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HomeMy WebLinkAboutSP September 20, 1989 C}\ CITY of ANDOVER Special City Council Meeting - September 20, 1989 7:30 P.M. 1. Call to Order 2. 1990 Budget 3. 10:00 P.M. 4. Adjournment ~::;:" - '~ ,. , CITY of ANDOVER 1685 CROSSTOWN BOULEVARD N.W. . ANDOVER. MINNESOTA 55304. (612) 755-5100 .. SPECIAL CITY COUNCIL MEETING - SEPTEMBER 30, 1989 MINUTES A Special Meeting of the Andover City Council was called to order by Mayor Jim EI ling on September 20, 1989; 7:30 p.m., at the Andover City Hall, 1685 Crosstown Boulevard NW, Andover, Minnesota. Councilmembers present: Jacobson, Knight, Orttel, Perry Councilmembers absent: None Also present: Finance Director, Howard Koollck; City Planner, Jay Blake; Fire Chief Bob Palmer; Building Official, Dave Almgren: Public Works Supervisor, Frank Stone; Park and Recreation Commissioner Chairperson, Marc McMullen; City Administrator/Engineer, James Schrantz; and others PROPOSED 1990 BUDGET DISCUSSION Mr. Koollck summarized the results of the August 29 Special Counc II Meeting and the resulting budget before the Council. The budget has $55,345 more expenditures than revenues plus the special allocatIon of $69,000 from the Administrative Trust Fund talked about at the last meeting to balance the budget. Counc II also noted a special legislative session has been called for next week, and their action could have a large Impact on this budget. Mr. Koollck explained the budget must be certified by October 1. The Council will have to ask for the maximum levy, plus cuts must be made to balance It. Another option would be to fund the entire $125,000 shortfall from the Administrative Trust Fund. He also noted a projected deficit in the 1989 budget. Discussion was then on items In the proposed budget that can be cut to balance the revenues and expenditures. Chief Palmer was concerned about capital equ i pmen t. With that Item cut, the Department Is unable to buy breathing apparatus, etc. Assistant Fire Chief Glen Smith noted Truck 4881 has needed repairs since 1985 and could have been repaired for one-half the amount It will cost now. Chief Palmer then agreed to budget only half the amount needed to repair 4881, which will cut the expenses by $20,000. After discussion the fol lowing items In the proposed budget were amended: FIRE PROTECTION 4220 221 Repalr/Malnt-Vehlcles - reduce the amount by $20,000. -- Special City Council Meeting September 20, 1989 - Minutes Page 2 (Proposed 1990 Budget Discussion, Continued) COLD STORAGE BUILDING 4198 530 Improvements - Council agreed to reduce the amount by $5,000. MAYOR 4131433 Dues/Registrations - Council agreed to reduce the amount by $3,000 leaving a balance of zero. PLANNING AND ZONING COMMISSION 4191 433 Dues/Registrations - At first it was proposed to reduce the item to zero. Mr. Blake then explained the program that has been started to train the Commissioners, Inviting them to training sessions and conferences. He urged the Council to either reinstate a portion of the budget for this item or to cut all dues and registrations for all other departments as well. Council finally agreed to budget $500 for this Item, which is a $350 reduction from the original amount. NEWSLETTER 4114 - Because the School District has reduced Its contribution toward the newsletter, it was felt that the overall budget should be cut in half. That would mean putting out a newsletter every four months. Council agreed to a $4,100 reduction In the total budget for the newsletter. RECYCLING 46140 530 Capital Improvements - Mr. Blake expJained $5,000 of the amount Is for a recycling drop-off center. If the City receives a grant for it, that $5,000 will not be spent; so It could be removed from the budget at this time. If a drop-off center Is not built, the program would fall back on recycling paper and monthly pickups. Mr. Koolick noted the potential $5,000 grant is not included in the revenues. Council then agreed to reduce the item by $5,000 to $1,360. DATA PROCESSING 41920 200 Office Supplies - Mr. Koollck suggested the item be reduced by $4,000 for a budgeted amount of $3,500 for annual support payments. Council then discussed the options presented by Mr. Koollck to purchase data processing hardware and software for the Accounting Department. He stated there Is about $25,000 In the equipment fund that can be used, and the remaInIng amount would come from remaInIng funds on equipment certificates that were never spent. He recommended his option No.3; however, those prices are only good through 1989. This item was discussed again later in the meeting. Special City Council Meeting September 20, 1989 - Minutes Page 3 (Proposed 1990 Budget Discussion, Continued) PARK AND RECREATION 4520 530 Capital Improvements - Chairperson McMullen reviewed the 1990 park capital budget for the various parks. He felt he could reduce the total capital budget to $49,000 If the Council would agree to let him spend the money earmarked in the 1989 budget for park Improvements. He then agreed to eliminate $2,200 for the chain link fence at the City Park Complex and the entire Improvement for Oak Bluff. Counc il agreed to reduce this item by $6,205. STREET LIGHTS 4316 530 Capl tal Improvements - Council agreed to reduce the amount by $5,000, leaving