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HomeMy WebLinkAboutCCWS 08-09-2004 ~ . ~~HILLS Approved: September 13,2004 CITY OF ARDEN HILLS, MINNESOTA COUNCIL SPECIAL WORK SESSION MONDAY, AUGUST 9, 2004, 7:00 P.M. CITY HALL COUNCIL CHAMBERS, 1245 WEST HIGHWAY 96 1. Call To Ordcr Mayor Aplikowski called the meeting to order at 7:10 p.m. Present: Mayor Aplikowski, Councilmembers: Gregg Larson, David Grant, Brenda Holden, and Lois Rem. Staff present: Administrator, Michelle Wolfe; Finance Director, Murtuza Siddiqui; Operations & Maintenance Director, Thomas J. Moore; and Community Development Director, Scott Clark. Others present: Greg Brown, City Engineer/URS 2. Preliminarv 2005 Budl!:et . Murtuza Siddiqui opened up the meeting with an overview of the proposed preliminary budget. He mentioned that staff and Council had two prcvious meetings to discuss budgeting assumptions. He indicated that at the June 21, 2004 Work Session, Council provided a general framcwork for staif to prepare the budget with the following assumptions: A proposcd levy to be bctween 3% and 4%; to estimate a 3% aruma I salary increase; to increase the health/dental bcnefits contribution to $533 per month. Mr. Siddiqui mentioned that the preliminary budget was prepared with a 3% levy increase. He indicated that historically, thc lcvy revenue is conservatively budgeted at less than 100% to take in account pctitions, delinquencies, and fiscal disparities. Hc also highlighted the items mentioned below: . Salary adjustments as part of COLA is budgeted at 3%. . City contribution to health/dental benefits for non-bargaining staff has been incrcascd to $533/employee. . All technology upgrades, ineluding thc purchase of a copier has been budgeted as previously discussed by the Council. . Construction and road maintenance costs (PMP) wcre rcviewcd by staff and the Engineer and have been reduced with some deferred to future years. Two projects that were planned for 2005, namely repainting of the watcr towcr and SCADA have been deferred pending further analysis. This reduction amounts to $710,000. $30,000 remains for watcr tower testing. . . Operating costs in the amount of$82,000 have been budgeted for the new Maintenance Facility. \\Earth IAdmin \Council\Minutes\ W orksession \2004108-09-04.doe ARDEN HILLS CITY COUNCIL WORKSESSlON AUGUST 9, 2004 2 . . $12,000 has becn budgeted for on-going service fees rclated to credit card implementation. . Revenue reimbursement for the half-time position from the Lake Johanna Fire Department has been eliminated as they hope to hire a full-time Fire Marshal. Mr. Siddiqui mcntioned that this budget cun'ently includes funding for a full-time inspector position. Ms. Wolfe mentioncd that Mr. Clark and her will be coming to the Council next month for a discussion with regards to this position. . The Board of Water Commissioners has proposed a water rate increase of5 cents/lOOCF. This translates into a ratc increase of 26% for Arden Hills compared to the rate we have been paying to St. Paul. A final dctcrmination will be made in October. The preliminary budget includes this proposed increase. Councilmember Larson asked the staff if they had inquired with Board as to the reason for the increase. Mr. Siddiqui mentioned that he intends to follow-up. He also encouraged the Council Members to call the Board to express the Council's concern for the 26% proposed rate increase. . TCAAP revenues and expenditures are projected to decline due to the fact that the planning line item, which eomprises 60% ofthe total TCAAP budget, will be significantly completed in 2004. Mr. Siddiqui infi.>rmed the Council that the projected expenditures exceed projccted revenues. He said that the VariallCe was primarily due to funding construction projects from fund balances. . Mr. Siddiqui mentioned that thc Preliminary 2005 Budget is 2.9% lowcr than the Adopted 2004 Budget. He also noted that the City's past budgeting practices only included dcpreciation charges fi.lr the capital improvements in the enterprise funds. The Preliminary 2005 Budget reflects the true cash outlays for the capital improvements. Both types of budgeting practices are common and acceptable. Also, he explained that the overall proposed 2005 capital expenditures are lower than 2004 expenditures. Therefore, if the true cash capital improvements costs are included in the 2004 Budgct, the overall reduction is much greater at 9.4%. Councilmember Holden asked that Council have a full discussion about what types of equipment/items Arden Hills should pay at the Fire Station. Councilmember Larson mentioned that Arden Hills had been paying for the Fire Station I costs for the past few years, Ms. Wolfe pointed out that Shoreview City Administrator T elTY Schwerm has been accumulating historical data dating back to the early 1980's to determine who has paid for what items. Ms. Wolfe mentioned that the Fire Board has approvcd a budget which includes funding for a full-time Fire Marshal position. Councilmember Larson said that Lake Johalma will be using $25,000 (one time) from the general fund to contribute towards the full-time position to reduce impact on the cities. Councilmember Larson mentioned that Celebrate Ardcn Hills should not be part of the Mayor alld Council's budget. lIe mentioned that Recreation might be a better fit. Ms. Wolfe mentioned that staff will look for another appropriate department, perhaps Administration or Community Serviccs. . Couneilmember Holden asked 0 & M Director Tom Moore the reason for rcplacing the two 0 & M trucks. Mr. Moore explained that thc replacement cycle is seven years and that both trucks are past the time {rame. He said that they are aging and have front damagc. He indicated that ---- ARDEN HILLS CITY COUNCIL WORKSESSION AUGUST 9, 2004 3 . the front ends have been replaced twice in eight years due to damage from snow plowing at a cost of $3, I 00 each time. He said the trucks are under-sized for the job requirements and are going through wear and tear. Councilmembers asked that staff provide a maintenance report on trucks prior to making a replacement decision. A comment was made by a Councilmember that we need to look at re-sizing the trucks. Mr. Moore said that shortly he will have a computer program that will track maintenance records by truck. Ms. Wolfe mentioned that with regards to COW1ty Road E construction, City Engineer Greg Brown, URS, is working with MNDOT for speeial funding so that the City does not have to use MSA or TIF funds. Couneilmember Grant mentioned that perhaps we should do the bridge and not necessarily the sidewalk. Mayor Aplikowski asked ifthe sidewalk can be moved closer to the street or claim a part of the street. Mr. Brown said that the County would not allow claiming part ofthe street. Councilmember Holden mentioned that with regards to the Fire Capital budget, payment to Lake Joharma Fire Department should be based on an invoice and not based on the budgeted amoW1t. A Council Member mentioned that since the City is faced with a problem of diseased trees, funds should be budgeted in 2005 to address this issue. It was mentioned that the City may benefit . from the additional levy funds. A one percent increase translates into $23,000. Councilmember Lois Rem mentioned that in the future the City should consider using a better quality paper for the City's Newsletter. The Council discussed an overall review of the newsletter layout (paper stoek, masthead design, etc.). Mr. Scott Clark mentioned that he will be presenting information in September with regards to eonverting a part-time Building Inspector position to full-time. He also mentioned that Arden Hills is a unique community as eompared to comparable sized cities with major businesses and two educational institutions that require additional resources. A general consensus was reached that the City will certify to the County a preliminary levy increase of 4% over the 2004 level by September 15, 2004. Ms Wolfe and Mr. Siddiqui asked the Council if they had reeeived adequate information from the preliminary budget. The response was positive. Ms. Wolfe mentioned that a final budget will be presented in October based on the input from the Council. The meeting adjourned at 9:10p.m. Respeetfully submitted, Murtuza Siddiqui - Finanee Director . \\\V\,u~\L~\ ~~ /~~~R Michelle Wolfe, ADMINIS RAT R