HomeMy WebLinkAbout08.07.23 Work Session Minutes City of Farmington
City Council Work Session Minutes
Monday, August 7, 2023
The Farmington City Council met in a work session on Monday, August 7, 2023, in the
City Hall Council Chambers, 430 3rd Street, Farmington, Minnesota.
1. CALL TO ORDER
Mayor Hoyt called the Work Session to order at 5:00 p.m.
Members Present: Mayor Joshua Hoyt
Councilmembers Holly Bernatz, Nick Lien,
Katie Porter, and Steve Wilson
Members Absent: None
Staff Present: Lynn Gorski, City Administrator
Julie Flaten, Asst City Administrator/HR Director
Deanna Kuennen, Community Development Director
Chris Regis, Finance Director
Justin Elvestad, Fire Chief
Kellee Omlid, Parks & Recreation Director
Gary Rutherford, Police Chief
John Powell, Public Works Director
Shirley Buecksler, City Clerk
2. APPROVE AGENDA
Motion was made by Councilmember Wilson and seconded by Councilmember Porter
to approve the agenda, as presented.
Motion carried: 5 ayes / 0 nays.
3. DISCUSSION ITEMS
3.1 2024 Draft Budget Discussion
City Staff have been working on the preparation of the 2024 budget since May
of this year. Staff have done an excellent job of submitting what they believe
are the needs of their departments for the upcoming year. In the preparation of
the budget, Staff incorporated the City Council priorities, which are Business
Growth, Community Engagement, Infrastructure Support, and Employee
Engagement. Details of the draft budget were included in the Council's packet.
Numerous factors brought the proposed 2024 tax levy to where it stands today.
A few of these include:
City Council Work Session Minutes
August 7,2023
Page 2 of 3
Economic Development Authority levy of$150,000
• 3% cost of living and wage adjustment for Staff
• Increase in pay plans to the 75th percentile of the market
• New finance/accounting/payroll software
• New inspection/permit software
• Increase in internal IT charges
The establishment of the 2024 budget will set the framework for our financial
health and work plan for the next year.
Discussion and comments:
The City is in a much better financial position than in past years and, for the
most part, we know what we need for projects and when to do them.
• A grant writer .5 FTE position could become full-time and shared with
another agency. This position will make a difference in applying for things
we need.
• Interested in monitoring and gathering statistics on the 75th percentile for
wages. Staff can track this easily. Other Cities are also going to the 75th
percentile. 67% of the City's budget is for employee costs.
Investment income adjusted to the market; last 18 months the market value
hasn't been able to keep up. Negative changes for two years in a row.
Capital project fund and trail maintenance includes a $170,000 budget
transfer and existing cash in the fund. Rating focuses on factors such as
going through a park, things nearby, as well as the bituminous conditions.
We need to be smart on how we plan projects; therefore, the trail on Akin
Road was included within the road project.
• Appreciate the thoroughness and predictability that the Capital Improvement
Project shows over the next five years.
• Emerald Ash Borer (EAB) — competition and limited number of contractors
and equipment may cause price increases. This is an area to either add to
the levy or find another funding source. Staff has a list of trees to be
removed. There are a lot less to be injected; many are too far gone.
• Solid waste funds — possible uses could be EAB or Rambling River Park.
Salt storage funding could possibly be used for EAB.
• The cost to remove a tree is $1,200 on average. EAB disposal has to be
controlled. Suggestion to offer $500 to homeowners to remove a tree and
choose from specific vendors; however, Staff would be managing all of these
vendors. Currently, Staff work in areas and get them all done at the same
time.
• $94,000 increase for LED lighting and bleachers at the arena is one price
heavily funded by residents but used more by non-residents. Facility
assessments performed by Kraus Anderson should be back in September
for discussion at the Council Work Session.
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August 7,2023
Page 3 of 3
• Surprised to see the levy under 10%. Appreciate the time and thoroughness
in the work Staff has put into this.
• The City has been able to hire additional Staff in Parks, allowing the
department to accomplish more.
• Residents are seeing things getting done in the community, which builds
trust and helps the City get to a standard of service.
• The School District levy referendum should be decided on within the next
two weeks.
• When we tell our story, manage the expectations of our residents, and return
what they are expecting, they see the City investing in the community.
General direction:
• What is the predictability factor if Staff takes the CIP and use the 2024
proposed budget, add 5% escalator on every line, estimate the next five
years, and show what that effect would have on revenues and potential debt.
There are bigger Cl P plans in 2025 and 2026—do we need a bigger increase
this year to be caught up?
• Council is comfortable with what is proposed. Find funding for some areas
and update the American Rescue Act Plan (ARPA) list.
• Councilmember Wilson would like to see$30,000 allocated to the CIP moved
up from 2025 to 2024.
• To set the preliminary levy by September 18, 2023, Council agreed to an
August 21, 2023, Special Work Session for continued discussion.
4. COUNCIL COMMITTEE UPDATE
No update.
5. CITY ADMINISTRATOR UPDATE
No update.
6. ADJOURNMENT
Motion was made by Councilmember Wilson and seconded by Councilmember Porter
to adjourn the meeting at 6:26 p.m.
Motion carried: 5 ayes / 0 nays.
R N
tfully submitted,
Shirley R B k ler
City Clerk