HomeMy WebLinkAbout08.02.21 Work Session Minutes CITY OF FARMINGTON
CITY COUNCIL MINUTES
WORK SESSION
AUGUST 2,2021
Call to Order
Mayor Hoyt called the work session to order at 5:00 p.m.
Roll Call
Present-Hoyt, Bernhjelm, Pearson, Porter and Wilson
Absent-None
Also Present-Administrator McKnight, Parks and Recreation Director Omlid, Public Works Director
Gehler and Community Development Director DiMaggio.
Agenda
Motion by Bernhjelm,second by Wilson,to approve the agenda as presented.APIF, motion carried.
City Council Teamwork and Communication
Administrator McKnight shared that a few city councilmembers have asked to place the topic of
teamwork and communication on the agenda for continued discussion.
Councilmember Wilson shared his disappointment with the city council that stemmed from the
discussion at the June 21,2021 city council work session. The city council discussed both proclamations
in general and a specific request for a Juneteenth proclamation from a resident.
The city council engaged in a discussion on what was discussed at the work session, how communication
has declined since the June meeting, potential comments made by members and the frustration that
has resulted over the past two months, how communication can improve, how issues can be handled
between members and how to move forward.
Draft 2022/2023 Budget
Administrator McKnight discussed the draft 2022/2023 budget with the city council.
The first draft of the 2022/2023 city budget included a General Fund budget of$15.8 million,
$3.5 million in revenues, a fiscal disparities number kept at the 2021 amount and a debt service
budget of$2.26 million dollars. The draft tax levy included an 8.99% increase over the 2021 tax
levy.
The city council discussed the first draft in detail at the July 2021 work session. While not
unanimous,the city council direction at that time was overall support for the budget and tax
levy where it stands but to ask staff to adjust the budget to have the increased revenues
dedicated towards projects that residents would be able to see in 2022.
To either dedicate additional dollars to city council priorities for 2022 and/or reduce the draft
tax levy for 2022 from where it stands today, two substantial revenue sources and one
potential substantial budget reduction have been identified.
• The use of$130,000 in 2020 liquor store profits can be incorporated into the
budget. (This is a potential one-time revenue)
• The use of$140,000 in dollars received from the Hy-Vee agreement can be incorporated
into the budget. (This is a potential one-time revenue)
• The General Fund fleet transfer can be reduced by$100,000.
For the sake of discussion and to start the conversation with the city council, I would propose
the following changes to the first draft of the 2022/2023 budget-
• Add the $130,000 of liquor store profits to the General Fund revenue line item to reduce
the draft 2022 tax levy to a 7.83%increase over 2021.
• Add the $140,000 in Hy-Vee dollars to the General Fund and target that same amount of
expenditures for increase trail maintenance to occur in 2022.
• Transfer$100,000 from the General Fund Transfers (vehicles) line item to be used for
two purposes. Of that amount, $50,000 can be used for additional trail maintenance in
2022 and $50,000 be set aside for the future fire engine replacement program that was
discussed at the July work session.
None of the budget changes proposed above are targeted for additional street maintenance at
this time due to the number of state/county/city street projects that are scheduled for 2022 at
this point including-
• Roundabout project at Highway 3 and County Road 66
• Mill and overlay project on Akin Road
• Reconstruction of Spruce Street and Division Streets
As a reminder, the draft budget already includes increases in funding for the following priorities
set by the city county for 2021/2022-
• Mill and Overlay Projects $318,792 (Tax Levy)
• Trail Maintenance $65,000 (Tax Levy)
• Trail Maintenance $20,000 (Local Government Aid)
• Building Maintenance $29,801 (Local Government Aid)
• Assistant City Administrator Position $150,000(Tax Levy)
Councilmember Pearson asked about the Hy-Vee dollars. McKnight clarified that the actual
dollar amount is approximately$290,000 due to interest being added and the way assessments
are collected in Dakota County. Pearson would still like to see the lax levy increase around 5%.
Councilmember Bernhjelm was in support of the proposed plan.
Councilmember Wilson asked about the $130,000 in liquor profits and supported these dollars
going to Parks and Recreation projects/CIP needs. He also support more funding for the future
fire engine replacement.
Councilmember Porter asked about the Hy-Vee dollars what would happen if they approached
the city about building a store next year. McKnight stated that everything would be on the
table for discussion.
Mayor Hoyt expressed caution about planning for the use of dollars we have not received yet in
terms of the Hy-Vee assessment.
Councilmember Porter asked how we decide which trails are fixed each year. Public Works
Director Gehler shared the approach that staff takes in prioritizing the trails in the worst
condition.
City Council Priorities Update
Administrator McKnight discussed the issue of the 2021/2022 city council priorities, specifically the item
of meeting with all of the major landowners.
Community Development Director DiMaggio stated she is about to send a communication to the major
landowners introducing herself and would be happy to coordinate the meetings based off the
communications that will be sent.
The city council was in support of this approach and staff will coordinate city councilmember attendance
as a part of these meetings.
City Administrator Update
Administrator McKnight updated the city council on the following items:
New Liquor Store
McKnight stated that the new store buildout is nearing completion and staff will start to move product
into the store at the end of this week once a temporary certificate of occupancy is obtained. The
estimated opening date is Monday,August 16,2021.
Board and Commission Openings
McKnight shared that we have received resignations from one Parks and Recreation Commission
member and one EDA member.
The city council directed staff to post the Parks and Recreation Commission due to the workload this
commission currently has.
Community Development Director DiMaggio shared with the city council the issues staff has
encountered with the EDA since she started with the city.
The city council discussed the role and structure of the EDA and directed staff to work with the city
attorney about the possibility of changing the structure of the EDA makeup to include all five city
councilmembers.
Adjourn
Motion by Porter,second by Bernhjelm,to adjourn the meeting at 6:33 p.m. APIF, motion carried.