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11-13-1990 CC MIN , e - e MEETING OF THE ELK RIVER CITY COUNCIL HELD AT THE ELK RIVER CITY HALL TUESDAY, NOVEMBER 13, 1990 MEMBERS PRESENT: Mayor Tralle, Councilmembers Schuldt, Kropuenske, Dobel, and Holmgren MEMBERS ABSENT: None ALSO PRESENT: John Diet2, Ward 1 Councilmember Elect; Lori Johnson, Finance Director; and Pat Klaers, City Administrator The meeting of the Elk River City Council budget work session was called to order by Mayor Tralle at approximately 5:50 p.m. The purpose of the budget work session was to review the proposed budget for 1991 and to discuss some of the budget issues that need to be addressed in order to produce a balanced budget. The budget public hearing is scheduled for December 3, 1990. Finance Director, Lori Johnson, reviewed with the City Council the Truth in Taxation notices that have been mailed out to individual property owners. Lori reviewed the difference between the levy amount increases and how this does not relate to tax increases due to valuation adjustments in the City. For example, the notice in 1989 indicated a 19% increase in levy but the City total valuation increased by 18% so there was no noticeable increase in the City taxes. Similar results are expected in 1991. The City Administrator reviewed with the City Council the status of the 1990 municipal budget. It was indicated that revenues are projected to exceed expenditures by approximately $75,000 which will be added to the City cash flow reserve as recommended by the City Auditor. The City Administrator reviewed with the City Council the $108,600 budget gap that was financed with reserves in the draft August budget. In order to eliminate this budget gap, revenues were increased $55,150 and expenditures were cut by $53,450 in order to produce a balanced budget in the amount of $2,744,350. The revenue and expenditure changes in the proposed 1991 budget are outlined in the 11/5/90 memo from the City Administrator to the City Council. In reviewing the 1991 draft budget, the City Council: 1) Concurred that having two new Officers in 1991 budget was appropriate and that these Officers should be hired as soon as possible. Concurred that the new Street employee should be hired in the fall of 1991 in order to be available for snow plowing services. Requested that funding be retained for the Police Prosecution Attorney and that if this position is not filled, then most of the associated revenues be decreased. 2) 3) City Council Budget Minutes November 13, 1990 Page 2 --------------------------~ e 4) 5) Concurred with the use of reserves in order to balance the 1991 budget. Stated its concern over the City Council contingency fund being reduced and indicated that if the Police Prosecution Attorney is not hired, then some of the Liquor Store transfers that were necessary for this service be retained and allocated toward the Council contingency fund. The City Council indicated its willingness to finance the total Chamber of Commerce request of $10,200. However, $3,200 of this request relating to signs/advertisement should come out of the Economic Development Authority budget and not the City Council contingency fund. The remaining $7,000 of the total request is included within the City Economic Development general fund budget. The City Council reviewed the Library, Shade Tree, Equipment Certificate, and Special Assessment special revenue funds and concurred that they were acceptable as presented. The City Council reviewed the Landfill special revenue fund and concurred that it was acceptable as presented. It was noted that the proposed 1991 budget is different than past budgets due to its Capital Outlay line item and the contribution to the City general fund. e The City Council discussed a request by the Landfill to assist in the Recycling Center project. The Council rejected the concept of a Grant to the Recycling Center in the amount of $25,000 to help finance a new building at the Landfill site. However, the City Council supported the idea of a loan to the Recycling Center in order for this building to be constructed at the Landfill. The City Council indicated its flexibility in the terms and conditions of this type of loan. The City Council reviewed a memo dated 11/8/90 from the Chief of Police regarding the hiring of Police Officers. COUNCILMEMBER HOLMGREN MOVED TO APPROVE THE HIRING OF TWO ADDITIONAL POLICE OFFICERS AS SOON AS POSSIBLE. COUNCILMEMBER DOBEL SECONDED THE MOTION. THE MOTION CARRIED 5-0. It