Loading...
HomeMy WebLinkAbout11.12.19 Work Session Minutes CITY OF FARMINGTON CITY COUNCIL MINUTES WORK SESSION NOVEMBER 12, 2019 Acting Mayor Donnelly called the work session to order at 6:00 p.m. Roll Call Present-Bernhjelm, Craig, Donnelly and Hoyt Absent-Larson 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 Councilmember Hoyt asked that a discussion on a second sheet of ice be added to the agenda. Motion by Bernhjelm, second by Craig, to approve the agenda as amended. APIF, motion carried. Final Review 2020 Budgets Finance Director Malecha reviewed the final versions of the 2020 budget and tax levy. General Fund At the September 3, 2019 city council meeting,the city council approved no levy increase for 2020. 2019 Budget 2020 Proposed Increase/(Decrease) Revenue $3,199,486 $3,569283 11.56% Expenditures $13,007,794 $13,853,685 6.50% Fiscal Disparities $2,225,003 $2,294,024 3.10% 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% November 12,2019 Work Session Minutes -1- The city is hosting the Dakota Broadband Board Executive Director. As a part of the interchange agreement, all of the human resource costs for the director are paid by the city and the city is reimbursed by the DBB. The 2020 budget reflects these costs and the offsetting revenues. Since the approval of the preliminary budge budget, the city has received the final numbers for fiscal disparities. There is an increase of$53,211 over the budget budgeted amount. The budget has been updated to include an additional transfer of$15,000 to trail maintenance, $27,371 to building maintenance and the remainder in the general fund to offset the DBB programming expenses. The 2020 budget includes the funding of a Deputy Police Chief starting July 1, 2020. The city council has given preliminary approval to start the hiring process for this position and the subsequent backfilling of to be vacant promoted positions, earlier at the request of the city administrator. Special Revenue Funds EDA-The EDA expenses have been reduced with the DBB programming costs moved to the General Fund. Ice Arena Fund -The Ice Arena Fund's budget has been similar year-to-year.The conservative budget has the arena producing a net zero at the end of the year.There is a proposed increase of fees included in the budget. Any increased usage or reduction in spending will result in better financial performance. The Transfers In includes a $40,000 transfer from the General Fund to the EDA and a $75,000 from liquor store proceeds to the Park Improvement Fund. Capital Projects Funds Cable Communications Fund -The Cable Communications Fund receives funding quarterly from franchise fees and PEG fees. At the July 8, 2019 work session, city council discussed using part of the franchise fees to fund a one-time project.That has not been included in the budget, as the city council has asked city staff to perform some additional research. This work is underway. Fire Capital Projects Fund - Engine 11 was purchased in 2019.There is no additional funding planned for 2020. General Capital Equipment Fund -The city maintains the General Capital Equipment Fund for purchases of capital equipment using dollars from the General Fund; such as police equipment, fire equipment, and vehicles benefitting the General Fund. This fund includes transfers in from November 12, 2019 Work Session Minutes -2- the General Fund for police equipment ($51,000),fire equipment ($91,545), and the surplus ($600,000)from the 2018 budget. Maintenance Fund - Large-scale maintenance and replacement costs are budgeted in the maintenance fund for streets, trails, and facilities based on the respective capital improvement plans. Costs for emerald ash borer(EAB) and township road maintenance are also budgeted in this fund. Transfers in includes$113,978 for building maintenance, $10,000 for EAB, and $3,000 for township road maintenance. The 2020 budget also includes transfers in from the General Fund for pavement preservation of streets and trails (e.g. seal coating, fog sealing, and crack sealing) of$517,033 and $125,000 respectively. Enterprise Funds Liquor Stores Fund -The two liquor stores are estimated to produce a profit of$302,808 after transfers out.The transfers for the liquor store fund include $61,452 in administrative transfers that cover payroll, human resources,finance and administration.The liquor store also transfers $75,000 into the Park Improvement Fund. The Liquor Stores Fund includes an increase of administrative support staff by 0.5 FTE.The position is currently 1.0 FTE split between Finance and the liquor store.The 0.5 FTE position would be replaced in Finance. Street Lighting Fund -The city owns and maintains streetlights primarily in the downtown and the Vermillion River Crossings.The remaining streetlights are owned and operated by the electric utility companies (Xcel Energy and Dakota Electric).The city is charged a rate per light to cover their operating costs. Expenses associated with all lights are budgeted in the Street Light fund with revenues generated from a quarterly fee paid with the other utilities. Capital improvement plans have been created for the sanitary sewer, solid waste, storm water, and water funds. Considering the long-term plans and historical operating expenses, user rates and development fees are determined to provide adequate funding while building reserve for large capital expenditures.Those plans will be discussed at the November 12, 2019 work session. Councilmember Donnelly asked about the use of liquor store profits. Malecha reminded the city council of the four pots philosophy and how the money is divided. The city council was comfortable with bringing the budget forward for consideration in December. November 12, 2019 Work Session Minutes -3- 2020-2024 Capital Improvement Plan Administrator McKnight presented the draft 2020-2024 Capital Improvement Plan for review. McKnight reviewed each of the plans individually and highlighted the 2020 CIP projects. McKnight shared that an error