Loading...
HomeMy WebLinkAboutCC August 21, 1995 I CITY of ANDOVER City Council Budget Meeting - August 21, 1995 1. Call to order - 7:00 p.m. 2. 1996 Budget 3. Adjourn . ...-.--. I CITY of ANDOVER . SPECIAL CITY COUNCIL MEETING - AUGUST 21, 1995 MINUTES A Special Meeting of the Andover City Council was called to order by Eayor Jack McKelvey on August 7, 1995, 7:05 p.m., at the Andover City Hall, 1685 Crosstown Boulevard NW, Andover, Minnesota, to review the proposed 1996 General Fund Budget. Councilmembers present: Dehn, Jacobson, Knight (arrived at 9:0S p.m.), Kunza . Councilmembers absent: None Also present: Finance Director, Jean McGann City Administrator, Richard Fursman Various Staff Members Others Revenue Ms. McGann explained the newly projected revenues and expenditures include a 3 percent increase in tax revenues, adding $60,745; however, local government aid is about $S,OOO less than the original projections. . She received the final statement from the State today. The other revenues have remained the same. Councilmember Jacobson felt that with the expansion of the MUSA and because interest rates probably will not raise because 1996 is an election year, the revenue from building permits and related fees should be more than the 1995 projections. He wondered if it would be reasonable to add another $105,000 to the revenue for those items. Dave IÜmgren, Building Official, thought the projection may be low, but $lOS,OOO is high. Mr. Fursman also pointed out the thought is the same ¡,'lInber of building permits will be issued next year with or w¡thout any further MUSA expansion. Counci1member Jacobson thought a $50,000 increase in revenue for building permits and related fees would not be out of line. (A motion to that effect was made later in the meeting.) Bxpenditures fvage Increases - Mr. Fursman explained the proposal before the Council iucludes his recommended cuts from the budget provided at the last budget meeting. The proposed expenditures do include the wage increases b~t adds no new personnel. In reviewing the proposed wage increases, he iòtated step lanes have not been established for any staff position. He . is making that proposal to the union, which has also been included in the proposed budget; but that has not yet been negotiated. The Council had made it a priority to bring the wages up closer to the Stanton average. This is the third year of that process. Wage increases average 8 percent, but that still does not bring the positions up to the Stanton average. In most cases, the salaries in Andover are lower than other cities with similar populations. This item was discussed again later in the meeting. ,. , <.. ._-. .. .. ... Special Andover City Council Meeting ninutes - August 21, 1995 ,. Page 2 Police Protection - Councilmember Jacobson asked about the $10,000 difference between the amount shown in the budget for police protection and the amount of the contract with the Anoka County Sheriff's Department. Ms. McGann noted the additional expenses for supplies, the Crime watch program, the Dare program, telephone, and other services. Councilmember Jacobson thought some of those items should be included in the contract cost; otherwise it is not a true bid. Staff stated they \Jill check on the details of the item further. . Hr. Fursman then reviewed the variances between the 1995 and the originally proposed 1996 budget for all of the Departments and his recommendation to reduce the original proposal in order to balance the budget. He hoped to get the funds for the new computer system from the 1995 budget. If it is not all there, then not all of the computers will be purchased. Planning and Zoning - The recommendation is to remove the position of Planning Assistant but to keep the full-time secretary and capital request of $1,000. . Engineering - Mr. Fursman noted the capital outlay request has been reduced. The Construction Project Administrator is an in-out number, since the revenue will offset the expense. Streets - The cracksealing and seal coating was reduced to the same ¿mount as the 1995 budget. Council discussion was that the City is way behind in its cracksealing and sealcoating program, that seven more mi.les of streets were added this year, on the specifics of the sealcoating program itself, and on the possibility of changing the policy to assess sealcoating. Mr. Fursman pointed out the problem with . assessing for street maintenance is that it will actually be more costly to the residents because the assessment, administrative and bonding costs will be added to the project cost, as opposed to simply raising ~he levy for everyone to cover that expense. He further noted that the City is applying for a grant to participate in the Cops' Program. If those grant monies are received, it will reduce the amount of the police contract, and those funds could then be earmarked for streets. Mayor !1cKelvey noted there is a possibility of three cities purchasing a seal coating machine together, which would reduce the cost substantially. No change was recommended to the reduced budget. Snow Removal - Councilmember Jacobson thought Staff should 10Jk into the prospect of contracting for snow and ice