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HomeMy WebLinkAbout06.01.09 Council Minutes 7a.-. COUNCIL MINUTES REGULAR JUNE 1, 2009 1. CALL TO ORDER The meeting was called to order by Mayor Larson at 7:00 p.m. 2. PLEDGE OF ALLEGIANCE Mayor Larson led the audience and Council in the Pledge of Allegiance. 3. ROLL CALL Members Present: Members Absent: Also Present: Audience: Larson, Donnelly, May, Wilson Fogarty Joel Jamnik, City Attorney; Peter Herlofsky, City Administrator; Robin Roland, Finance Director; Brian Lindquist, Police Chief; Randy Distad, Parks and Recreation Director; Kevin Schorzman, City Engineer; Lisa Shadick, Administrative Services Director; Tim Pietsch, Fire Chief; Cynthia Muller, Executive Assistant Annette Kuyper, Skip Moench, Jay Clinkscales, Terry Verch 4. APPROVE A GENDA MOTION by Wilson, second by May to approve the Agenda. APIF, MOTION CARRIED. 5. ANNOUNCEMENTS a) Pond Management Presentation - Natural Resources Jen Dullum, Natural Resources Specialist, gave a presentation on maintenance projects in the storm water facilities. The annual cost in the budget is $17,000. There are 150 ponds in the City. b) Recognize Retirement - Jay Clinkscales Mayor Larson and Fire Chief Pietsch recognized Jay Clinkscales on his retirement after 20 years of service. c) Recognize Retirement - Terry Vercb Mayor Larson and Fire Chief Pietsch recognized Terry Verch on his retirement after 14 years of service. 6. CITIZEN COMMENTS Mr. Skip Moench, 19 Elm Street, stated he paid the bill for $5,412 for the Elm Street reconstruction. The City had pictures taken of his home including windows, walls, and ceiling prior to the project in case there was any damage from the work. A window was cracked during the time of the project. City Administrator Herlofsky suggested Mr. Moench call his insurance company. Mr. Moench stated he and his insurance were stuck with paying the bill which he felt the City should have paid. His insurance had a $500 Council Minutes (Regular) June I, 2009 Page 2 deductible which the City did pay. The bill was $900. His insurance paid $400. Mr. Moench felt it should not have been turned over to his insurance in the first place. It was the City's responsibility. Mr. Moench stated he usually receives $250 from his insurance due to not having any claims. Now he will not receive that money and felt the City should also pay him the $250. Mr. Moench asked the Council if they felt this was right. He did not understand why he had to pay for something when they had proof it was okay before the project. Council was voted in to help the residents, but felt they were not doing a good job. Ms. Annette Kuyper, with the Warrior to Citizen Campaign, reminded the community about the Vietnam Veterans parade on June 13,2009. The campaign is renting a bus for veterans and their families to attend an event at the State Capitol. She encouraged residents to line the streets when the bus comes home that afternoon. They will be asking residents along the route to decorate their yards. 7. CONSENT AGENDA MOTION by Wilson, second by May to approve the Consent Agenda as follows: a) Approved Council Minutes (5/18/09 Regular) b) Approved Submission of Assistance to Firefighters Grant Application - Fire Department c) Adopted RESOLUTION R24-09 Accepting Donation 2009 Spring Skating Competition - Parks and Recreation d) Approved 3.2 Beer License - Administration e) Accepted Resignation Parks and Recreation Commission - Administration f) Received Information City Administrator Evaluation Summary - Administration g) Approved Bills APIF, MOTION CARRIED. 8. PUBLIC HEARINGS 9. AWARD OF CONTRACT 10. PETITIONS, REQUESTS AND COMMUNICATIONS a) 2008 Comprehensive Annual Financial Report - Auditors Ms. Kara Gaffy of Kern DeWenter Viere, the City's auditors, presented highlights of the report. The City was awarded an unqualified opinion, which is the best audit opinion you can get. It means the statements are fairly presented in all material aspects. The State wants cities to have 35-50% of expenditures in the fund balance. The City also has that in the policy. Right now at the end of2008 the City is at 23%. The Council approved a breakeven budget with a fund balance of23-26% with a $3500 operating deficit. This was revised to a final budget with an operating surplus of $11 ,000. In 2008 the expenditures exceeded revenues by $100,000. One reason for this is the State took away half of the market value credit which was $100,000. Councilmember May pointed out this does not mean Council Minutes (Regular) June 1, 2009 Page 3 the different areas did not come in at budget, just the bottom number came close. Ms. Gaffy agreed, but the revenues were estimated at $8.6 million. Revenues came in at $8.5 million; a $24,000 difference which is less than a 1 % variance and is incredible. Expenses are consistent between the different programs. Public Safety consistently makes up the largest portion of expenditures. Expenses were budgeted at $9 million and were revised to $8.8 million. Expenses came in at $8.9 million. This is less than a 1 % variance. Overage was due to public safety for the Republican Convention and the expense for salt in Public Works. Regarding enterprise funds, the liquor fund transferred $111,000 to the general fund and park fund to subsidize operations. The water fund expenditures went through the roof and net income is way down. The reason is for the installation of new meters. Staff has already seen an increase in efficiency in operations with finding more water that was not billed. The sewer fund expenses are never less than revenues in any City. Farmington covered the cash costs. The cash increased by $256,000. The depreciation of the capital outlay is what brings the fund down. The solid waste fund broke even for operations and the City will receive a grant from the county for this. The storm water fund