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HomeMy WebLinkAboutWK - November 27, 2012City Council Workshop Tuesday, November 27, 2012 Conference Rooms A & B 1'. Call to Order - 6:00 p.m. 2. 2013 Budget. Development Discussion 3. 2012 General Fund Budget Progress Report 4. City Investments Review - Administration © 5. Other Topics Closed Session 6. City Administrator Review End Closed Session 7. Adjournment EAV S ANDOVER CITY COUNCIL WORKSHOP MEETING —NOVEMBER 27, 2012 MINUTES The Workshop Meeting of the Andover City Council was called to order by Mayor Mike Gamache, November 27, 2012, 6:01 p.m., at the Andover City Hall, 1685 Crosstown Boulevard NW, Andover, Minnesota. Councilmembers present: Sheri Bukkila, Mike Knight, Julie Trude, and Tony Howard Councilmember absent: None Also present: City Administrator, Jim Dickinson Human Resource Manager, Dana Mekinen Others io 2013 BUDGET DEVELOPMENT DISCUSSION City Administrator Dickinson stated the Council did adopt at the September 4a` regular Council meeting a Preliminary 2013 total property tax levy of $10,631,299. The Council has the right to reduce or keep constant this levy until the final certification date of December 28, 2012. The proposed levy, if not lowered, will result in a zero percent (0 %) increase in the gross tax levy. Administration is looking for ongoing City Council direction as the final preparation steps for the December 4'', 2013 Budget/Levy Public Hearing. Property tax statements have been sent out and the City has not received any calls from residents. There are some of these statements that will show a slight increase and this is due to the home value staying consistent. The Anoka County Assessor taxable market value figures for the City of Andover reflect a 3.74% decrease in total taxable market value. Tax Increment Financing District 1 -1 will be decertifying at the end of 2012, that decertification does offset the taxable market value decrease, netting an overall 1.10% increase in taxable market value. Also impacts of the Fiscal Disparities program have an impact on the final tax rate. He stated there would be a few businesses that will challenge their valuations and try to have them decreased. He stated the back taxes for the Pov's property may be paid in 2013 and this would have an impact on the City's income. Councilmember Bukkila asked if the levy could be lowered. City Administrator Dickinson stated staff would not recommend lowering the levy at this time. It may be something that the City could look at in future years. The proposed 2013 debt levy is currently at 18.45% of the gross levy. If a large debt issuance were considered in late 2012 or 2013, the impact to the levy would not be until 2014. © Andover City Council Workshop Meeting Minutes —November 27, 2012 Page 2 Councilmember Trade asked if Christian Brothers had reached an agreement with Kotkes for a potential project. City Administrator Dickinson stated there is a purchase agreement and Christian Brothers is planning a potential project in 2013. He stated there is also a potential restaurant development contingent on the Wal -Mart project. City Administrator Dickinson stated the Open Space Commission and staff are actively pursuing additional open space purchases and working through the contingencies for the current project proposal. He stated staff would be meeting with the Lower Rum River and he would be discussing having the property treated as an agricultural project. If this happens then staff would be able to keep the project within the budget set by the Council. He stated Administration is targeting a 45% General Fund Balance for working capital. The City auditor recommends a fund balance of 50 %. The City of Andover has a low debt as compared to other cities of the same size. Two new staffing requests were made by City Departments for the 2013 budget, one a Parks and Maintenance Worker the other a Fire Technician/Inspector. The only request in the 2013 Budget recommended by Administration at this time is the Parks Maintenance Worker. This is a department that had layoffs as part of the 2010 budget process and has seen expanded © infrastructure over the past few years. With some anticipated retirements, special focus is being placed on appropriate succession planning, particularly in the Building Department. He explained the amount of work in the Building Department was expected to continue to increase and staff will work to be sure there are trained personnel to fill in for those employees that retire. Councilmember Trade asked what the City is charging for electrical permits and inspections. City Administrator Dickinson stated the City is charging the State rate. He explained the builders like to work in Andover because there is no waiting for permits. Builders are also able to get answers in a timely manner. Councilmember Trade asked if the Building Inspector position is a position the City could share with another community City Administrator Dickinson stated Hugo and Lino Lakes have joint powers agreements for this type of position. He stated it could work with a similar agreement for Andover but the community has an expectation of service and that there currently is no waiting period for obtaining permits. There is time before any changes occur in this