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HomeMy WebLinkAboutCC 09-17-1987 . . . - . . Minutes of Special Council/Finance Committee ~eeting Village of Arden Hills September 17, 1987 ' Village Hall Call to Order Pursuant to due call and notice thereof, Mayor Woodburn and Finance Chairman Erickson called the meeting to order at 7:00 p.m. Roll Call Present: Mayor Woodburn, Councilmembers Gary Peck, Thomas Sather, Nancy Hansen, Jeanne Winiecki Finance Committee Members Larry Erickson, Charlotte HcNiesh, Ed Menze, Chuck Mertensotto, Eric Nesset, Trudy Rautio, Ramanik Shah, Judith Stafford, Thomas Steele Robert Rehkamp Clerk Administrator Patricia J. Morrison, Treasurer Frank C. Green, Parks Director John T. Buckley, Public Works Supervisor Robert Raddatz Absent: Also Present: REVIEW OF PROPOSED 1988 BUDGET Chair Erickson pointed out to Committee members that in the 1988 Budget, as presented, the tax levy exceed the levy limits by $82,1~. In addition to this shortfall, the Committee needs to consider whether funds for implementation of the State mandated "509 Surface Water Management Plan" (estimated cost $25,000 to $35,000) and the Pavement Management Study (recommended expenditures in 1988 total $60,000) should be provided for as well. This would bring the shortfall to $172,135. A review of the 1988 budget with department heads ensued: Summer Plav~round Pro~ram (p. 38, 39) Rev. +600 Committee had asked Buckley to consider an increase in fees for this program (presently $5.00) to $10.00. A survey of neighboring communities showed our 'fees comparable; however, Buckley suggested the fee be increased to $7.50, without t-shirts being given to the children. He predicts 250 children enrolled in the program in 1988, with additional income of approximately $600. Skatin~ Rinks (p. 40, 41) Committee questioned increase in this account as co~pared to 1987 estimate. Buckley explained that the skating season was much shorter than usual in 1987, causing 1987 expenditures to fall under the originally budgeted amount. In the 1987-88 skating season, a general skating area will be established and maintained in the new North Snelling Park. Park Maintenance (p. 42, 43) Rev. -1,000 Exp. -10,000 - 1,000 Buckley is requesting replacement of an aging 1/2 ton truck (almost ten years old, beginning to rust out) with a 3/4 ton truck. The size requested is slightly larger since the truck is being used increasingly for hauling transportation trailers, and a heavier truck will last longer and perform better. His budget also requests replacement of a Toro Groundsmaster mower, at $17,500. The mower is aging, and has had increasing hours of "down" time, something he can't afford when the grass is growing rapidly. .... . . Minutes of Special Council/Finance Committee Meeting, September 17 Page 2 Committee asked Buckley, if he had to equipment, which was most essential. reasons previously stated. choose between the two pieces of The mower was Buckley's choice, for . Committee recommended the cost of the truck be removed from 1988 proposed budget, and $500 added to Revenue for trade-in value of the old mower. It was also recommended that the mower be budgeted at $16,500, rather than $17,500, and Buckley attempt to obtain it at that lower figure. Committee questioned increase in account 109, Park Salaries. Buckley is requesting 4 part time employees, instead of 3, for the summer of 1988, because of the increased park area and equipment to be maintained, increased work in trail maintenance, and increased work with the completion of Hamline Ave and Lexington Ave. reconstruction (mowing boulevards and intersection areas). Erickson asked if residents weren't supposed to maintain boulevards in front of their homes...it was explained that much of Hamline Avenue and Lexington does not have homes fronting on the streets. The increase in code 228 (maintenance of parks and playgrounds) was prompted by increased cost of maintenance supplies and need for more of these with increased parks and equipment. Employer Paid Health Insurance (all accounts) - 3,475 . At this point, the Committee digressed to discuss the increase in code 130, ' Employer Paid Health Insurance throughout the budget. McNiesh explained that, in preparation of this budget, she had added a 15% increase in the City's contribution toward the cost of health insurance, beginning in July of 1988. She added that the City currently pays $195 toward the total cost of health insurance for each employee; charges for health insurance increased 17% this year and are expected to increase another 15% next year; based on this, there is a strong possibility, in her opinion, that upcoming union negotiations for the 1988 contract may result in an increase in the City's contribution to the total cost of health insurance for employees. In response to query, if an employee currently carries family health and dental coverage, his out-of-pocket expense is a minimum of $46.50. Delete 15% increase, which