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