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HomeMy WebLinkAbout08.12.19 Work Session MinutesMEM CITY OF FARMINGTON CITY COUNCIL MINUTES WORK SESSION AUGUST 12, 2019 Mayor Larson called the work session to order at 6:15 p.m. Roll Call Present-Larson, Bernhjelm, Craig, Donnelly and Hoyt Absent-None Also Present-Administrator McKnight, Public Works Director Gehler, Community Development Director Kienberger, Police Chief Rutherford, Fire Chief Elvestad, Human Resources Director Gabbard, Finance Director Malecha and Parks and Recreation Director Distad Agenda Motion by Bernhjelm, second by Craig,to approve the agenda. APIF, motion carried. Heritage Preservation Commission Ordinance Update Community Development Director Kienberger reminded the city council of recent discussions that provided staff with the go ahead to reestablish the Heritage Preservation Commission (HPC). City staff is proposing that the powers and duties of the HPC be assigned to the Planning Commission. This will allow action to occur on required permits without removing the city council ability to appoint a separate commission in the future if desired. City staff worked with the city attorney in developing draft language amending the existing HPC ordinance. The consensus of the city council was to move forward as proposed on this issue and bring it back to the city council for formal consideration. Draft 2020 Budgets Finance Director Malecha presented the draft 2020 budgets for city council review. General Fund At the July 8, 2019 work session, city staff presented the city council with a zero percent levy increase: August 12, 2019 Work Session Minutes - 1- 2019 Budget 2020 Proposed Increase/(Decrease) Revenue $3,199,486 $3,406,372 6.47% Expenditures $13,007,794 $13,637,563 4.84% Fiscal Disparities $2,225,003 $2,240.713 0.71% General Fund Levy $7,583,305 $7,990,378 5.37% Debt Levy $3,212,460 $2,805,387 (12.67%) Net Tax Levy $10,795,765 $10,795,765 0.00% The consensus of the city council was to stay at the zero percent for 2020. The city council asked staff to bring back options to increase the levy one percent with that money going towards building maintenance projects. Staff proposes the following priority one projects from the 2017 facility analysis if the levy is increased. Fire Station#1 ✓ Provide Automatic Door Operations at Main Entrance $20,000 ✓ Replace 17 Interior Doors and Hardware for ADA $33,000 Rambling River Center ✓ Replace eight interior Doors and Hardware for ADA $16,000 ✓ Replace Front Desk Counter for ADA $5,000 ✓ Replace Existing Water Main in Garage $27,000 Engineering/Design Fees $7,575 TOTAL $108,575 Councilmember Craig asked what the ADA issues included. Parks and Recreation Director Distad shared it was primarily door/door handle issues in both buildings. Councilmember Bernhjelm supported increasing the levy now to address these issues as opposed to waiting for later. The consensus of the city council was to keep the 2020 levy at zero percent and have staff bring back 2020 building projects once the amount of dollars available for 2020 is better known. Debt Service Funds The Debt Service Fund budgets provide funding for scheduled debt principle and interest repayment obligations as well as all fees associated with city debt. The 2020 debt levy is 12.67 lower than 2019 due to reduced debt obligations. August 12, 2019 Work Session Minutes -2- Park Improvement Fund The Park Improvement Fund 2020 budget includes$25,000 in park development fees and $75,000 in liquor store profits along with $8,245 in rental income and $3,500 in investment revenue. Projects proposed for 2020 include $3,000 for a Prairie Waterway shelter roof, $6,000 to resurface the basketball court at Westview Park and $30,000 to replace the backstop at Feely Fields#1. Schmitz-Maki Arena The arena operational budget is very similar year to year. The current budget has a loss of $7,840. Malecha stated this budget would be reworked and brought back to the city council with a break-even budget. Cable Communications Fund This budget receives funding quarterly from franchise fees and PEG fees. At the July 8, 2019 work session, city staff proposed using some of these franchise funds for a one-time project. This work is still in progress. Fire Capital Projects This fund is now retired with the purchase of Engine 11 in 2019. General Capital Equipment Fund This fund is used for the purchase of capital equipment for many departments. Purchases proposed in 2020, to be reviewed as a part of the capital improvement plan, include police vehicles, police and fire equipment and department vehicles. Maintenance Funds Large-scale maintenance and replacement costs for streets,trails and buildings based on their respective capital improvement plans are included in this fund. The 2020 budget includes pavement management projects in the amount of$627,033 that will be reviewed as part of the capital improvement plans. Liquor Store Fund The liquor store budgets are estimated to produce a profit of$302,808 in 2020. The transfers from the liquor store fund include $61,452 in administration