Committee estimated at $2,000. Actual calculations, including deleted finance employee, delete $3,475. Shade Tree Disease Control - 2,800 It was explained that the principal cost to the City in this account is in salaries; all costs for actual tree removal are reimbursed by property owners to the City. Removal of trees from public property (code 407) costs could not be eliminated. The number of diseased trees identified has been decreasing year by year, partly because fewer elms remain in the City, and partly because . this sanitation program has been successful. In response to Committee query as to whether the program could be discontinued except for responding to citizen requests, Buckley stated that if this were done, there probably would be many dead trees standing in the City; felt the City's contracting with a tree removal service resulted in a lower cost for tree removal to citizens; added trees are one of Arden Hills' biggest resources; the City is known throughout the metropolitan area for its beauty . . Minutes of Special Council/Finance Committee Meeting, September 17 Page 3 . and tress. New Brighton, Mounds View, and Roseville have a program similar to Arden Hills'; Shoreview removes trees from public property only and responds to citizens' complaints. Noting that the tree inspector is a full time parks employee, whose salary is a part of the levy regardless of where the time is charged, Erickson asked if a savings could result if his time in this area was switched to park maintenance, and one of the part time employees deleted, and someone outside hired to respond only to citizen concerns with their trees. Buckley replied this could be done, but we would not get the service we do now, since Dave is around all the time when calls come in. Steele noted that trees are spoken of as a renewable resource, however, not in one person's lifetime; are extremely valuable, does not think homeowners can be depended upon to call for assistance when a tree is diseased, prefer the program not become more expensive, but would not like to see it cut. McNiesh asked that the actual amOunt of time Winkel spends on the program be accurately recorded, so we know exactly what the program costs. Erickson stated he saw this as a program that was necessary in 1981, but City is now at the point where we could accomplish as much by going to a "pay as you go" inspection service. . Motion was made by Menze, seconded by Nesset, that the program be left as budgeted. Motion failed (Menze, Nesset in favor, Erickson, McNiesh, Mertensotto, Rautio, Shad, Stafford, Steele opposed). Motion was made by Steele, seconded by McNiesh, that the program be cut back to $15,500. Motion was withdrawn by Steele and seconder McNiesh. Motion was made by Nesset, seconded by Mertensotto, that the additional summer employee in Parks Maintenance budget be deleted, and Winkel be "spread a little thinner". Motion carried; Erickson, McNiesh, Mertensotto, Nesset, Rautio, Shah, Stafford, Steele in favor, Menze opposed. . Self Sustainin~ Recreation (p. 49, 50) Rev. +$2,000 Exp. -10,200 The budget suggests adding a half-time Program Director to assist in administering the present program, and additional programs that seem to be desired by residents. Committee had asked for comparison of program fees with neighboring communities, and consideration for increase in fees; Buckley's comparison shows Arden Hills fees all at a level with, or higher, than those of neighboring communities. Erickson maintained that baseball teams (which pay $50 more in Arden Hills than any where else) are usually sponsored by corporations who do not care what the fee may be. Councilman Sather pointed out that he, as a corporate sponsor, is concerned about the fee; is an important consideration when sponsoring a team. Buckley added that in order to charge fees such as this or higher, a well-maintained, adequate field needs to be provided; Arden Hills' fields are well-maintained, but are not fenced and not as large as those of surrounding communities; feels the fee is as high as the traffic can bear. It was asked if many of the teams are non-resident; Buckley replied they are mostly sponsored by resident companies and their employees are the players. Buckley added that the hockey, soccer and baseball associations are now completely parent-sponsored and operated. These associations are asking now for more and more help in maintaining the programs; feels that if some belp in scheduling and organization is not given, the parents could conceivably turn them back to the cities, which would result in highly increased work load. The requested additional program director would help in this area as well. . . Minutes of Special Council/Finance Committee Meeting, September 17 Page 4 Steele noted that the amount Arden Hills has increased its levy in the last few years has been three times the amount the inflation rate has gone up. . It was moved by Steele. seconded by Mertensotto, that the 1/2 time