HomeMy WebLinkAbout08.14.17 Work Session Minutes CITY OF FARMINGTON
CITY COUNCIL MINUTES
WORK SESSION
AUGUST 14, 2017
Mayor Larson called the work session to order at 6:00 p.m.
Roll Call
Present-Larson, Bartholomay, Bernhjelm, Donnelly and Craig
Absent-None
Staff Present-Administrator McKnight, Finance Director Hanson, Fire Chief Larsen
Agenda
Motion by Craig, second by Bernhjelm,to adopt the agenda as presented. APIF, motion carlried.
Non-Contract Fire Charges Discussion
Fire Chief Larsen, Finance Director Hanson and Administrator McKnight presented the city
council with information on non-contract fire charges. In 2016 the city started to bill residents
for unauthorized burning, fire where hazardous materials were spilled,vehicle fires and
extrications for non-residents and invalid assist alarms that occur more than three times per
year.
As of July 31, 2017 the city has $30,570 in outstanding non-contract fire charges. City staff is
looking for direction from the city council on whether this is something that we should continue
doing.
The city council held a detailed discussion about the values of this approach, what residents
expect from their tax dollars, how to collect these funds from non-residents, using teaching
moments with the enforcement of codes, ensuring a continuing effort is made to educate
residents on the city code and more.
The city council provided direction to city staff to bring the draft ordinance to the city council
for approval at an upcoming meeting, setting a minim amount of$500 to be used for collection
efforts by city staff unless a property is a multiple offender with an effective date upon passage
of the updated ordinance and not to charge for incidents related to vehicle accidents.
Early Redemption of Remaining Series 2010A, 2010B and 2011A
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Finance Director Hanson shared with the city council that the city has three bond series eligible
for optional redemption on February 1, 2018. City staff is proposing to redeem these bonds
early from the following sources:
Series Financed Refinance or Callable Interest Final Estimated
Project Redeem Amount Rates Maturity Gross Savings
Source of
Funding
2010A Police Station Refinance- $1,435,000 3.25%-4.00% 2/1/2022 $77,000
Internal Loan
from Storm
Water Trunk
Fund
2010B Maintenance Redeem- $445,000 3.125%- 2/1/2022 $36,500
Facility Utility Funds 3.25%
2011A Main Street Redeem- $335,000 2.50% 2/1/2019 $121,900
Project 2016A, Road
and Bridge
Fund Related
Bonds
The interfund loan for 2010A would be repaid with future debt levy previously earmarked for
the 2010A bonds. The interest rate would be 1.755%. A resolution approving this interfund
loan will be presented at the August 21, 2017 city council meeting.
The early redemption of 2010B and 2011A will be done using dollars already on hand in the
utility funds and the 2016A bond fund.
Hanson estimated that these actions will result in approximately$121,900 in interest savins to
the city.
The city council was in full support of this proposal.
Draft 2018 Budget and Tax Levy-August Update
Finance Director Hanson presented the second draft of the 2018 budget and tax levy for city
council review. Since the last work session city staff has continued to refine the 2018 draft',
budgets. The draft budget assumes that the pool is closed in 2018 with potential savings kept
in the 2018 pool budget for demolition,fill in and reclamation of the pool and bathhouse areas.
Building permit revenues, franchise fee revenue and human resources costs were all adjusted
since the first draft of the 2018 budget.
The draft 2018 budget and tax levy currently sits as follows:
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2017 Budget 2018 Proposed Budget Change
Proposed Net Tax Levy as $10,644,009
of 7/10/2017 Work
Session
Pool Closing $0
Increase Permit Revenues ($44,165)
Increase Franchise Fee ($20,000)
Revenues
Adjust HR Costs ($50,000)
Decrease Transfer Out to ($20,000)
Park Improvement Fund
Other Combined ($15,659)
Refinements
Proposed Farmington Net $9,996,822 $10,494,085 4.98%
Tax Levy
Councilmembers thanked Hanson for the work on the updated budget. There were a number
of questions on the need for a new staff position versus funding items like the building fund,
emerald ash borer,trail maintenance, etc. that currently do not have enough funding. The'city
council directed staff to remove the citizen survey from the 2018 budget and move those
dollars to building maintenance. A question on the increase in the police department budget
will be researched and shared with the city council.
The city council spent time discussing where the final 2018 levy should be set. Discussion also
took place on the use of any increased tax levy, where future years are headed, adding
additional positions and more.
The city council consensus was to leave the preliminary levy at 4.98%and have the city
administrator come back with a recommendation on the use of increased tax levy dollars.
City Administrator Update
City Administrator McKnight presented an item from the City of West St. Paul for city council
consideration. West St. Paul undertook a Robert Street reconstruction project in the past few
years that includes costs that jumped from around $12,000,000 up to $48,000,000. West Sit.
Paul is requesting$12,000,000 of supplemental financial assistance to reimburse the city for
project costs which would increase the state's contribution to 46%of the total project costs
since this is a state road. Typically the city pays about 16%for projects similar to this one but in
this case West St. Paul is paying 65%. West St. Paul is looking for support from other Dakota
County city's with their request to the state.
Councilmembers understood the issue that West St. Paul is going through and felt it best that
they work with the state to resolve this issue.
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McKnight updated the city council on a number of other issues including the city calendar, a city
liability issue,the city code as it relates to fences, upcoming plat considerations and staffing
issues.
City Council Roundtable
None.
Adjourn
Motion by Bartholomay, second by Bernhjelm,to adjourn the meeting at 8:04 p.m.
Respectfully Submitted
David McKnight, City Administrator
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