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HomeMy WebLinkAbout08-26-13-WS I't ARPEEN�HILLS Approved: October 14, 2013 CITY OF ARDEN HILLS, MINNESOTA SPECIAL CITY COUNCIL WORK SESSION AUGUST 26, 2013 5:30 P.M. -ARDEN HILLS CITY HALL CALL TO ORDER/ROLL CALL Pursuant to due call and notice thereof, Mayor Grant called to order the City Council work session meeting at 5:44 p.m. Present: Mayor David Grant; Councilmembers Brenda Holden (arrived at 5:50 p.m.), Fran Holmes, Dave McClung (arrived at 5:56 p.m.), and Ed Werner Absent: None Also present: City Administrator Patrick Klaers; Director of Finance and Administrative Services Sue Iverson; Public Works Director Terry Maurer; Community Development Director Jill Hutmacher; Finance Analyst Kyle Howard; Parks and Recreation Manager Michelle Olson; and Deputy Clerk Amy Dietl 1. APPROVAL OF AGENDA The Council accepted the agenda as presented. 2. AGENDA ITEMS A. 2014 Preliminary Budget and Levy Discussion City Administrator Klaers indicated that staff had a preliminary 2014 budget for the Council to review. Director of Finance and Administrative Services Iverson discussed the preliminary 2014 budget and levy in detail with the Council. She noted that she was still receiving numbers for the preparation of the budget, making the budget a work in progress. She reviewed proposed staffing levels for 2014. She explained that residential property values were on the rise, while foreclosures in Arden Hills were declining. Staff requested that Council review the budget further and provide direction on how to proceed. Councilmember Holden asked why TCAAP expenses were not being kept in a separate fund like in previous budgets. ARDEN HILLS CITY COUNCIL WORK SESSION—AUGUST 26, 2013 2 Director of Finance and Administrative Services Iverson stated that this could not be kept in a separate fund any longer due to GASB (Government Accounting Standards Board) regulations. She explained that TCAAP has been put in its own department within the General Fund to allow for expenses to be tracked under the new regulations. Mayor Grant requested a summary on the budget items that would be increasing in 2014. Director of Finance and Administrative Services Iverson indicated that these budget items are listed on page five of the staff memo and are mainly: public safety, curb and sidewalk repairs, a transfer to the equipment building replacement fund and TCAAP. These increases totaled about $118,698; however,there would be some offsets for TCAAP. Mayor Grant explained that the City has a levy limit of 3%. He noted that 1% equaled $33,500; therefore, a 3% levy would allow the Council to increase its budget by approximately$100,500. Director of Finance and Administrative Services Iverson commented that additional revenue in the budget totaled approximately$119,000. She indicated that if the Council wanted to achieve a 0% levy increase,the budget would need to be cut by$95,737. Further discussion ensued regarding personnel and interns. Director of Finance and Administrative Services Iverson handed out a memo to the Council on personnel and"headcount changes" in the proposed budget. Councilmember Holmes inquired how many additional FTE's would be added to the 2014 budget. Director of Finance and Administrative Services Iverson commented that the City's FTE's would remain the same, however the intern positions within the City's departments would shift. She further discussed the differences between interns and part-time staff. She noted that in 2012, the City had 30.35 FTE's with 26 full time employees. Mayor Grant explained that after this evening's budget discussion, the Council would need to decide on a levy amount. He asked if there were any expenses that the Council wanted to cut or reduce. City Administrator Klaers stated that the legal expense estimate for 2014 is increasing due to an increased use of the new City Attorney. Councilmember Holmes requested further information on the TCAAP expenses planned for 2014. Director of Finance and Administrative Services Iverson stated that $63,000 has been allotted to legal fees, financial consulting fees, professional services, postage, and miscellaneous expenses. Mayor Grant asked if the budget was prepared using potential franchise fees. ARDEN HILLS CITY COUNCIL WORK SESSION—AUGUST 26, 2013 3 Director of Finance and Administrative Services Iverson stated that franchise fees were not included in the 2014 budget. Councilmember McClung commented that when he reviews the budget he takes into consideration the totality of the impact, including the proposed taxes for Ramsey County and the school district. He is in support of the 3% levy increase at this time noting that this allows the Council some level of flexibility. He requested that staff provide further information on budget priorities and potential areas where cuts could be made and the impact to the City regarding those cuts. His goal is to reach a 0% tax levy increase for 2014. Based on information from staff, he might not be willing to make some cuts, but he would be able to explain why he was in favor of an increase. City Administrator Klaers indicated that staff will continue to work on the budget after the preliminary levy limit is set. Councilmember Werner reiterated that a 3% preliminary levy was being proposed this evening, and much of the City's increases are due to public safety. Mayor Grant asked if the Council was willing to certify a preliminary levy at 3%. The Council was in favor of the preliminary levy being set at 3%. Director of Finance and Administrative Services Iverson questioned if the Council wanted to hold the budget work session meeting earlier than November. Councilmember McClung recommended that the budget work session be held at the end of October or beginning of November to allow for additional time to review the budget. Director of Finance and Administrative Services Iverson asked if having a special session on November 12 to explain the options and then have the formal discussion on November 18 would work. The Council agreed. Councilmember Holden encouraged the Council to consider where cuts in the budget could be made. She questioned if the parks could be mowed once a week, or if staff had considered the savings by working four ten hour days. City Administrator Klaers commented that four ten hour days may lead to a turnover of City staff members. Councilmember Holmes discussed the expense of park and street maintenance in the City of Arden Hills. Discussion ensued regarding areas within the budget that could be cut. ARDEN HILLS CITY COUNCIL WORK SESSION—AUGUST 26, 2013 4 Mayor Grant requested that staff create a list of areas where cuts could be made and the list will be reviewed at a November 12 budget work session. 3. COUNCIL COMMENTS AND STAFF UPDATES Councilmember Holmes expressed frustration with the City's website. She indicated she was having a hard time navigating the new website. City Administrator Klaers commented that this topic could be discussed at a future work session. ADJOURN Mayor Grant adjourned the City Council work session at 6:54 p.m. Cl Patrick Klaers David Grant City Administrator Mayor It' EN HILLS Request for Special City Council Work Session Meeting A special meeting may be called by the Mayor or by any two Councilmembers. Reason for meeting: Budget Workshop Requested Date: 08/26/13 Requested time: 5:30 p.m. Open meeting X Closed meeting Signatr of perso s) making request: 7 Mayor or Councilmember Date Councilmember Date -This section to be completed by City staff- s Date received: Date meeting to be held: 08/26/13 Time of meeting: 5:30 p.m. Location: City Hall All necessary posting and notices have been completed. Signature of Dep ty Clerk Date City of Arden Hills • 1245 West Highway 96 Arden Hills,MN 55112-5743 Phone 651.792.7800 * Fax 651.634.5137 www.ci.arden-hills.mn.us