Program Director be deleted from this account, for savings of $10,200. Motion carried unanimously. Erickson again asked about fees...suggested Buckley increase one or two to see if it results in loss of participation or what happens. Buckley predicted persons would go to other programs or drop out. Mertensotto suggested Buckley come to the Finance Committee during the year to discuss at more length the funding for Self Sustaining programs. Committee requested Buckley adjust fees in some way to add $2,000 in income in the Self Sustaining fund. He agreed to do so. Park Fund Balance in the fund at this time is $313,444. Contributions from pull tab' operations in 1986 totalled $26,690; in 1987 contributions are expected to total $34,800, if giving continues at its present rate. Contributions from dedicated funds are lower each year as less land remains to be developed. Without the pull tab contributions. or other fund raising efforts, the fund will be depleted in the next few years, at which time park improvements or . developments will need to be funded from tax levy. Pull tab donations are not included in 1988 estimated revenue. Public Works Accounts General Government BuildinRs Exp. -$5,500 Committee questioned increase in code 223. Bldg. and Ground Maintenance. Raddatz explained that this is for costs of bringing the equipment and buildings into closer compliance with OSHA standards. The City has not had a formal OSHA inspection for many years, and fines could be as high as $30.000 to $40,000 for violations of their standards. Committee asked why, since we purchased our own telephones in 1987, and are no longer leasing phones, there was an increase in this account. Raddatz stated that the monthly cost for leasing decreased; however, an additional line was added, so the net saving per month is $41.50 $500 will be cut from this account. Committee asked about the money budgeted for building doors. Raddatz stated this is the third and last year in door replacement program; if not replaced, the doors would need extensiv~ repair. . Necessity for shop hoist was queried. Raddatz stated it would make repair work on trucks easier and save some time, but would not necessarily cut costs. It was agreed to delete this item saving $3,000. $2,000 is budgeted for blinds for the office area and Council Chambers. Committee concurred to delete~his line item as well ($2,000 saving). Raddatz explained that no additional manpower is budgeted for, although he does plan to again employ an OJT student from School District 621 (On the Job Training) at $4.00, 250 hours in 1987, 875 in 1988). . . . - . . Minutes of Special Council/Finance Committee Heeting, September 17 Page 5 Streets (p. 32, 33) Exp. -$8,850 + 60,000 $18,000 is budgeted in 1988 for code 224 (Sand, Salt, Road Mix). Committee questioned if this amount was necessary, since this much was purchased in 1987 and very little used in that mild winter. Raddatz stated that this includes, as well as sand and salt mix, hot mix for patching and all other types of road mix. The City in the past has not patched cracks, but he is planning to do some of this. Some of the material will also be used in executing the plans of the Pavement Management Study. McNiesh asked if some dollars should not then be moved to this project; Raddatz agreed that $2,500 would probably be used in this way, and could be deleted from this code. Some of the materials was used in mudjacking of the curbs also, approximately $1,500 to $1,600. Committee asked if the $40,000 budgeted in 1988 for sealcoating was part of the Pavement Management Plan and included in the $60,000 recommended for execution of this plan. Raddatz replied that the streets which would be sealcoated would be those recommended for sealcoating in the plan, but the cost is in addition to the $60,000. All of the $60,000 would be used for overlay. He would like to keep $40,000 in sealcoating this year. If it is decided not to budget for the Pavement Management Plan, he would then use $30,000 for sealcoating and $10,000 for raising curbs, fixing ditches, etc. on the streets which are sealcoated. In discussion of the total cost of the Pavement Management Plan. McNiesh pointed out that much of the $1,600,000 will be assessable to property owners, to some extent, in cases where the streets are completely reconstructed ($933,357). "Whether overlay can be assessed to any degree is not known; staff will research this (total cost of all overlay recommended in plan - $592,155.84. Total cost of sealcoating recommended is $131.651.75, now budgeted over a period of four years (assuming $40,000 per year). Committee asked if the amount budgeted for overlay this year would be "keeping up" with street deterioration...Raddatz stated that it would. It was recommended by the engineers that the plan be executed over a ten year period. It was moved by Steele, seconded by McNiesh, that the Pavement Management Plan, $60,000 be included in the 1988 proposed budget. Motion