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HomeMy WebLinkAboutSP September 20, 1999 " UIYXtQ+- /ù!6jqq .. CITY of ANDOVER SPECIAL ANDOVER CITY COUNCIL MEETING - SEPTEMBER 20, 1999 MINUTES A Special Meeting of the Andover City Council was called to order by Mayor Jack McKelvey on September 20, 1999, 7:03 p.m., at the Andover City Hall, 1685 Crosstown Boulevard NW, Andover, Minnesota to discussed the proposed 2000 Budgets. Councilmembers present: Don Jacobson, Julie Johnson, Ken Orttel (arrived at 8 p.m.) Councilmember absent: Mike Knight Also present: Finance Director, Jean McGann Public Works Superintendent, Frank Stone Fire Chief, Dan Winkel City Clerk, Vicki Volk Community Development Director, Dave Carlberg City Administrator, Richard Fursman Others PROPOSED 2000 BUDGET Police Liaison/DARE Program Contract: Mr. Fursman explained the City has received two more COPPS grants and will be hiring officers to fill out the rest of this year. That will add to the second and third shifts. Those officers were originally budgeted to begin in January, 1999; so the City has gone two-thirds of the year without them. Staff has also identified other areas on the budget where revenues wilI be exceeded, and the Year 2000 budget before the Council reflects $232,000 of those excess revenues transferred to it. It is anticipated that similar transfers will have to be made over the next three to four years before enough taxes from the residents wilI be generated to pay for the services required. The police contract for next year does not increase the number of officers. The contract for the liaison officer in the schools is funded through the end of 1999. A decision must still be made on funding it for next year or eliminating the program. The school district is not willing to contribute more than it currently does for that officer. Ms. McGann estimated the total cost of the liaison officer is $75,000 with the school district contributing $18,700. Counci1member Jacobson agreed there is a need for the liaison officer but felt the City is paying a disproportionate share ofthe costs. Mayor McKelvey noted the amount comes out of the individual school's budget, not from the school district. Mr. Fursman explained the policy of the school district is to divide the crime prevention levy equally among the schools. Councilmember Jacobson wondered if one of the two officers to be hired can be the liaison officer. Mayor McKelvey didn't think so because of the grant programs. , -, I J Special Andover City Council Meeting Minutes - September 20, 1999 Page 2 (Proposed 2000 General Fund Budget - Police Liaison/DARE Program Contract, Continued) Councilmember Jacobson noted the school district's contribution does not impact their budget at all, but a liaison officer does impact the City's budget quite a bit. For the services of that officer in the schools for nine months a year, he felt the school district should be contributing more. He suggested contacting the schools and the district and asking them to contribute another $7,000 toward the liaison officer, which is about $2,500 per school in the City. Mr. Fursman also noted it may affect the COPPS program if the liaison officer is dropped, because the grant was based on the number of officers in the City and dropping the program would mean one less officer. After some discussion, Staff was directed to talk with the school district about contributing another $7,000 toward the program. Association of Metropolitan Municipalities / North Metro Mayors' Association: Mr. Fursman noted the difference in dues between these two organizations is $12,400 for North Metro Mayors' and $5,700 for AMM. The Council discussed the differences between the two organizations, their members, voting procedures, positions on various issues, lobbying strengths, and the focus as reprcsentatives ofthc cities. It was generally agreed that there was no advantage to belonging to both organizations as well as the League of Minnesota Cities; however, there was no consensus as to which of these two organizations would best represent Andover. It was agrced to table thc item to tomorrow night's regular meeting, September 2 I, to discuss with thc full Council. Capital Equipment Reserve: Ms. McGann explained the Capital Equipment Reserve was originally established with the intent to fund additional capital equipment purchases without having to bond for them. Since 1996 the City did accumulate excessive revenues by the end of each year, and the amounts over the rctained earnings needed to maintain the finances was transferred to this account. For the year 2000, a total of $557,000 has been transferred from that fund to the General Fund to balance the budget. Over thc next three to four years, that transfers will continue to be made in order to fund the General Fund tmtil the taxes catch up with the demand for increased services. The majority of the exccss revenuc comes from building pennits, plan chcck fees and engineering fecs. In November Staff will know where additional funds will be available to either add to the 2000 budget or to make additional purchases of equipment in 1999. There is about $250,000 remaining in the Capital Equipment Reserve. In the 2000 budget, there is a very, very limited amount of capital purchases, noting thc lists of those items included and not included in the budget. If additional revenue is generated, Staff will prioritize the capital outlay purchases included on the list. ChiefWinkeI was concerned that so much of the Fire Department capital outlay was cut from the budget. Many of those items are replacement equipment that is required by OSHA for safety, and -- . -- , --- ----- .