removal, which normally can be done less expensively under contract. Frank Stone, Public Works Superintendent, thought it may be cheaper, but the quality of work is not as good. Park and Recreation - Councilmember Jacobson noted that $15,000 has been deleted for equipment to meet ADA requirements. He asked about the requirements of ADA. Park and Recreation Commissioner Dave O'Toole explained they have been trying to update some of the parks every year. ~ plan is in place to meet the requirements. At the last Park Board meeting, they cut their capital improvement requests to $100,000. Last . Special Andover City Council Meeting r.inutes - August 21, 1995 Page 3 year they were given $30,000 for capital improvements with the promise of $30,000 more from the Contingency Fund if the bond issue failed. They never received that other $30,000. This proposal reduces the capi tal even further for next year to $25,000 total. Councilmember ,Jacobson did note that over $400,000 in TIF funds were spant on the Field of Dreams. Council made no change to the recommendation of $25,000 for capital improvements. Capital Improvements - Mr. Fursman noted the list of Capital Outlay Requests for the 1996 budget and the recommended cuts to balance the budget. Ms. McGann again reported when the Council approved the last equipment certificate for $515,000, it was agreed not to issue any more certificates for three years to avoid raising the levy to the residents to pay for them. Fire Chief Dan Winkel explained Rescue 5 responds to Dore calls than any other vehicle in the Fire Department. It is possible to hold off its replacement for another year, but the hope is . ~o get the equipment on a rotating replacement schedule so that all vehicle replacement is not needed at the same time. Also, Rescue 5 only holds two people, and ideally three or four are needed on medical calls. He thought the 1997 budget would include a request for a new pumper valued at about $250,000. Mr. Fursman suggested consideration may need UJ be given to looking at whether Andover really needs three fire stations. Rather than fully outfitting three facilities with equipment ~~d personnel, it may be prudent to look at operating with only two stations to serve the City of this population. Councilmember Jacobson ''''Jgested that half of the additional $50,000 in revenue discussed iclrlier be used to purchase a vehicle, either for the, Building Department or the Chief's vehicle. ["Ìage Increases, Continued - Mr. Fursman reviewed the step scale for l',¡blic Works employees that he will be proposing to the union. Employees ,..'ould advance step-by-step and would be at the top in about five years. Future increases would be inflationary adjustments. Philosophically ~hey will try to do that for the other City employees as well. It is 'òasier to do it for the Public Works employees because their duties are homogeneous. The goal for the next budget would be to have a step scale in place for all employees, and people with like jobs progressing along ~he same scale. . (Councilmember Knight arrived at this time; 9:05 p.m.) Council discussion with several Staff was on the philosophy of receiving the same pay for the same work after about five years with little or no ,-",~gard for longevity and how that affects specific individuals. Building Official Dave Almgren challenged that application to the positions of Assistant Building Official and Building Inspector, as he i81t the Assistant Building Official, who was advanced to that position :.ast year with added responsibilities and who has been with the City ,mger, should receive a higher compensation. Council suggested the c¡¡sue of wage increases be reviewed by the Personnel Committèe. --"-- ~~ Special Andover City Council Meeting Minutes - August 21, 1995 Page 4 NOTION by Jacobson, Seconded by Dehn, that we direct Staff under Building Permits, heating and plumbing or other appropriate line items, . to increase the revenues approximately $50,000 for the budget. Motion carried unanimously. MOTION by Jacobson, Seconded by Dehn, that because of the above :::-ecommendation, that we incorporate into the budget one vehicle for either the Building Department or the Fire Department for approximately $28,000, and the remainder of the $50,000 go into the Contingency R8serve Account now. Motion carried unanimously. The Personnel Committee agreed to meet at 6 o'clock, Tuesday, August 29, ~o review the proposed wage increases for 1996. The Council directed St.aff to come back with a revised budget based on a three percent tax increase rate. Ms. McGann noted Staff will come back with the line i ':.erns difference between the law enforcement contract and the extra $10,000 in the budget. A resolution adopting the 1996 levy will be placed on the Consent Agenda of the September 5, 1995, Council meeting. 'ëhe specific line items in the budget do not need to be approved until November, prior to the public hearings on the proposed 1996 General Fund budget. N02'ION by Jacobson, Seconded by Dehn, to adjourn. Motion carried , u:1animously. 'Ì\f' meeting was adjourned at 9:25 p.m. Respectfully pubmitted, ~~a~L-- Recording Secretary . . __ ·_~._u_. ""- --_._-- .