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HomeMy WebLinkAbout2010-11-10 WS CC - Approved City Council 2010-11-10 7:15 p.m. Minutes of Work Session Present were Mayor Capra, Council members Linda Broussard-Vickers, Ben Fehrenbacher, Jeff Paar and D Love. Also present were Finance Director, Mike Jeziorski; City Attorney Kurt Glaser and Engineer Mark Statz. Finance Director, Mike Jeziorski provided a report on the 2010 Budget, indicating an expected use of fund balance of about $130,000. This is due to, advance purchase of the new skid loader that was programmed for 2011, reduced permit revenue and the staff costs that would have been allocated to the trail project which was delayed to next year. Council reviewed the draft budget for 2011. Based upon the adjustments and changes, Mike reports an expected balanced budget, rather than the previously anticipated use of fund balance. After discussion, consensus was that the budget should remain as proposed with the 1.7% increase in the city levy. As part of the Budget review, Council discussed utility rates. Mike Jeziorski reported on the financial status of the three enterprise funds. Staff recommends no change in water rates, but suggests an increase in the Sewer Fund and the Stormwater Fund. Consensus was that the sewer rate should be increased $3.00 per quarter and that Stormwater rates should increase $2.00 per quarter. The commercial/industrial rate would increase proportionately. Council asked for a report of the total revenue this would generate as well as a report of the impact this would have on commercial/industrial users. Staff will send this out next week. Council discussed capital equipment replacements that were built into the budget. One option that was discussed for the Massey Ferguson tractor was to continue to use it until it fails, with the understanding that it would not be repaired but replaced at that time. Staff was asked to find out how long it would take to find a replacement and what the likely cost would be. Council discussed the request of Richard Carlson to modify the assessment payment schedule for his lots in Hunters Crossing 2 and the impact this would have on the budget. The proposed change would delay principal payments for two years, allowing interest only for 2011 and 2012. Since the improvements bonds have been paid off, this revenue would flow to the General Fund. Finance Director Jeziorski reported that the proposed budget takes the delay of revenue into account. It was noted that the assessments bear interest at 6% while any money paid would likely be invested at 1.5-2.0%. Consensus was that the adjustment should be granted, since it would not set a precedent, as other assessments are attached to outstanding bond issues. This will be placed on the agenda for the next meeting. The council discussed the sidewalk plowing question. Consensus was that the City policy should not change, but that Public Works staff would be authorized to plow boulevard sidewalks when other work is done provided no overtime is authorized, but that the cost would not be charged to property owners. Safety of the sidewalks will remain the primary responsibility of the adjoining property owner The meeting was adjourned at approximately 8:15 p.m. Dallas Larson, Administrator