did not do as well, however, the City does not have a lot of control over projects that come up. In the last year market values have been declining, so the market rate goes up. The tax levy has been increasing at a steady rate, but when the property taxes go down, the tax rate of 43% will go up slightly. The State average is 36%, but other cities receive LGA and other aids so they do not need to levy as much. Ms. Gaffy noted one comment in the report is to take care of the 1991 annexation fund with a deficit balance. The auditors encouraged staff to develop a plan to get rid of that deficit. Finance Director Roland commented on the fund balance policy saying it should be 35-40%. The City was at 43% at one point prior to losing the homestead credit in 2002 and 2003. Since then, the fund balance has declined. The other reason for a fund balance other than cash flow, is to be a savings account for any emergency situations. The general fund has pooled cash from various funds, but is kept track of in separate accounts. When the general fund goes negative in its cash balance there is borrowing between funds. Councilmember Wilson asked about control efficiency items and in absence of additional staff, he asked if the auditors had any recommendations on control options. Ms. Gaffy stated Finance Director Roland has done an excellent job in implementing all oftheir recommendations. To get rid of this comment completely, Finance Director Roland would have to give up complete control of the books and completely be an oversight of the finances. She is very valuable to the City. A controlled efficiency is the lowest level; material weakness is the Council Minutes (Regular) June 1,2009 Page 4 highest. Farmington is at the lowest. Other than recommending Finance Director Roland give up all access to the general ledger, and being able to write journal entries and do what she does on a daily basis, there are no other suggestions. Councilmember Donnelly stated in going through audits with the school district, every year that was noted. The only way to solve that is to have more people and more money. The audit was good and we have a good opinion. Councilmember Wilson stated in terms df the internal borrowing between funds, he asked if the auditors had any difficulty in tracking the flow of cash between funds. Ms. Gaffy replied no, everything is pooled and each fund is tracked in its individual account. Councilmember May asked about the inter-fund borrowing and why does the annexation fund have a deficit. Finance Director Roland stated in 1991 the City over spent the funds in legal and administrative costs amounting to $118,000. There were no revenue sources, only expenditures. In order for that deficit to go away, there would have to be a line item in the annual budget to transfer money into that fund to eliminate that deficit. Each time the City has extra cash, it has gone into the general fund and has not been authorized to be transferred to eliminate that deficit. There will be a proposal in the 2010 budget to eliminate this deficit with other sources of funding. MOTION by Wilson, second by Donnelly to accept the 2008 Comprehensive Annual Financial Report. APIF, MOTION CARRIED. b) Approve Rambling River Park Master Plan - Parks and Recreation Council had asked for a phased approach to the improvements for Rambling River Park. The Parks and Recreation Commission prioritized the improvements and developed five phases over the next 10-15 years. The total cost for all improvements is $4,760,636. The 2009-2013 CIP did identify $1 million in 2013 for improvements to the park. Parks and Recreation Director Distad explained what was included in the various phases. MOTION by Wilson, second by May to approve the master plan for Rambling River Park and the recommended phasing plan to complete the improvements. APIF, MOTION CARRIED. 11. UNFINISHED BUSINESS 12. NEW BUSINESS 13. COUNCIL ROUNDTABLE a) Council Pictures Council pictures will be taken prior to the June 15 Council meeting. b) Reduced Work Schedule This is the first week where City employees will be working 36-hour weeks. City Hall will close at noon on Fridays and this will last for 13 weeks. Council Minutes (Regular) June I, 2009 Page 5 c) 20Sth Street Parking Update The parking restrictions on 208th Street and surrounding area are working very well. There has been no overflow in the parking lot. No tickets have been issued. Councilmember Wilson asked about handicap parking options for the area. Police Chief Lindquist stated one option is a few spots on the far east end of 208th Street or designate areas in the far west end of the parking lot. Staff will have a few installed at the far east end of 208th Street before the entrance to the school. Councilmember May: Her son graduated from high school on Friday. The ceremony was held outside and was a very nice ceremony. It was the 126th graduating class from Farmington High School. Councilmember Wilson: Asked if a tour of the new high school could be arranged for the Council. City Administrator Herlofsky will check the dates of scheduled times for tours. Councilmember Wilson asked about filling the vacancy on the Parks and Recreation Commission. Administrative Services Director Shadick stated an ad will be placed in the newspaper, on Channel 16 and the website. Parks and Recreation Director Distad: The pool will open this Saturday. Information is available on the web site and the swim bus will be available. Mayor Larson: Reminded everyone of the June 13 Vietnam Veterans event at the State Capitol and the parade in Farmington upon their return. He reminded everyone Dew Days is coming up and residents should check the website for events. 14. ADJOURN MOTION by May, second by Wilson to adjourn at 8:06 p.m. APIF, MOTION CARRIED. Respectfully submitted, (//-:r-/: /y;? /7/7" ~ ~-J c:Z Cynthia Muller Executive Assistant