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HomeMy WebLinkAboutSP July 10, 1996 CITY of ANDOVER SPECIAL CITY COUNCIL MEETING - WEDNESDAY, JULY 10, 1996 Call to Order - 7:00 pm 1. 1997 Budget Workshop Adjournment ~ 8/'-"ICj¡P CITY of ANDOVER 1685 CROSSTOWN BOULEVARD N.W. . ANDOVER. MINNESOTA 55304 . (612) 755-5100 SPECIAL CITY COUNCIL MEETING - JULY 10, 1996 MINUTES A Special Meeting of the Andover City Council was called to order by Acting Mayor Don Jacobson on July 10, 1996, 7:20 p.m., at Andover City Hall, 1685 Crosstown Boulevard NW, Andover, Minnesota, for the purpose of discussing the proposed 1997 General Fund Budget. Councilmembers present: Dehn, Knight, McKelvey (arrived at 7:30 p.m.) Councilmember absent: Kunza Also present: City Clerk, vicki Volk Community Development Director, Dave Carlberg City Finance Director, Jean McGann City Building Official, Dave Almgren City Engineer, Scott Erickson Fire Chief, Dan Winkel Public Works Superintendent, Frank Stone Accounting Clerk, Michelle Wenning Parks, Kevin Starr City Administrator, Richard Fursman Mr. Fursman explained the proposed budget before the Council assumes an absolute tax freeze. With the increased new construction, a tax freeze is expected to generate approximately $225,000 in revenues. The ~udget also assumes a 2.9 percent cost of living adjustment for salaries plus proposed additional staff positions of MIS/GIS, Planner, Senior Engineering Technician, Engineering Technician 4, Accountant 1 and a half-time Fire Marshall. With a freeze, the expenses exceed revenues by approximately $1,600,000. Ms. McGann reviewed the new staff positions, proposed salaries without benefits, revenues expected to be generated from fees charged back to the developers by the Engineering and Planning Departments to cover the salaries, and comparisons of the proposed 1997 budget with the 1996 budgeted wages. The net 1997 overall wage increase for all employees is projected at $47,218. (Mayor McKelvey returned at this time and chaired the remainder of the meeting, 7:30 p.m.) Mr. Fursman stated Andover's full-time Staff serves 500 residents per employee. The average is 200 residents per employee, and the next lowest City is Ramsey at 300 residents per employee. No other support staff is being planned for the new positions. Ms. McGann then reviewed the summary of the proposed 1997 budget. In addition, she looked at potential cuts in capital outlay for 1997 from each department, but there would still be a deficit of $822,800 based on the assumption that the additional staff personnel would be hired. Mr. -.---- Special Andover City Council Meeting Minutes - July 10, 1996 Page 2 Fursman explained the decision of the Council is whether to freeze taxes, to freeze the tax rate, or to increase the tax rate by a certain percentage. He also stated that before the next meeting on the budget, he will work with Staff to prepare a prioritized list of capital outlay equipment. Then if there is additional money left at the end of the year, the Council may choose to spend some of it on capital outlay according to the next item on the list that was not able to be purchased out of the budget. After discussing the different options, the consensus of the Council was to maintain the present tax rate of 19.6. Staff then discussed the duties of each of the newly proposed positions and why each is needed. Chief Winkel explained the need for a Fir~ Marshall and the duties that would be performed. He felt a full-time Fire Marshall is needed now but has agreed to a half-time position, expecting there will be a request for a full-time position the following year. He will be exploring ways to make the position self-sufficient, including the possibility of charging a fee for inspections. He is also requesting an increase in the number of fire fighters, from 50 at present to 60 volunteers. That would be spread throughout the year. Right now they are looking primarily for daytime people. Ms. McGann reviewed the duties that would be expected of a MIS/GIS person and the need. Mr. Erickson explained with the addition of a Senior Engineering Technician and an Engineering Technician 4, the City will have an entry-level design team that will be able to do much of the work now being contracted to consultants. They have implemented a bill- back process to developers, which is expected to effectively pay for all of the engineering positions and possibly even generate revenue for the City. Ms. McGann explained with that bill-back process being implemented plus many other activities being taken over by the City, there is a need for another person within the Finance Department. A portion of that Accountant I salary will be paid for by development fees. Council pointed out there is no room for the additional Staff until the new building is completed. Mr. Fursman did not know when all of the positions would be filled, but he wanted the budget to reflect a full year's salary so there is no big jump in those departments the following year. There was some discussion on capital outlay. Councilmember Jacobson felt that some of the money in the PIR fund can be earmarked for computers and vehicles. Ms. McGann stated an fund equity transfer could be made from the excess in the General Fund to the Capital Improvement Fund and make capital purchases with monies from that fund. Councilmember Knight stated his top priority is the streets and preferred to see excess funds earmarked for street maintenance. councilmember Jacobson felt the amount for heating, cooling and maintaining the new and existing structures is underestimated. He also agreed with budgeting $60,000 for park capital improvements for 1997, but asked Staff to look at the legal basis for selling those parks that the City does not want. He asked if it would be more cost effective Special Andover City Council Meeting Minutes - July 10, 1996 Page 3 to have an in-house assessor. Mr. Fursman explained he investigated that last year and found that with support staff, two people plus equipment would be needed. At this point, it is more economical to contract with the county; but that should be looked at again as the City grows. Councilmember Jacobson wondered if it would be more economical to have an in-house attorney. Mr. Fursman again noted that support staff an1 equipment would be needed, plus it is likely that then a prosecuting attorney would have to be contracted. Councilmember Jacobson thought perhaps two or three cities could jointly hire an attorney. Mr. Fursman stated he would investigate that for next year. Councilmember Jacobson thought that the figures in the budget for some of the computers are high. He noted nothing is in the budget for a new Public Works building if the decision is to construct one. Mr. Fursman stated that would be an Economic Development Authority bond, not a general operating expense. That would not affect the General Fund. Ms. McGann pointed to Page 16, City Council budget, which shows no goals. She asked that the Council develop its own goals and objectives. Councilmember Jacobson stated many of the goals and objectives in the budget were very vague. He felt there should be more specific ones with specific deadlines as to when they will be accomplished. Mr. Fursman noted that is the ideal and something to work on. One of the problems is that many of the goals are on-going. Another is that it takes a lot of time and energy to process those goals and objectives. Councilmember Knight thought the externalities statement is the list of goals and objectives for the Council. Councilmember Jacobson suggested the Council should look at how it operates, outline specific improvements and be held accountable to them. Mr. Fursman stated Staff will take the Council's comments, make adjustments to the proposed budget, go over the capital outlay expenditures and prioritize them, and present a balanced budget to the Council sometime in August. The preliminary 1997 budget must be approved at the first Council meeting in September. Ms. McGann stated she would have the proposed 1997 special budgets available for the Council's next meeting. MOTION by Dehn, Seconded by Knight, to adjourn. Motion carried on a 4- Yes, I-Absent (Kunza) vote. The meeting adjourned at 9:20 p.m. R':;'~~L ~"a A. P,ach Recording Secretary - -. ___4__ _