some discussion, Council agreed to reinstate
Officer Tukua. This will be on the next Council agenda for approval.
City Administrator Update
The Primary Election is August 12,2014.
There have been two filings for Council so far.
MOTION by Fogarty, second by Donnelly to adjourn at 7:28 p.m. APIF,MOTION
CARRIED.
Respectfully submitted,
Cynthia Muller
Executive Assistant