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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.