was noted that both of these Officers would be hired at the entry level. The City presented meeting. Treatment Administrator noted that the City enterprise funds would be in memo form to the City Council at the December 17, 1990, The three City enterprise funds are the Liquor Store, Waste Water Plant, and Garbage. e The City Council discussed the employee benefits proposal as outlined in the 11/1/90 memo from the City Administrator. It was suggested that the Employee Committee returned to the Council to present alternative recommendations. The City Council debated the need for an additional presentation by the Employee Benefits Committee and felt that such a presentation was not needed as all of the relevant information has been made available. City Council Budget Minutes November 13, 1990 Page 3 e COUNCILMEMBER KROPUENSKE MOVED TO APPROVE THE INCREASE IN THE EMPLOYEES BENEFIT PLAN AS PRESENTED AND OUTLINED IN THE CITY ADMINISTRATOR MEMO DATED NOVEMBER 1, 1990. COUNCILMEMBER DOBEL SECONDED THE MOTION. THE MOTION CARRIED 5-0. The Ci ty employee pay plan was discussed and it was noted that the only change from the August draft is in the Senior Citizen Coordinator position. Councilmember Holmgren suggested a change in the salary for the Chief of Police; however, the Council did not reach a consensus on this issue. COUNCILMEMBER DOBEL MOVED TO APPROVE THE CITY EMPLOYEE 1991 COMPENSATION PLAN AS PRESENTED. COUNCILMEMBER KROPUENSKE SECONDED THE MOTION. THE MOTION CARRIED 4-1. Councilmember Holmgren voted in opposition due to his concern over the salary for the Chief of Police. The City Administrator updated the Council on Police Union negotiations that have started for the 1991-92 contract period. The Council indicated its support for following the approach developed over the past few contracts. e The Council discussed the wages paid to the Police Sergeants as they relate to the Union Officers and the Chief of Police. It was noted that Officers working a small amount of overtime receive as much pay for equal work hours as the Police Sergeants, as they do not get overtime pay. The Council indicated its serious concern over the amount of overtime being paid to the Union Police Officers. The Police Sergeants pay adjustment as recommended by the Administrator in his 11/5/90 memo to the City Council requested that overtime be reinstated for the Police Sergeants and that an additional third step be created in the Sergeants pay plan after five years of service at 19.5%. The City Council debated both components of the proposal and concurred with the overtime need, but not the additional step increase. The Council indicated its willingness to review this additional step increase during future budgets. COUNCILMEMBER KROPUENSKE MOVED TO APPROVE THE PAYMENT OF OVERTIME FOR THE POLICE SERGEANTS STARTING IN 1991, BUT TO ALSO LEAVE THE TWO STEP PAY PLAN IN PLACE (START AT 15% AND AFTER THREE YEARS MOVE TO 17.5% ABOVE TOP PATROL) AND THAT THE PAY STEPS WOULD BE REVIEWED DURING THE 1992 BUDGET PROCESS. COUNCILMEMBER HOLMGREN SECONDED THE MOTION. THE MOTION CARRIED 5-0. Pal'k improvements and the Park dedication fund was discussed by the City Council. COUNCILMEMBER HOLMGREN MOVED TO FINANCE THE ENTIRE PURCHASE OF THE WOODLAND TRAILS PARK OUT OF EXCESS TIF 1 AND 3 DISTRICT FUNDS. COUNCILMEMBER KROPUENSKE SECONDED THE MOTION. THE MOTION CARRIED 5-0. The City Administrator indicated that no funds are provided in the 1991 budget for a housing rental inspector. Work will continue on this program, but implementation of the program is not expected until 1992. e e e e City Council Budget Minutes November 13, 1990 Page 4 --------------------------- The Council discussed the January review of the Capital Improvement program and the fact that additional financial information is now available so that this document can be formalized and officially approved in 1991. The Capital Improvement Program is an. implementation to the City Growth Management Plan. The City Administrator was directed by the City Council to place an ad in the Star News regarding the terms that expire on the Park and Recreation and Planning Commissions. There being no further business, COUNCILMEMBER HOLMGREN MOVED TO ADJOURN THE NOVEMBER 13, 1990, CITY COUNCIL BUDGET WORK SESSION. COUNCILMEMBER KROPUENSKE SECONDED THE MOTION. THE MOTION CARRIED 5-0. The meeting of the Elk River City Council budget work session adjourned at approximately 9:40 p.m. Respectfully submitted, ?j) J:1~ Patrick Klaers City Administrator