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HomeMy WebLinkAboutCC 09-19-1985 (2) . , , . . .' Minutes of Special Finance Committee Meeting Village of Arden Hills September 19, 1985 Village Hall Call to Order The meeting was called to order at 7:10 p.m. by Chairman Rundquist. Roll Call Present: C. Rundquist, D. Evans, M. Hottinger, C. Mertensotto, E. Nesset, J, Rauenhorst, T. Rautio R. Eibensteiner, L. Erickson, E. Menze, R. Sonnek Mayor and Council Clerk-Administrator Charlotte McNiesh Treasurer Donald Lamb Parks Director John T. Buckley (7:00 to 9:00) Public Works Supervisor Robert Raddatz (9:00 to 11:00) Absent: Also Present: Approval of Minutes McNiesh pointed out an error in the minutes of September 12, page 5, paragraph 1, subsidy from General Fund to Self Sustaining Recreation, will be required in 1986, not 1985. With this correction, the minutes were approved as cor- rected. REVIEW OF PROPOSED BUDGET Chair Rundquist introduced John Buckley, parks director, to the Committee; suggested that Buckley present his responses to each of the questions posed in the September 12 minutes; and that at the end of his presentation; Com- mittee members then pose their questions of him. Summer Play~round Pro~ram (Revenue Account 101-34730) +$610 Committee had suggested raising program fees to $7.50. Buckley recommends raising fee for pre-schoolers to $7.50, not increasing elementary-age fees. Rationale for this is that ratio of counselors to pre-schoolers is higher, more supervision is needed; does not feel elementary program fee should be increased, since less supervision is required. Committee noted that neighboring communities are charging $10.00 for similar programs, and including t-shirt in this price. It was moved by Hottinger, seconded by Evans, that program fees for both pre-schoolers and elementary be increased to $10.00, and a t-shirt provided to each participant. Motion failed (Rauenhorst, Hottinger, Evans in favor, Rundquist, Rautio, Nesset, Mertensotto opposed.) Motion was made by Rautio, seconded by Mertensotto, that fee for summer programs for all youngsters be $7.50 '(no t-shirt providea.) Motion passed, (Rundquist, Evans, Mertensotto, Nesset, Rautio in favor, Hottinger, Rauenhorst opposed.) Skatin~ Rinks (101-45128) Buckley had been requested by the Finance Committee to discuss with surround- ing communities the possibility of charging organized'teams for use of rinks. He has done so; has found that none of the surrounding communities intend to do so; that it has not been done in any area that he is aware of (in sur- rounding metropolitan area); feels strongly that the amount of adverse : Minutes of Finance Committee Meeting, September 19 Page two publicity would outweigh the financial gain in charging, . Committee had requested documentation for need of additional part-time employees for rinks.,.Buckley distributed copies of a survey done by the Mounds View Park and Recreation Department, showing other cities' ratio of manpower to sheets of ice. Highest ratio was 1/2 person per sheet of ice, lowest was Arden Hills, with 1/5 man per sheet of ice. Hottinger asked if rinks are used to capacity; would it be possible to maintain fewer number of rinks after peak season? Buckley stated that "on and off" maintenance of a rink is not feasible; regular maintenance is essential in order to use at all. Rundquist and Evans asked what he expects to accomplish with additional help -- Buckley stated he would expect rinks could be cleaned more rapidly, and the quality of ice improved. Committee had questioned apparently large increase in Code #380, electric utilities. 1985 estimate is a clerical error ~t $1,175; should be $2,035. 1986 proposed budget amount provides for 10% increase in utility rates. In further discussion of total cost of skating rink maintenance, Mertensotto stated that this is a "big ticket" item; questioned if the amount of parti- cipants justifies the expenditure; recommended looking into ways to control these costs -- could we get volunteers to help maintain rinks -- would be in favor of a fee for use of ice rinks. He would like to see some of these monies diverted into providing winter recreational activities of varied types, (i.e. cross country skiing, sliding). Rautio stated that, as Finance Committee liaison to the Parks and Recreation Committee, she had scrutinized this budget closely, as well as other portions of the Parks budget; felt it was realistic and well-prepared; was surprised at the amount of questioning it received; felt strongly that the small amount of revenue garnered from fees for use of rinks would not justify the adverse public reaction that would pe generated. Sather noted that if charges were made for use of rinks, standards of maintenance would have to be upgraded; if a team is paying to use ice, it would expect it to be freshly flooded and groomed. Mertensotto asked if thought had been given to providing other winter sports activities, such as cross country skiing. Buckley stated he would look into this; results of survey currently being conducted may possibly show an interest in the Village's providing other types of winter recreation. . It was moved