department and staff will look at alternatives and report back to the Council. Councilmember Knight asked if there was a way to track how many homes were for sale in © Andover. He stated it appeared to be a high number. City Administrator Dickinson stated this was not something that he has tracked. He stated homes were selling in Andover and in Blaine. He continued discussing other personnel related expenses © Andover City Council Workshop Meeting Minutes —November 27, 2012 Page 3 including for a few positions to remain competitive with other government entities, Administration has placed $25,000 in the proposed 2013 Human Resource budget for salary adjustments. Pay steps for eligible employees are included in the 2013 proposed budget as well. A cost of living adjustment (COLA) is currently being explored and is a topic of union negotiations. Administration has also placed $3,000 in the proposed 2013 Human Resources budget for the purpose of reinstating an employee recognition program. Councilmember Bukkila asked what the distribution would be for the three (3) positions that would receive the salary adjustments. City Administrator Dickinson stated there is an estimated 5% increase for each position. Councilmember Trude asked if Kameron is receiving a comparable salary as a Forester. Human Resource Manage Mekinen stated a forester's salary is low. Kameron also has internal responsibilities and she is taking these into consideration, but his salary is low. City Administrator Dickinson explained the City had gone through mediation for the Public © Works contract. The union voted down the proposal and the City is continuing the negotiations. Administration is also asking the City to consider a COLA increase for the non -union City employees. He stated he would recommend an increase. He explained in 2014 there would be some changes to health care and this would have an impact on the City's budget. He stated the City may look at offering an emergency health insurance plan at that time and staff would look into these options and report back to the Council during the 2014 budget discussions. He stated the legal service contract would receive an equivalent COLA increase as the City employees receive. He explained the City's use has decreased so there would not be a change to the City's budget. He reviewed the proposed 2013 memberships and contributions. Councilmember Trude asked if Youth First program funding is adequate. City Administrator Dickinson explained there was a gap in the Youth First funding of approximately $40,000 but this was being worked on. He stated he would keep the Council informed as this continues to be worked out. He stated a portion of the Road and Bridge fund would be used for pedestrian trail maintenance. He stated if there are unforeseen problems and the City would need additional funds then he would recommend not doing any road improvements for a year and utilizing these funds. He stated staff and Ehlers and Associates are currently pursuing a refinancing opportunity related to the Community Center financings. This refinancing could save the City up to $3,000,000. The levy for the 2004 EDA Public Facility Bonds is presented as a levy that was identified in the original pro -forma analysis for the © community center. He noted that this levy was scheduled to be reduced significantly starting in 2015, the levy will be offset by a significant portion of the $635,000 YMCA annual rental payment. He explained the City would be working with the YMCA to convert their current sub- lease to a lease. He also stated based on the City's tax capacity decreasing he would not expect © Andover City Council Workshop Meeting Minutes — November 27, 2012 Page 4 the S &P to upgrade the City's rating to a AAA for a couple of years. Councilmember Trade asked if the addition made to Dynamic Sealing is on the City's tax roll. City Administrator Dickinson stated unlike residential properties, commercial properties do not take two (2) years to be on the tax roll. He explained the budget shows a net negative balance and he would recommend the City leave this as presented. This has been effective in departments looking for additional ways to save money in an effort to "balance" the budget. He explained for 2012 the City showed a negative balance but as the year has progressed that negative balance has decreased. He provided the Council a chart showing the City of Andover's tax rate compared to Anoka County neighboring communities. The only two (2) cities that decreased their rates from 2012 to 2013 were Spring Lake Park and Andover. Mayor Gamache asked what is included in the 6% intergovernmental revenue in the General Fund Revenue Chart. City Administrator Dickinson stated this includes State Aid funds, CDBG Funds and Fiscal Disparities. He stated Ramsey had turned down their grant funds for their recycling center so © Andover would be trying to get these funds. 