costs and $75,000 to the Park Improvement Fund. August 12, 2019 Work Session Minutes -3- Water Fund The city operates and maintains its own waster system. The 2020 budget includes the construction of a new water tower in the north part of the city. Sanitary Sewer Fund The city is part of the metropolitan regional wastewater treatment system fun by the Met Council. Wastewater collected in the city is discharged to regional trunk lines that flow to the wastewater treatment plant in Empire. The Met Council charges all cities for the operation and maintenance of these systems based on actual flow measured through volume weighed annually. Farmington's charges for 2020 will be $1,390,877 which is roughly$66,000 higher than 2019. Mayor Larson asked that the discharge numbers be reviewed to ensure accuracy since there was an issue a number of years ago. Staff will follow up on this issue. Solid Waste Fund The city operates solid waste collection services within the city and has the benefit of having a single hauler community. Street Lighting Fund The city owns and maintains streetlights primarily in the downtown and Vermillion River Crossings area. Expenses associated with our lights are budgeted for in this fund with revenues generated from a quarterly fee paid with other utilities. The city council was comfortable with the 2020 budget as it stands. Review 2020-2024 Capital Improvement Plan Public Works Director Gehler presented the capital improvement plans (CIP) for city council review. There are several sources of revenue for the plans including the tax levy, local government aid, utility enterprise funds, trunk funds, Municipal State Aid dollars, liquor operation proceeds and debt. Gehler shared the CIP's are a five-year look forward but year one is the most important year to consider. Capital projects and purchases are generally$5,000 in value or greater that replace or significantly improve existing assets. The CIP is comprised of the following components: 1. Street Reconstruction 2. Pavement Management 3. Utilities (Water, Sanitary Sewer, Stormwater) 4. Vehicles and Equipment August 12,2019 Work Session Minutes -4- 5. Trail and Sidewalk Maintenance 6. Parks Improvement 7. Building Maintenance Street Reconstruction Gehler reviewed the Street Reconstruction CIP. The 2020 budget includes a turn lane at 209th Street on Highway 3 and participate in the NE Farmington Study with Dakota County and Empire Township. The next major projects is the reconstruction of Spruce Street and Division Street in 2023. Pavement Management This CIP includes the scheduled crack sealing, seal coating and mill and overlay work that is done on city streets. The 2020 budget includes a significant amount of mill and overlay work and a reduction in seal coating. Gehler explained the issue with pavement that was used in the 1990's and how it is deteriorating faster than expected. Equipment Replacement This CIP encompasses vehicles and equipment across all departments. The 2020 budget has always been targeted as the year where significant investments would start to be made in this area. Gehler shared that significant points of the 2020 plan include the purchase of a tractor and blower primarily for snow removal and the purchase of a plow truck from the storm water fund. Trail and Sidewalk Maintenance Work on city trails and sidewalks continues to be an important issue. Gehler reviewed the amount of funding available for 2020. Administrator McKnight stated that this is an area that continues to need additional funding. Councilmember Donnelly asked about the work around the Storm Water Pond Ann area. Gehler stated that work had started in this area. Donnelly expressed some concerns about the work that had been done and asked staff to review this work. Water Fund The 2020 CIP includes the construction of a new water tower. August 12, 2019 Work Session Minutes -5- Sanitary Sewer The 2020 budget includes continued sanitary sewer lining projects. Gehler noted the purchase of a new vacuum truck is scheduled for 2021. Gehler noted the fund balance in this fund is healthy and no increase in the fees for this fund will be proposed for 2020. Storm water The 2020 CIP includes the traditional work that occurs with our stormwater system. City Administrator Update Administrator McKnight reminded the city council of the upcoming Coffee with the Council that starts this week and the tour with the Parks and Recreation Advisory Commission scheduled for Wednesday. McKnight reminded the city council that applications are now being taken for a vacant seat on the Planning Commission. The city council asked that these interviews be scheduled for September 16, 2019. McKnight reviewed the recent intoxicating liquor license violations. McKnight asked the city council about a boards and commission reception/meeting. The city council would like to hold a year-end summary meeting in early December. Adjourn Motion by Hoyt, second by Craig, to adjourn the meeting at 7:38 p.m. APIF, motion carried. Respectfully Submitted David McKnight, City Administrator August 12,2019 Work Session Minutes -6-