by Mertensotto, seconded by Rauenhorst, that the Finance Com- mittee recommend to the Parks and Recreation Committee that they look into providing winter activities of other types, and, in the process, study methods of lowering cost of maintaining ice skating rinks. Motion carried, (Rauenhorst, Evans, Mertensotto, Nesset, Rautio in favor, Rundquist and Hottinger abstained.) Committee questioned why Mounds View hockey rink is scheduled for first priority in clearing and flooding; Buckley stated this is a misstatement; is amonR the first -- high priority. Minutes of Finance Committee Meeting, September 19 Page three . Park Maintenance (101-45200 - Revenue Account 101-34790) +$200 Committee had queried increase in Code #381, Electric Utilities, Buckley explained tennis court lights at Mounds View are being reactivated; accounts for increased cost. These are metered lights, and are expected to produce revenue of $200 (but not cover cost of operation). Committee asked whether these lights are necessary. Buckley explained that there are no other lighted courts in Arden Hills; feels there is a need for one lighted site; all other courts are in too close proximity to resi- dential areas for him to recommend lighting. Committee asked reason for heaters for Perry Park; Buckley stated the heaters now being used there are 12 to 14 years old; are difficult to maintain so are scheduled for replacement in 1986. Committee noted this should probably be in "Skating Rink" budget rather than in Park Maintenance budget. Committee had suggested he prepare an answer to hypothetical question if you had to cut $5,000 from Capital' Outlay, what would be your priorities? Buckley's answer was that he cannot cut; if asked to cut $5,000, would suggest it be "across the board" of the Park Maintenance budget; with his very tight manpower situation, equipment requested is essential in order to maintain the parks in an acceptable manner. In later discussion, he did state his lowest priority would probably be the 48" walk-behind mower. Shade Tree Disease Control (224-46102) Committee had asked for justification for continuing this program, when many areas have discontinued. Buckley stated that discontinuing would save the City about $3,500 in salary of one part-time employee. However, he strongly recommended its continuance; stated that Roseville, New Brighton, and Shoreview still maintain a Shade Tree program; biggest advantage to City is in service to the residents. City contractor is selected on the basis of a bid system, thus provides them with a reference point when hiring a tree contractor to remove diseased trees, usually saves 1/3 to 1/2 in cost. Many dead trees would remain in the Village without it, resulting in safety hazard as well as unsightliness. Buckley had discussed with White Bear the results when they discontinued their program (negative -- have reinstated their program, and found it more costly to have abandoned and then reinstated the program, than if they had continued). Mertensotto and Rautio spoke in favor of continuing the program, for aesthetic and safety reasons, . Self SustaininR Recreation ProRram (Revenue Account 226-36270) +990 Additions were made to anticipated fees expected in exercise classes ($250) Halloween Party ($20), Racquetball Instruction ($100), Sports' Club ($120), and Seniors' Club ($100). Buckley distributed survey prepared of fees charged by neighboring mun1C1- cipalities for programs similar to Arden Hills', showing our fees as large or larger than most. Minutes of Finance Committee Meeting, September 19 Page four . Park Fund (227-45100) The Park Fund presently has a balance of f$257,700. Estimated future dedica- tion funds (a very conservative estimate) total $150,000. Approximately $35,000 in outstanding dedication funds can still be expected. Buckley reviewed with the Committee the long range development plans for the parks; stated that all land in this long range plan has been acquired with the exception of a small portion of land near Round Lake, and Arsenal land (if that becomes available). He emphasized that this is an "optimwn" total development plan, He estimates that all park land desired will be obtained, and initial development completed, in all parks, with remaining park dedication funds, Buckley distributed 1985 per capita capital expenditures for parks in neighboring communities, Discussion with Robert Raddatz, Public Works Supervisor In his response to the Committee's concerns in the Public Works portion of the annual budget, Raddatz stated that he had, by fine-tuning and by cutting, eliminated about $9,000 from his requests. He then reviewed each point questioned with the Committee, General Government (101-41940, Code #520) -7,600 Code #223 is up somewhat; provides for replacement of some doors in Public Works Building. Raddatz stated they are in extremely poor condition; his crew can repair some of them, but replacement with steel door would be a good investment, Code 520, Capital Outlay, provides for a new telephone system. Raddatz has now found that the system he might like to recommend could cost twice the budgeted amount; is recommending this amount be budgeted in 