HomeMy WebLinkAbout09.04.18 Council Minutes CITY OF FARMINGTON
CITY COUNCIL MINUTES
REGULAR MEETING
SEPTEMBER 4, 2018
1. Call to Order
Acting Mayor Bernhjelm called the meeting to order at 7:00 p.m.
2. Pledge of Allegiance
Acting Mayor Bernhjelm led those in attendance in the Pledge of Allegiance.
3. Roll Call
Present-Bernhjelm, Bartholomay and Donnelly
Absent-Larson and Craig
Staff Present-Administrator McKnight, Finance Director Malecha, Public Works Director Gehler,
Parks and Recreation Director Distad, Community Development Director Kienberger, Human
Resources Director Wendlandt, Fire Chief Elvestad and Acting Police Chief Rutherford.
4. Agenda
Motion by Bartholomay, second by Donnelly, to approve the agenda as amended with the
closed session for labor negotiations being removed. APIF, motion carried.
5. Announcements/Commendations
a) Fire Chief Elvestad introduced new Fire Lieutenants Jim Oates,Tim Nielsen and
Amanda Christensen. Administrator McKnight administered the oath of office to
all three officers. Chief Elvestad thanked the Farmington Firefighters Auxiliary
for the two donations that are included on the consent agenda.
6. Citizen Comments
a) Response to Lacelle Cordes
7. Consent Agenda
Motion by Bartholomay, second by Donnelly, to approve the consent agenda:
a) Approve Minutes of the August 20, 2018 City Council Meeting-Administration
b) Approve Minutes of the August 20, 2018 City Council Work Session-Administration
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c) Approve Appointment to Rambling River Center Advisory Board-City Council
d) Adopt Resolution R34-2018 Accepting a Donation from the Farmington Firefighters
Auxiliary-Fire
e) Adopt Resolution R35-2018 Accepting a Donation from the Farmington Firefighters
Auxiliary-Fire
f) Adopt Resolution R36-2018 Accepting a Donation from Michael Tang-Fire
g) Approve Out of State Training for Dakota County Special Operations Team-Fire
h) Approve Equipment Purchase-Fire
i) Approve Development Contract for FarmCap LLC-Engineering
j) Appointment Recommendation Fire-Human Resources
k) Approve Seasonal Hiring-Human Resources
I) Approve Bills-Finance
APIF, motion carried.
8. Public Hearings
None
9. Award of Contract
None
10. Petitions, Requests and Communications
None
11. Unfinished Business
None
12. New Business
a) Proposed 2019 General Fund Budget and Preliminary Tax Levy
Administrator McKnight presented the proposed 2019 General Fund Budget and Preliminary
Tax Levy for city council consideration. The city council and city staff have developed the draft
budget and tax levy at work sessions held on May 14th,June 11th, July 9th and August 13th.
These were open meetings and involved discussions on all budgets, capital improvement plans
and more.
The city must set the preliminary 2019 tax levy by September 30, 2018 and submit this
information to Dakota County for inclusion in the Truth in Taxation statements that are sent to
residents in November. The city may lower the preliminary levy that is set at the meeting
tonight by the time the final levy is approved in December, but it cannot be raised.
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The 2019 preliminary budget and tax levy as proposed:
2018 Budget 2019 Budget Change
Expenditures $12,631,013 $13,007,794 2.98%
Less:
GF Revenues $3,163,198 $3,199,486 1.15%
Fiscal Disparities $2,187,003 $2,225,003 1.74%
Net GF Levy $7,280,812 $7,583,305 4.15%
Net Debt Levy $3,213,373 $3,212,460* (0.03%)
Proposed Net Levy $10,494,185 $10,795,765 2.87%
The 2019 preliminary general fund budget by department includes:
2018 Budget 2019 Budget Change
Administration $825,486 $881,322 6.76%
Human Resources $330,831 $336,447 1.70%
Finance/Risk Mgmt. $732,495 $739,736 0.99%
Police $4,451,333 $4,480,057 0.65%
Fire $1,118,352 $1,267,885 6.69%
Community Dev. $801,427 $908,890 13.41%
Engineering $705,474 $747,170 5.91%
Municipal Services $1,313,175 $1,373,556 4.60%
Parks/Recreation $1,282,696 $1,231,593 (3.98%)
Transfers $999,744 $1,041,138 4.14%
TOTAL $12,631,013 $13,007,794 2.98%
McKnight reviewed the purpose and shared some examples of the items included in the
Transfers budget.
Some of the most important factors that impacted the 2019 budget and tax levy include:
✓ The use of$240,000 in General Fund balance dollars to reduce the change in the 2019
tax levy. The fund balance has increased from 24.6% in 2010 to 44.9% in 2018.
✓ Debt repayment has reached its peak in 2019.
✓ There are estimated wage and benefit increases included in the 2019 budget.
✓ New positions are included in the budget in the Administration, Fire, Community
Development and Building Inspections departments.
✓ The collection of the first debt payment on the 2019 Westview Acres reconstruction
project is included in the budget.
✓ Mill and overlay projects are being restarted in 2019.
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✓ Overall revenue is stable but building permit revenue is down slightly and fiscal
disparities revenue is up from anticipated numbers.
Existing debt repayment peaks in 2019 with large amounts of debt being paid in full between
2019-2022.
The projected tax rate for the city will be 52.37% in 2019, down from 58.76% in 2017 and
57.161% in 2018.
The impact on city taxes for the average single family home is as follows:
2018 2019
Estimated Market Value $234,957 $254,492
Homestead Exclusion $16,094 $14,336
Taxable Market Value $218,863 $240,156
Net Tax Capacity (10%) $2,189 $2,402
City Tax Rate 57.16% 52.37%
Net City Taxes $1,251 $1,258
Councilmember Donnelly stated it is a sound budget and thanked staff for their work.
Councilmember Bartholomay echoed the same thoughts and stated we are going in the right
direction.
Councilmember Bernhjelm was happy to see the preliminary levy under three percent and
stated good things are happening financially.
Motion by Bartholomay, second by Donnelly, to adopt Resolution R37-2018 establishing the
2019 preliminary tax levy and setting the public input meeting prior to the adoption of the final
2019 budget and tax levy for Monday, December 3, 2018 at 7:00 p.m. APIF, motion carried.
13. City Council Roundtable
Donnelly-School is back in session and encouraged everyone to drive safely.
Gehler-Reminded residents of the Household Hazardous Waste Collection Event scheduled for
Saturday.
Bernhjelm-School is back in session, congratulated the new fire lieutenants and encouraged
residents to shop local.
Adjourn
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Motion by Bartholomay, second by Donnelly, to adjourn the meeting at 7:23 p.m. APIF, motion
carried.
Respectfully Submitted
Dowa P. ii&K.14.4,11.
David McKnight, City Administrator
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