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HomeMy WebLinkAbout10.23.02 Work Session Minutes BUDGET WORKSHOP MINUTES October 23, 2002 The meeting was called to order by Mayor Ristow at 5:30 p.m. Present: Mayor Ristow, Councilmember Strachan, Councilmember Soderberg, Councilmember Cordes, Ed Shukle, City Administrator; Robin Roland, Finance Director; Kevin Carroll, Community Development Director; Dan Siebenaler, Police Chief; Jim Bell, Parks and Recreation Director; Lee Mann, Director of Public Works/City Engineer; Karen Finstuen, Administrative Services Director; Brenda Wendlandt, Human Resources Director; Ken Kuchera, Fire Chief; Tim Gross, Assistant City Engineer; Cynthia Muller, Executive Assistant Also Present: Aaron Tinklenberg, Christy Jo Fogarty, Randy Oswald, Earl Teporten, Ben Barker Finance Director Roland presented highlights of the 2003 Preliminary Levy and Budget. The proposed preliminary levy for all purposes is $4,242,570; $635,554 or 17.6% over the 2002 levy of$3,607,016. The proposed levy is $701,868 under the state imposed 2003 levy limit. Estimated revenues include $593,986 of Local Government Aid (LGA). Due to state budgetary difficulties, it is anticipated that LGA will be reduced or eliminated by the 2003 legislature. The preliminary levy (adopted 9/3/02) includes $296,993 reserved funding to offset this loss. It was discussed that if LGA was not reduced, a cushion will be built into the fund balance, which will not be eannarked for any specific proj ects. There is a 10% increase in expenditures anticipated each year. The city did not anticipate an increase in market values, which puts revenues ahead of budget and expenditures on target. Revenues - 2002 Adopted vs. 2003 Proposed 2002 Adopted 2003 Proposed Total $5,216,271 $6,066,035 % Change 16.3% Expenditures 2002 Adopted vs. 2003 Proposed 2002 Adopted 2003 Proposed Total $5,216,271 $5,769,042 % Change 10.6% Fund Balance As % ofExp. 37% 45% A member of the audience asked as a way of increasing revenue if there was an opportunity for profit centers, such as mechanics doing work for residents, or the parks division picking up storm damaged trees and brush for residents. Staff replied that was done a few years ago, but the city no longer does residential work unless there is a natural disaster declared by the police. Ways that other cities are preparing to deal with the possible shortfall in LGA was discussed. Rosemount has levied to the maximum in 2003, adding staff and programs. They did not increase their levy to account for loss of LGA, but have noted programs to be cut. Lakeville has also levied to the maximum in 2003. They had a moratorium on building permits two years ago which limited growth. Their levy is increasing $742,000 for operations. The following new positions which are included in the 2003 Preliminary Budget were discussed: - Payroll Support Specialist - Finance and Human Resources _ Park Keeper - for mowing around ponds, assist with trees and snowplowing _ Increasing the Community Development/Engineering Secretary position from part-time to full-time due to an increase in workload because of increased building inspection reporting requirements. Staff would like this increased immediately. The position was split between Inspections and Engineering. If this position were increased to full-time for Inspections, then a part-time Engineering Secretary position would be added. Also included in the budget document was a 5-year capital acquisition plan. Mayor Ristow inquired about the refurbished police cars and Councilmember Strachan asked about the detective vehicle. Staff stated the refurbished police cars are working out very well, and that the current detective vehicle was still in good working order. A vehicle for the Fire Chief/Fire Marshal had been purchased in 2002. All 2002 items requested have been purchased. Councilmember Soderberg inquired about the video camera for the police department. Staff stated the video camera would be used for traffic stops and can reduce the amount of court time. Councilmember Strachan asked about cars for future detectives. Staff stated in the future there will be two detectives and two cars will be needed. A member ofthe audience asked how staff arrived at project costs for 200n The projects were estimated using today's costs, and are only estimated figures. Prices for some items tend to be reduced in future years. Mayor Ristow noted the capital outlay items are approved by Council when they are requested. Staff also noted the Fire Hall roof needs to be replaced. Regarding other vehicles, Engineering would like to replace their existing truck, and Public Works would like to replace the street sweeper. Also included in the budget is the purchase of a tanker truck to be used for watering down gravel roads and watering trees, a 4-wheel drive pick- up and a gang mower. Councilmember Strachan inquired ifthe liquor store profits continue to lag, will Park and Recreation be underfunded? Staff stated a decrease in profits might affect park development, but not park operations. Councilmember Strachan suggested that in the future the city should consider either expanding the liquor operations or get out ofthe liquor business. Staff stated that in the future there could be a need for a larger downtown liquor store. The Pilot Knob store has two years remaining on the lease. Councilmember Soderberg asked ifthe number of people requested was enough? Staffis committed to not hiring too many people, and then have to cut positions in a few years. Staff is requesting 8 or 9 new positions. A member of the audience asked if the Building Inspections division would need more staff? Currently the city is using Inspectron to assist with inspections. It is planned to promote a building inspector to building official and hire another building inspector. This would eliminate the need for Inspectron. Currently there are 72 part-time and full-time employees. Including the volunteer firefighters there are approximately 100 employees, and with seasonal staff the total is 135 employees. Staffthen asked for Council approval to increase the part-time Community Development/Engineering Secretary position to full-time immediately. This would add 10 hours per week to support Building Inspections, and the part-time Engineering Secretary would be hired in 2003. Staff noted not all positions are filled at the beginning ofthe year, but are filled throughout the year. Council approved the request. The Budget Workshop adjourned at 7:00 p.m. Respectfully submitted, 7-~-- /Y?~~ Cynthia Muller Executive Assistant