08-30-1994 CC MIN - SPECIAL
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SPECIAL MEETING OF THE ELK RWER CIi'Y COUNCIL
HELD AT THE ELK RIVER CITY HALL... TaNING ROOM
TUESDAY, AUGUST 30,1994
Members Present:
Mayor Duitsman, Councilmembers Dietz,.ScheeL Farber and
Holmgren
Members Absent:
None
Staff Present:
Pat Klaers, City Administrator; Lori Johnson, Finance Director
1. Call Meetina To Order
Pursuant to due call and notice thereof, the special meeting of the Elk River was
called to order at 6:00 p.m. by Mayor Duitsman. .
2.
Worksession on the 1995 Budaet
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Elaine and Les Anderson, representing the Elk River Community Theater were
present to discuss the financial needs of the Theater. It was noted that the
Theater group is in its 19th year, receives no funding from the Arts Council, and
has not received any City financing for at least the last 8 years. The difficulty with
the Community Theater's expenses were discussed and the Anderson's requested
Council funding to assist them in meeting their financial obligations.
The Mayor thanked the Anderson's for their presentation and stated that the
Council would consider their request during deliberations on balancing the
budget.
The City Administrator distributed an 8/30 memo from the Street/Park
Superintendent regarding the purchase of a reversible plow from the 1994
Equipment Certificates budget.
COUNCILMEMBER HOLMGREN MOVED TO AUTHORIZE THE PURCHASE OF THE
REVERSIBLE PLOW FROM THE 1994 EQUIPMENT CERTIFICATES AS OUTLINED IN THE
8/30/94 MEMO FROM THE STREET/PARK SUPERINTENDENT. COUNCILMEMBER FARBER
SECONDED THE MOTION. THE MOTION CARRIED 5-0.
The City Administrator reviewed with the Council the Northbound Liquor Store
need to purchase an outdoor ice freezer. The low quote from two firms and a
catalogue firm was from AA Equipment Company.
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COUNCILMEMBER SCHEEL MOVED TO AUTHORIZE THE PURCHASE OF AN OUTDOOR
ICE FREEZER FROM AA EQUIPMENT COMPANY PER THE 8/22/94 QUOTE.
COUNCILMEMBER FARBER SECONDED THE MOTION. THE MOTION CARRIED 5-0.
Special City Council Meeting
August 30, 1994
Page 2
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The City Administrator indicated that the "best guess" as to the repair costs for
the roof at the Fire Station was in the $25,000-$30,000 range depending upon
whether roof structural damage exists. The City Council directed staff to proceed
in the obtaining of quotes for this repair project and indicated that if funds were
available, use of the 1994 Contingency fund would finance this project.
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The City Council discussed the 1995 Personal Services additions sheet that was
distributed on 8/29/94. Some Councilmembers noted that an additional non-
budgeted police officer was hired in 1994 and that this should meet the needs of
the Police Department in 1995. Other Councilmembers discussed the need for
police services in general, and especially when some of the commercial
establishments open in 1995-96. The City Administrator noted that the staff would
prefer the filling of the 10/94 laborer position and adding one more laborer
position in 1995 rather than not filling either position and hiring a mechanic in
1995. A continuation of the planning program was reviewed and it was noted
that this position is especially important while the comprehensive planning
process is taking place. Combining the need for accounting services with the
Administration employee that is already in the 1995 budget was discussed. It was
noted that this position is going to have to also have some experience in
personnel work. The clerical needs in the Police and Administration departments
were discussed. The Council requested more information on the Administration
clerical needs. The Administrative Sergeant promotion and the Administrative
Secretary changes were briefly discussed. For budgeting purposes, the Council
indicated its support for adding $80,000 to the City Council Contingency fund for
additions in personnel in 1995.
1995 wage adjustments and comparable worth state certification was discussed.
All of these expenditures are located in the City Council Contingency fund in the
1995 budget proposal. Once these expenditures were authorized by the Council,
then budget transfers would move these monies to the individual departments.
This is a change from previous budgets. The Council discussed the comparable
worth law and some of the anticipated changes in pay and point rankings based
on the revised benchmark point rankings that they received from the City
Administrator in February, 1994.
The City Administrator discussed the budget pages that were distributed on 8/29,
but which were not reviewed. The following items were noted:
Senior Citizen Program - This budget increased due to more conference
and employee insurance expenditures.
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City Council Contingency - The $70,000 increase in this budget has
previously been discussed by the Council as being necessary to cover
1995 employee wage adjustments and 1995 comparable worth wage
adjustments. It was noted that this fund no longer includes the
contribution to the Fire Department retirement fund. The $80,000 increase
for 1995 personnel additions will be added to this proposed budget. The
1995 proposed total will then be $220,000.
Special City Council Meeting
August 30, 1994
Page 3
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The Appropriations Summary page, the 1995 Personal Services Cost page, the
1995 Personal Service Additions page, and the 1995 Capital Outlay page that
were distributed at the 8/29 meeting were discussed. It was noted that with the
$80,000 addition in Personal Services for 1995, the budget gap is $339,000, and
that expenditures are higher than the 14.2 percent increase that was originally
presented. With this addition, expenditures would increase $564.450 or 16.6
percent and the total would be $3,959,200.
