HomeMy WebLinkAboutCC 09-19-1985 (2)
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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
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Minutes of Finance Committee Meeting, September 19
Page two
publicity would outweigh the financial gain in charging,
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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.
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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
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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,
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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
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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.
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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.
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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.
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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.
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THE NEXT REGULAR MEETING OF THE FINANCE COMMITTEE WILL BE HELD THURSDAY,
OCTOBER 24, 1985, 7:30 P.M, VILLAGE HALL.
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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
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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
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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.