a balance of zero. PROTECTIVE INSPECTION 4240 330 Transportation - Mr. Algrem agreed to reduce the amount by $700, leaving a budgeted amount of $500. ALL DEPARTMENTS - Council discussed other ways to reduce expenses, such as looking at the cost of office supplies and whether the City Is adequately charging for the copies that are made. Staff was asked to bring back a recommendation at the first of the year for covering costs. Several Councllmembers were uncomfortable with only $10,000 In the contingency fund. Councllmember Orttel also argued against transferring any money from the Administrative Trust Fund. He felt that, in essence, Is deficit spending and using "the future" to pay for today's expenses. The fund Is to be spread over the length of the bond Issue. Mr. Koolick stated it Is not a trust fund, so monies can be transferred from it if the Counc il so chooses. There is about $420,000 In that account, accumulated from the assessing and administrative costs on assessments to cover the costs of monitoring assessments. There Is already a $56,000 transfer into the budget for 1990's share of those funds. The question is whether to transfer an additional $69,000 Into 1990 to balance the budget. Councllmember Orttel worried about overspending, noting future costs for the voting machines, the lack of capital Improvement Items, the proJected deficit for 1989, and that the City will have to bor~ow money In 1990 to make the payments until the taxes come In. He felt the spending has to be cut, not money "stolen" from the future, meaning from the Administrative Trust Fund, to balance this budget. Special City Council Meeting September 20, 1989 - Minutes Page 4 (Proposed 1990 Budget Discussion, Continued) After further debate, it was agreed to eliminate the Administrator position, which reduces expenditures In the proposed budget by $60,000. Council also agreed to direct all departments to cut their total budgets by 1 percent. Any additional funds are to be added to the contingency line item, estimating the contingency would then be about $20,000. Council recessed to allow Mr. Koollck time to calculate the revenues and expenditures totals to include all changes made this evening. 9:27 p.m.; reconvened at 9:34 p.m. RECORDING SECRETARY CONTRACT PROPOSAL Council discussed the request by Marcie Peach, Council Recording Secretary, to change her status with the City from employee to contract service. Mr. Koollck stated the proposal would be about $1,000 a year more. He also noted the legality of reclassifying an employee needs to be checked into. Discussion was on the current salary versus the proposed contract rates. The Item was then referred to the Personnel Committee for their recommendation. PROPOSED 1990 BUDGET DISCUSSION. CONTINUED Mr. Koolick reviewed the budget figures with all of the changes this evening. Total budget cuts amounted to $134,005. That amounts to $9,702 revenues over expenditures. Adding that amount to the contingency line would mean a contingency of $19,701. The total budget dollar amount for revenues and expenditures is $2,062,823. MOTION by Knight, Seconded by Jacobson, a Resolution establishing the preliminary 1990 levy and budget to be certified to the County Auditor by the City of Andover; insert the figure In the second WHEREAS of $2,062,823 for preliminary general fund budget; insert the figure of $1,037,392 for non-bonded indebtedness preliminary levy In the last paragraph. (See Resolution R161-89) Motion carried unanimously. Council agreed to have Mr. Koollck send a Jetter to the County Auditor along with the Resolution noting the City does not want to be held to this amount If a special session of the LegIslature changes the rules. SpeclaJ City Council Meeting September 20, 1989 - Minutes Page 5 ACCOUNTING COMPUTER SYSTEM CONTINUED MOTION by Knight, Seconded by Perry, that we select Option 2, and that you (Mr. Ko01lck) be empowered to go out for bids on the option, drawing up specs on Option 2 as presented. DISCUSSION: It was understood the funds are to come out of the equipment fund. Counc il discussed the specifications with Mr. Koolick, suggested he contact IBM for specs. He can also talk with Jim Stern, a computer consu I tant, for questions or recommendations. Counc il also asked that Mr. Koolick bring the item back to them as soon as possible. CouncIlmember Orttel thought the money in the equipment fund may have been for the warranty on the road grader. But It may have only been a 10-year warranty, whIch wou]d have expired by now. Mr. Koolick stated he wi]] research that further. Motion carried unanimously. FIRE DEPARTMENT GAMMA GOATS Chief Palmer and Firefighter Roger Noyes noted it costs about $350 per flrecal1 to run the gammagoats, asking for guidance as to what should be done. Such off-the-road vehicles are needed, but money is being wasted on these. Mr. Noyes reported there are military vehlc1es avalable for $35,000 in Memphis, Tennessee; however, he has not been able to inspect them. No Counc il action was taken, suggesting the Department check into the matter further and come back with a specific recommendation. MOTION by Knight to adjourn. Motion carried unanImously. Meeting adjourned at 10:15 p.m. RespectfullY submitted, \~~CÀ~L Ma Ila A. Peach Recording Secretary