The City Administrator reviewed with the City Council the Special Levy and
Supplemental budgets. The following items were noted:
Library - This budget is proposed to increase $5,900. Most of the increases
are related to additional building expenses associated with the expansion
project, the capital outlay expenditures for shelving, and the annual
budget share of the debt payment.
Equipment Certificates - The Police and Emergency Preparedness siren
expenses are consistent with past budgets. The Street Department
request is for approximately one-half of the cost for a new loader. The
remaining expenses for the loader would come from the street equipment
reserve and from monies generated by the sale of some City property to
the UPA.
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Special Assessments - An increase was noted in the Meadowvale Park
special assessments. If no new special assessments are assumed by the
City, then this total levy will decrease in the next few years.
Sanitary Landfill - This budget is not financed by tax monies. The total is
estimated at the same amount as the adopted 1994 budget. Funds have
been shifted to allow for more professional services. Funds still are
included as a transfer to the general fund for City services.
HRA - Each line item and the budgeting process for the HRA were
reviewed.
EDA - It was noted that the total amount would not change even if the
EDA included some of the expenditures requested by the City Council.
The funding for these expenses would have to come from the
development activities line item and if more monies were needed for
development activities, then the EDA would have to use its fund balance.
The City Administrator distributed the 1994 Revenues or Source of Funds page.
The following comments were noted:
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General property tax - This category is proposed to increase $225,000 or 15
percent based on an estimate of the needed revenues to finance City
operations with a minimum tax rate increase based on an assumed
increase in the City net tax capacity. The Council can increase or
decrease this amount prior to the 9115 certification date, but can only
decrease this amount after that time.
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August 30, 1994
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ntergovernmental Revenues - An $8.400 or .91 percent increase.
hanges noted include small increases in Local Government Aid, Police
elief funds, and the gravel tax, while a decrease was noted in the Landfill
urcharge.
harges for Services - This category decreased $36,600, but this is due to
shifting the $50,000 D.A.R.E. contribution to the transfers category.
Excluding this transfer, Charges for Services increased slightly. The biggest
increases were in the plan check fees and planning and zoning fees
based on actual revenues for development activities for 1993. It was
noted that the City should not become dependent on development
related fees as these revenues fluctuate. The City hopes to cap its
administrative project revenues at $50,000, and have any additional
funding go into the administrative equipment reserve fund.
Fines and Forfeits - A $19,800 or 20 percent decrease is projected based
on 1993 actual revenues.
Licenses and Permits - A $28.400 or 18 percent increase was noted with
the most significant increase being in building permits.
Other Revenues - A $5,000 increase located in the interest line item. The
Municipal Utilities contribution remained the same as it has for the past
eight budgets as did the Guardian Angels contribution which increased a
few years ago.
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Transfers - A $15,000 or 7 percent increase was due mainly to the D.A.R.E.
transfer. Without this transfer taking place, this category would have
decreased $35,000. This decrease is located primarily in no funds being
planned to be transferred into this operating budget from the cash flow
reserve. Other changes include a decrease in the elections equipment
reserve, as 1995 is an non-election year, and an increase in the equipment
reserves to finance capital outlay items located within departmental
budgets.
This proposed budget in the amount of $3,620,200 is a 6.6 percent increase from
the adopted 1994 budget. The total increase of $225.450 is almost identical to
the proposed increase in the general property tax. Proposed revenues are
$339,000 short of the proposed expenditures.
The Council discussed all the options available to balance the 1995 budget.
Some potential expenditure cuts and revenue increases were reviewed. The
Council requested additional staff input on options to balance the budget. The
next budget worksession will be on 9/6/94 and options to balance the budget will
be reviewed at that time.
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The City Administrator stated that staff is recommending that the EDA site
improvements to create a park environment should be financed from 1995 NSP
contributions to the City and that the engineering study for the east Highway 169
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Special City Council Meeting
August 30, 1994
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frontage road system that was discussed on 8/29 should be financed with the
capital projects reserve. The Council concurred with these financing
recommendations.
The City Administrator noted that Kristy Mansfield was hired for part time summer
help and that summer is quickly ending. Staff requested Council approval to
continue using her services on a part time basis. The Council agreed to allow
Kristy to continue working with the City on a part time basis until the end of the
year and to have her wages adjusted to $6.50 per hour effective 8/31/94.
10. Adiournment
There being no further business, COUNCILMEMBER HOLMGREN MOVED TO
ADJOURN THE MEETING. COUNCILMEMBER FARBER SECONDED THE MOTION. THE
MOTION CARRIED 5-0.
The special meeting of the Elk River City Council was adjourned at 9:45 p.m..
Respectfully submitted,
.,!?a%~ j)d.u-r
Patrick D. Klaers g
City Administrator