exists in the police equipment fund and will be corrected in the version brought to the November 18, 2019 city council meeting. Councilmember Hoyt asked about the Northeast Area Study. Public Works Director Gehler stated that the county, city and township would study the area along Highway 3 and potential future intersections at 208th Street and 197th Street. A county east/west connections study performed a number of years ago had potential plans that this new study may update. Councilmember Donnelly asked if the county was leading the study. Gehler stated the county is leading it but it was initiated by the city/township. The city council was comfortable bringing this issue forward to the November 19, 2019 meeting for consideration. Boards/Commissions Budget Discussion Administrator McKnight brought up the issue of budgets for the boards and commissions, specifically the EDA. Councilmember Bernhjelm shared that the issue of funding has been discussed at the EDA recently. Bernhjelm thought it would be good for the boards and commissions to make budget requests similar to all of the other departments. The city council was in support of this approach and asked staff to include it in the preparation of the 2021 budget process. Ladder Truck Financing Finance Director Malecha discussed the issue of financing the upcoming purchase of a ladder truck. This purchased is planned in 2021 but work to plan for and build the truck has already started. At the May 6, 2019 city council work session, the city council was in consensus to purchase a ladder truck in 2021. Since that time, staff has researched the costs of the truck and financial options. The city can choose a lease purchase agreement option with the truck or issue debt with equipment certificates. Staff provided a not-to-exceed amount of$1,200,000. The interest rates may fluctuate with both options. The final costs depends on when the contract is November 12,2019 Work Session Minutes -4- signed, prepayment discounts and trade-in value. The purchase of this truck will result in a tax levy increase over five years with the finance options provided. The city council discussed the merits of both options and were in consensus to move forward with the traditional bonding approach to purchasing the ladder truck. The city will still start to save for the replacement of the next engine purchase as well. Employee Recognition Program-Police Police Chief Rutherford presented a draft police department employee recognition policy for review. The policy addresses department awards, certificates, recognitions, and a formal employee recognition program. Councilmember Craig was in support of this program, she felt we were trailing other cities in this area. Councilmember Bernhjelm shared that the fire department has a model that the police department can use. Councilmember Donnelly thought this was overdue and was in full support. Councilmember Hoyt that this was an important part of employee retention and was in support of the program. Rutherford will bring this policy forward for city council consideration in December 2019. Water Board Options Public Works Director Gehler reminded the city council that a vacancy exists on the Water Board. The city council previously asked staff to provide options to filling the position. The options available to the city council include: ✓ Appoint one city councilmember to sit on the Water Board. ✓ Appoint a resident to fill the vacancy. ✓ Direct staff to pursue abolition of the Water Board following the procedure established in state statute. This would involve a ballot question. Councilmember Bernhjelm asked about the number of meetings the board has and the typical topics the board discusses. Gehler detailed the work the board has done the past year. November 12, 2019 Work Session Minutes -5- Councilmember Hoyt asked if we would be discussing this issue if there were no vacancy. Gehler stated probably not. The consensus of the city council was to advertise the vacancy with the other board and commission vacancies for 2020. If there are no qualified applicants, the city council may consider other options. Schmitz-Maki Arena Councilmember Hoyt brought up the issue of arena projects and a potential second sheet of ice. Hoyt shared that donors have been lined up to help pay for some of the cost of this potential project. Councilmember Craig asked how much money donors are willing to contribute. FHS Girls Hockey Coach Jon Holmes stated that FYHA has$5,000 per month and $100,000 in cash. Ice for Tigers had $100,000 and a potential $500,000 donor in the past. The school district can contribute by using lease/levy and charge up to$800 per hour for ice time. Other potential donors did not want to be made public yet. Councilmember Bernhjelm estimated that this might be a $7 million dollar project. She supports the efforts but it is a matter of funding. She needs to see all of the financial information before any decisions are made. Councilmember Hoyt shared he has had a number of conversations with parents and members of FYHA. They spend approximately$160,000 a year in ice time rentals in Farmington and just under that number in other communities. He wants to keep that money in Farmington. Holmes shared they have talked to representatives of the Super Rink in Blaine about their approach. The issue is the city fronting the bond payment. The consensus of the city council was to have the survey that is just starting completed to see if there is space for a second sheet of ice on the Schmitz-Maki site. City Administrator Update Administrator McKnight updated the city council on ongoing solid waste issues, asked the city council for direction on their 2020 retreat and confirmed that the December 2019 work session will be cancelled. November 12, 2019 Work Session Minutes -6- Adjourn Motion by Bernhjelm, second by Hoyt, to adjourn the meeting at 7:17 p.m. APIF, motion carried. Respectfully Submitted David McKnight, City Administrator November 12, 2019 Work Session Minutes -7-