carried, Kertensotto opposed. Discussion ensued as to methods of financing this study. McNiesh pointed out that reconstruction of streets could be delayed; since they have "already gone to pot". She added that interest earned by the PIR fund could well be spent for projects like this. $84,200 estimated interest will be earned by this fund in 1988, which would just about cover the $60,000 for this and $25,000 for the 509 Surface Water Management Plan. Menze asked if the $10,000 spent to develop the plan would be wasted if it was not begun this year; Raddatz stated probably not; the plan is that every two years, it will be updated by our employees walking each street of the city and updating the computer program. If the plan is adopted, a line item will be added in the Streets Budget. $40,000 was budgeted for sealcoating in 1987. and in 1988; Raddatz stated that no sealcoating had been done, since he wanted to wait for results from the Pavement Management Study to utilize its recommendations, and it was not completed before sealcoating could be accomplished for this year. A portion of this was used to repair the Glenview Avenue storm sewer; $17,000 remains in .... . . Minutes of Special Council/Finance Committee Meeting, September 17 Page 6 fund. Committee asked if this $17,000 could be carried as revenue into the 1988 budget, and used to pay for the Pavement Management Plan. Mayor Woodburn discussed the budgeting philosophy of not carrying over unexpended funds, but .' putting them into General Fund reserves. Motion was made by Rautio, seconded by Nesset, that $6,350 be deleted in code 381, and Phase I of the street lighting plan not be implemented in 1988. Paul Malone, who had chaired the Street Lighting Subcommittee as part of the Public Safety/Works Committee, stated that the residents have been told during the past year, whenever they inquired about street lights, that this plan was going into effect in 1988 and their request would be considered at that time. Motion carried, Shah opposed. Storm Sewers (p. 34, 35) Exp. -2,000 Committee questioned larger amount budgeted in code 303, Engineering Fees. The fees this year covered reconstruction of the Glenview storm sewer...any engineering done on streets that is not included in a special project (such as Hamline Avenue reconstruction). Committee also questioned code 437, Other Miscellaneous Expenses. Raddatz explained that this covers expenses in cleaning out the sewers. He explained that sediment has been building up in the pipes, plus they plan to clean up the outflow areas as well. Costs are for concrete block, catch basins, pipe, discharge covers, etc. Committee concurred to reduce the budgeted amount for code 437 by $2,000. 4It Committee discussed the 509 Surface Water Management Plan previously described. Motion was made by Nesset, seconded by Rautio, that $20,000 be added to the budget to finance this plan at a minimal level. Motion carried unanimously. Investigation of the deadline for completion of this plan revealed it to be October, 1989. Motion was made by McNiesh, seconded by Rautio, that the $20,000 be stricken from the budget in 1988. Motion carried unanimously. Water Utility (p. 63, 64) Raddatz stated that he had budgeted for replacement of the water van. He proposes now to delay this purchase until 1989; at that time he would like to purchase a larger cargo or step Van (which would cost $25,000) in order to be able to carry more equipment and supplies. (This change does not affect the levy). Sewer Utility (p. 65, 66) Motion was made by McNiesh, seconded by Rautio, that since the new jetter, budgeted at $34,980 in 1987 and $31,800 in 1988, will be delivered well before the end of 1987, the entire balance be paid in 1987. Motion carried unanimously. (This also does not affect the levy, since these are enterprise . funds). Review of Administrative Accounts Administrative Office Exp. -27,145 + 3,500 Financial Officer, at a total account, the remainder to the Funds are budgeted for th~ addition of a Chief cost of $35,000 ($28,000 to be charged to this , . . . . . Minutes of Special Council/Finance Committe~ Meeting, September 17 Page 7 Sewer and Water Utilities). Morrison presented an alternate plan to the Committee, which moved the present accounting clerk into a higher classification, redistributed duties in the office, and added a clerk-typist, at $6.00 per hour, which would cost $20,000 per year, with fringes and benefits, (again charging part of the cost to the water and sewer utilities), plus consulting costs with McNiesh. She pointed out that the work load in the office constantly increases, with 1988 bringing a major election as well, at about the time the budget is being prepared. She also stated that there are areas in her administrative functions on which she would like to be able to spend more time; examples include preparing job description, procedure manuals, training so jobs could be rotated, comparable worth studies, handling of citizens