1986, with a similar amount budgeted in 1987, and purchase made then. Motion was made by Hottinger, seconded by Rautio, that purchase of new telephone system be deleted from 1986 budget. Motion carried unanimously. While Raddatz still recommends eventual re-insulation of the City Hall, he is now recommending this be delayed until NSP has done an energy audit of the building, and until he has devised a cost-effective method to re-insulate the building. . Streets (101-43100) Revenue Account 36990 -6,500 Capital Outlay, Code #550 -3,000 Raddatz is reducing estimate for price of truck to $52,000, and air jack by $1,000. However, he also proposes that instead of selling the used truck (estimated revenue reduction of $6,500) it be transferred to the Parks De- partment for use as a tanker truck, eliminating the necessity for their purchase of a new truck as planned in 1987 (1987 budget saving of $18,000), As a means of balancing this budget, it was moved by Hottinger, seconded by Evans, that cost of this truck-plow-sander be divided between 1986 and 1987 budget, with maximum amount possible paid in 1986 (without exceeding budget limitation) and remainder in 1987. Motion carried unanimously. , . Minutes of Special Finance Committee Meeting, September 19 Page five Hottinger suggested Raddatz explore possibility of lease rather than purchase of large pieces of equipment to see if a cost saving could be realized. . Capital Outlay - General Discussion Mayor Woodburn suggested Raddatz look into purchase of a used jetter rather than new. see if this is economically feasible. Raddatz had prepared a Capital Outlay Plan extending to the year 2000, thus allowing the Committee to see approximate lifetime of equipment. tentative future needs, Rautio asked if he felt comfortable with this plan; he stated he did, although he probably would decide against purchase of the backhoe listed; feels it is a dangerous piece of equipment when used infrequently, as would be the case in his department. Nesset noted outlay seemed heavy in 1986; could some be spread in 1987? This is partially caused by the purchase of the big truck-plow-sander, and jetter, type of purchases made only each ten years. Conclusions Motion was made by Hottinger, seconded by Evans, that Finance Committee recommend to Council that Village levy to the levy limit. Motion carried unanimously. Mulcahy asked if Committee plans to finance Youth Service Bureau outside the levy limit or within, expressed his feeling that it properly belongs within the levy limit; City's decision on whether to finance it or not should be determined by whether it can be accommodated within the levy limit. Mertensotto discussed briefly rising cost to Village of employee benefits. McNiesh suggested Committee may want to look at exploring rates with other insurance groups. Adjournment Motion was made by Evans, seconded by Nesset, that the meeting be adjourned at 10:55 p.m. Motion carried unanimously. Submitted by Shirley Marshall. ********** THE NEXT REGULAR MEETING OF THE FINANCE COMMITTEE WILL BE HELD THURSDAY, OCTOBER 24, 1985, 7:30 P.M, VILLAGE HALL. . . . " SUMMARY FINANCE COMMITTEE BUDGET ADJUSTMENTS GENERAL FUND General Fund Expenditures Cable TV Elections - Capital Outlay Employer and Employee Paid Health Insurance New Telephone System - Capital Outlay Reinsulate - Reshingle City Hall Operating Costs - Third Fire Station Building Inspection #9 Truck, Plow and Sander ($3,640 to be financed in '87) Air Jack Transfer to Self Sustaining Recreation TOTAL ADJUSTMENT General Fund Revenue Property Tax Levy Summer Playground Fees Metered Tennis Court Lights Reimbursements, Employee Paid Insurance Sale of Equipment Miscellaneous Reimbursement TOTAL ADJUSTMENT -I,700 -6,000 -1,390 -3,400 -4,200 -11,250 -200 -5,640 -I,OOO -340 -35,120 -34,745 +610 +200 -90 -6,500 +5.405 -35,120 . . <, SUMMARY FINANCE COMMITTEE BUDGET ADJUSTMENTS SPECIAL AND UTILITY FUNDS Shade Tree Disease Control Expenditures Employer and Employee Paid Health Ins< Shade Tree Disease Control Revenue General Tax Levy Employee Paid Health Insurance Self Sustaining Recreation Expenditures Employer and Employee Paid Health Insurance Self Sustaining Recreation Revenue Program Fees (+990, increased fees) (-685, broomball fees) Transfer from General Fund Water Utility Expenditures Gas and Oil Employer and Employee Paid Health Ins. Water Utility Revenue Employee Paid Health Insurance Sewer Utility Expenditures Employer and Employee Paid Health Insurance Utility Maintenance Sewer Utility Revenue General Tax Levy Employee Paid Health Insurance -20 -20 -5 -2'; -20 +305 -340 -35 +3,050 -125 +2,925 -10 -175 -2.000 -2,175 -460 -15 -475 . . .., NET EFFECT ON TAX LEVY General Fund Proposed Levy $793,555 -34,745 Revenue and Expenditure Adjustments Revenue -375 Expenditures -35,120 GENERAL FUND LEVY $758,810 1985/1986 Levy Limit Special Levies (Outside Limit) MAXIMUM LEVY 812,702 74,128 886,830 Proposed Revised Levy General Fund Shade Tree Disease Sewer Utility 758,810 3,480 124,540 886,830 Estimated Mill Rate 886,830 93,763,923 = .009458 or 9.458 mills 1985 mill rate 8.674 mills The 1986 estimated rate is about 3/4 mill or 9% over 1985 rate.