2012 GENERAL FUND BUDGET PROGRESS REPORT City Administrator Dickinson stated the City of Andover 2012 General Fund Budget was approved with total revenues of $9,263,720 and total expenditures of $9,263,720. The 2012 expenditure budget currently is amended to $9,298,720 acknowledging $35,000 of 2011 budget carry forwards. He stated the S &P favorably viewed the monthly reporting of the City Budget progress to the City Council and the City Administration directives and departmental expectations for 2012. Councilmember Trade asked if the City would be pulling back on collaborative opportunities. City Administrator Dickinson stated there have been several collaborative opportunities that have not been cost effective. The agreement with Anoka County for the election equipment has been worked out and this will be on the consent agenda for the City Council's approval. This was an example of a favorable collaborative agreement. He stated the City has had 74 new single - family homes this year and there is an anticipated 4 more before the end of the year. He stated the City is ahead of the budget for snow and ice removal due to the good weather and the City has not had to purchase salt since 2011. © CITY INVES TMENTS RE VIE W City Administrator Dickinson stated a summary report of the City Investment portfolio to the governing body is a recommended practice and often viewed positively by rating agencies. He © Andover City Council Workshop Meeting Minutes —November 27, 2012 Page 5 - - -- provided the Investment Maturities Summary for October 2012, the October 2012 Investment - - - -- -- - - Detail Report, and the October 2012 Money Market Funds report. Councilmember Trade asked how the bank on Jay Street is doing. City Administrator Dickinson stated the bank is not doing well. There had been someone interested in purchasing it but the FDIC had turned them down so they are still currently for sale. OTHER TOPICS Posting Open Space Councilmember Knight stated he had received reports there had been hunting on the City's open space property. He asked if the City could improve the signs on these parcels and include notice that violators would be prosecuted. Councilmember Bukkila stated residents should call 911 when there are people hunting on the City's open space or on their property. This is a Sheriff issue. © Councilmember Knight stated the resident had called in the past but there had not been anything done so they did not call this time. Councilmember Bukkila stated if the violators had been caught on video then they were on private property and the property owners should have called the 911. She recommended the City send a mailing to residents to remind them to call the Sheriff's Department for these situations. Councilmember Trade stated the Sheriff's Department does not like to handle hunting violations. Councilmember Bukkila stated the City would need to talk to them because this is something that they should address. She stated it might also be the adjacent property owners that are crossing into neighboring properties. City Administrator Dickinson stated staff would look at sending letters to property owners. H © Andover City Council Workshop Meeting Minutes —November 27, 2012 Page 6 - . Lot Split Variance Request -- - — - -- - -- - -- - -- - -- -- Councilmember Trude stated the City Council had voted 3 -2 to deny a lot split variance earlier this year with the hope the property owner would plat the available lots. It is obvious a plat will not be filed because one lot was recently split. Therefore, in order to add another lot to the City's inventory she would like to make a motion to reconsider, which under Roberts Rules on the denial of the variance at an upcoming council meeting. She suggested the unique characteristics stated by Councilmember Knight at the earlier meeting could be the basis for this action. Councilmember Trude also asked staff to proceed with vacating the street easement on this parcel since it will not be needed once the nearby intersection with Nightingale becomes a full movement intersection. Councilmember Bukkila stated this had been reviewed and voted on by the City Council already. Councilmember Trude stated if the Council acts to change the vote then he could split the lot now rather than in three (3) years. He is interested in doing the additional split. City Administrator Dickinson stated this could possibly be added to the City Council meeting on ® December 18'h. WDE Presentation Update Councilmember Howard stated he had requested City Administrator Dickinson schedule a follow -up on the WDE Presentation. There has been some activity on the property and he would like an update on what is happening. City Administrator Dickinson stated they are trying to extract fluid out of the land fill. He will schedule another MPCA presentation for the City Council. Recess and Reconvene Mayor Gamache recessed the City Council workshop meeting at 7:23 p.m. to a closed session of the City Council to discuss City Administrator Review. The City Council reconvened at 7:58 p.m. Animal Trapping Petition Mayor Gamache stated the City should expect to see a petition from the Round Lake Association © in regard to animal trapping on the lake. They do not want to see animal trapping on the lake. © Andover City Council Workshop Meeting Minutes -November 27, 2012 Page 7 ADJOURNMENT - - — - -- - - -- - _ .- - - - - -- - - -- - - Motion by Councilmember Bukkila, Seconded by Councilmember Trude, to Adjourn the November 27, 2012 City Council Workshop. The motion carried unanimously. The meeting adjourned at 8:01 p.m. Respectfully submitted, Tina Borg, Recording Secretary H \-I