concerns and complaints. Motion was made by Rautio, seconded by Steele, that given the status of the 1988, funds for an additional employee be stricken from the proposed budget. Nesset, speaking in favor of the motion, noted this, budget-wise, was not a good year to add employees, and the proposal could be considered in 1989. Steele noted that the additional tasks Morrison discussed would be desirable objectives, but feels Committee does not have the sense of whether the Council desires this; felt the direction for this should come from Council. Council member Hansen stated that she felt the Administrative Office would be done a disservice if this were stricken entirely from the budget, felt additional help was needed; needs could perhaps be met with a part time receptionist-typist. Motion carried (McNiesh opposed). Deleting the Finance Officer and PERA/FICA reduces code 107 $20,800, code 120 $2,445 and code 570 $3,900. Motion was made by Stafford, seconded by Mertensotto, that a part time person, at 25 hours per week, $7,500 for the year, be recommended. Motion failed (Stafford, McNiesh, Mertensotto, Shah in favor, Erickson, Menze, Nesset, Rautio, Steele opposed). Motion was made by Erickson, seconded by Nesset, that $3,500 be added to the budget for consulting service in 1988 by Charlotte McNiesh. Motion carried unanimously. Mayor and Council (p. 10, 11) Exp. -500 Morrison stated that $500 had been budgeted in code 351, Printing and Publishing, for preparation and printing of a publicity brochure for the Village, and this could probably be done for $200. Motion was made by Nesset, seconded by Erickson, that $500 be deleted from the budget, on the basis that such a brochure was unnecessary. Motion carried (McNiesh opposed). Human Ri~hts Commission (p. 24, 25) Committee had asked for statistics on Arden Hills' use of the Youth Services Bureau. Winiecki stated that 51 individuals had used their services in 1986. In 17 of these cases, at least 3 months of counselling ensued, with the families involved as well. 28 were served by the employment program, 16 seniors in Arden Hills employed youngsters through the service, 6 youngsters were guided through the restitution program. There are not clear statistics for 1987 as yet. Committee briefly discussed the possibility of this donation, plus the Senior Van donation of $2,000, being funded from donations from charitable gambling; Winiecki noted that the Youth Services Bureau had stated they would ~ solicit funds from charitable gambling. No action was taken. . . , Minutes of Special Council/Finance Committee Meeting, September 17 Page 8 Municipal Land and Buildin~s (p. 55, 56) Exp. -45,000 This fund has been re-established in this budget to account for expenses in purchase of the land adjoining the Public Works Building; $158,800 is levied in. 1988 to cover the cost of parcel A. Motion was made by Erickson, seconded by Nesset, that this levy be reduced $45,000 in 1988. Motion carried unanimously. $100,000 is levied for paying the PIR fund back for Hamline Avenue improvement expenses. Committee briefly discussed reducing this levy. No action was taken. Summation McNiesh, noting that the PIR fund is expected to generate interest of $84,200 ' in 1987, suggested this interest be used to balance the 1988 budget to the extent that the cuts already recommended by the Finance Committee do not meet the levy limit. Committee concurred with this suggestion, and recommends this course of action be taken. Adjournment The meeting was adjourned at 12:50 a.m. Submitted by Shirley Marshall . . ,. . . SUMMARY OF BUDGET RECOMMENDATIONS SEPTEMBER 17 FINANCE COMMITTEE MEETING . General Fund P. 38, Summer Program Fees (raise to $7.50) P. 42, Delay Truck Purchase (No trade-in) Reduce Mower Price (Trade in 1/35) Cancel Extra Seasonal Employee Delete Employers Increase, Health Ins. P. 22, Telephones Blinds Hoist P. 32, Code 224, Move to PMP New Line Item, PHP Code 381, Delay Phase I, Street Lighting P. 34 Code 487, Delay Some Sewer Cleaning P. 16 Delete Additional Employee Delete Equipment for Additional Employee Add Consultant P. 10 Delete Publicity Brochure . Self Sustainin~ Recreation P. 49 Delete Additional Employee Increase Program Fees (This will reduce transfer from G.F.) Municipal Land and Buildin~s Reduce tax levy Net Reductions, General Fund Additions in Revenue Reduce General Fund Levy Reduce Municipal Land and Buildings Levy Transfer from PIR Fund for PHP REDUCTION IN TAX LEVY Additional Transfer from PIR Fund Required . Water Utility P. 63 Delete Water Van Purchase Delete Finance Officer, PERA/FlCA Reduce Employers' Contrib, Health P. 65 Delete Finance Officer, PERA/FICA Reduce Employers' Contrib, Health Revenue Expenditures $ +600 -$10,000 -1,500 -1,000 +00 -2,800 -3,475 -500 -2,000 -3,000 -2,500 .' +60,OOO-} -6,350 -2,000 -23,245 -3,900 +3,500 -500 -10,200 +2,000 +1 , 600 -7,970 -45,000 -7,970 +1,600 9,570 45,000 60,000 114,570 24,565 139,135 -10,000 -2,905 -345 -2,905 -470