-- n Special Andover City Council Meeting Minutes - September 20, 1999 Page 3 (Proposed 2000 General Fund Budget - Capital Equipment Reserve, Continued) it is critical that those items be replaced. They do have a fire truck to sell which could potentially generate $20,000 of that capital. Ms. McGann stated it may be possible to fund those capital purchases out of the remaining money from the equipment bond, or possibly there will be excessive revenue this year which is over and above what is needed for the transfer to the 2000 General Fund. She also noted that last year the Parks Department was allocated $60,000 for capital improvements. The proposed 2000 budget shows $30,000 for that purpose. Proposed wages and benefits: (Councilmember Orttel arrived at this time, 8:00 p.m.) Mr. Fursman reviewed the impact on the 2000 General Fund budget by the wage and benefit increases. To catch up with the median wages of other cities, the average wage was increased slightly above the median plus a three-percent inflation factor. The policy and goal is the same for all employees, but the impact from department to department and between individuals will be slightly different. He also anticipated the policy will be successfully applied to the union contract. Ms. McGann stated on September I the health insurance benefits were renegotiated. The employees had a choice between Health Partners and Medica. By going 100 percent with Medica, they realized a significant decrease in rates. The 2000 budget reflects a $15,900 decrease in premiums. She asked the Council to consider using the savings to institute a long-term disability program. Four quotes were obtained, and the low quote was a premium of $6,600 per year, guaranteed for two years. The rates are significantly less because the City does not have police officers to insure. The long-tenn disability would begin after 90 days and would provide benefits at 60 percent to age 65. It provides 24-hour coverage. The insurance would also train individuals to get back into the work force. With this program, the City can eventually look at instituting a flex program for vacation and eliminate sick leave. After a brief discussion, the Council generally agreed with instituting a long-tenn disability program. !rIot/on by Jacobson, Seconded by Johnson, to so move at the cost quoted. Motion carried unanimously. Inputfrom Department Heads: Elections: Ms. Volk explained the number of precincts will be increased from seven to nine to accommodate the approximately 13,500 registered voters. Newsletter: The increase from $7,000 to $21,000 in two years was questioned. Councilmember Jacobson explained prior to 1999, it was a cheaper newsletter. It is now without subsidy and comes out once a month. They are looking at the possibility of selling ads to lower the cost to the City. The Andover Lions Club is still paying for the postage. - ~-.. -- -~- ~_. --._- -¡ Special Andover City Council Meeting Minutes - September 20, 1999 Page 4 (Proposed 2000 General Fund Budget - Input from Department Heads, Continued) Finance Department: Ms. McGann stated the only capital outlay is for Ms. Clinton's computer, which will have to be replaced this year. Auditing costs have increased but are still significantly less than in 1995. The assessing cost is the estimate from the county. Community Development: Mr. Carlberg stated the only major expenditure is a printer for Mr. Hinzman. Councilmember Jacobson suggested buying all computer equipment at one time to obtain a better price. Ms. McGann stated that generally is done. She also noted there are no new employees planned for next year other than summer help for Public Works. Data processing: Ms. McGann stated the City has been experiencing problems with the voice mail system and is looking at the possibility of up grading the system. The dollar figures in the budget to do so are not absolute. Government Buildings - Public Works: Mr. Stone explained money is budgeted for waterproofing the walls in the Equipment Building. Councilmember Jacobson asked about the charges for City sewer and water. Should the City be charging itself for sewer and water services that it supplies itself? Ms. McGann explained at this point, there is a $10,000 fee for the upkeep of the sewer system which is paid to the Enterprise Fund. The water fee is based on gallons used. The City needs to be paying some type of fee. Engineering: Ms. McGann noted in this Department and others, the personnel items vary because of reallocations of time to more accurately reflect where time is being spent. Fire protection: Chief Winkel again noted it is critical that some dollars be allocated for the capital items needed. Overall, the 2000 budget is $70,000 less than the 1999 budget. He was disappointed that a full-time fire marshal is not being considered for next year. That needs to be evaluated, as it is difficult to keep up with all the development. It also appears there is no wage increase for the officers and firefighters. He will talk to Mr. Fursman and Ms. McGann about that. Protective inspection: Councilmember Jacobson felt the phone usage is very high. Ms. McGann explained the item reflects the purchase of phone equipment, which is a one-time charge. There was then a discussion with the Council on the use of the two-way radios being used by Staff, noting that is less expensive than cell phones. Public Works: Councilmember Jacobson questioned the amount placed in the overlay budget. Is that a reasonable amount that can realistically be used in one year? If there is a need for money elsewhere, this may be one place to cut back. Mr. Stone stated about $300,000 worth of seal coating and crack sealing is what they can do each year. He will discuss the amount for overlays with the engineer and review the amount for next year. Councilmember Orttel did not want to see the City get behind in this area, recalling priority had been given in recent years to getting the street infrastructure up to date. . -. ... - - , --- -~--- ',J Special Andover City Council Meeting Minutes - September 20, 1999 Page 5 (Proposed 2000 General Fund Budget - Input from Department Heads, Continued) Snow and ice: Councilmember Jacobson questioned the increase in salary from 1998 to 2000. Ms. McGann explained the amount reflects an adjustment in the exact amount of time spent in that department. Street signs and lighting: Councilmember Jacobson felt the amount budgeted for street signs is very high. Ms. McGann explained the budget did not change much for this department and reflects what is spent. The amount for street lights is 100 percent recaptured. Weed control: Ms. McGann explained the amount shown reflects the actual time spent within the department. Mr. Stone noted much of it covers the spraying ofthe fields and when residents call. Mr. Fursman also pointed out that as well as the increase in costs because of inflation, there is an increase because of the additional residents moving in each year and their demands for service. Parks and Recreation: Ms. McGann explained the increase in salaries is due to the shifting of time from the Engineering Department because ofthe time they spend on plans. In additional there are a couple seasonal employees that have been added. The Council questioned the inclusion of the Miscellaneous Items .- Fun Fest Contribution, Community Schools Program, and Summer school Program -- in the Park budget. The Park Board has argued that including those amounts in their Department inflates their total cost, which then does not reflect their allocation to parks. Ms. McGann stated the only other options would be to place those three items under U nallocated. The Council agreed to do so. There was some discussion on the City's contribution to the community school. Councilmember Johnson explained the fees collected from the participants pay for the teachers, while the City's contribution pays for the support Staff and running the program. Councilmember Orttel noted some time ago the City made a conscientious decision to fund more than what other cities normally do, thinking it was a worthwhile program. No changes were made to this item. In a discussion on park security, Ms. McGann explained the City needs some specific commitment from the associations or a break down as to how to utilize the $30,000 currently allocated for it. That may need to be discussed at a regular Council meeting. Park and Recreation Commission Chairperson Dave Blackstad explained the Commission has debated having security but has not been allocated funds in the past. Commissioner Grabowski explained the associations expressed a willingness to participate in the costs of security during games, similar to a field manager. It was agreed that this topic will need to be discussed in depth at a later date. Ms. McGann explained Mr. Stone has asked to keep the expenditures for Sunshine Park in a separate account to be able to keep track of those maintenance items. Chairperson Blackstad also hoped the capital for parks will be increased, as they are not keeping up with the equipment or upgrading of the parks. It costs between $ I 5,000 and $25,000 to refurbish a park. - - ,- -. - - ~ -~- --_. ----- -] .' I"... Special Andover City Council Meeting Minutes - September 20. 1999 Page 6 (Proposed 2000 General Fund Budget - Input from Department Heads. Continued) Salaries: Council member Orttel requested a report on the overall financial impact for the salary and benefit adjustments. In discussing the impact of the 2000 budget on the residents, Ms. McGann explained the City's budget will increase the taxes by 4. I percent or less if the tax capacity numbers are higher than anticipated. It is also difficult to tell because of the inflation rate added to the valuation and the reduction in the homestead rates. Councilmember Jacobson noted the net effect may be an increase of 8 to 10 percent. Councilmember Jacobson requested the figures representing the income the Andover Lions contribute to the City because of the pull tabs. Ms. McGann stated she will get that infonnation. ENTERPRISE FUNDS UTILITY RATE DISCUSSION Ms. McGann explained each department within the City pays a portion of the equipment rental for the maintenance of vehicles. With the new software program, they will be able to report exactly what each department is spending. John Wallace, Maintenance, reported the input into the software program is about 60 percent complete. Now they have a way of recovering the tax money from the State. They hope to do a physical inventory and bar code all parts. They can now track each department vehicle. Water and Sewer Enterprise Funds: Ms. McGann stated the most significant change is that Sewer Areas A and B are being combined. A letter will be generated to the residents in Area A around October I to explain the increase in their sewer fees. In addition, the rates for water, which have been in effect since 1997, are proposed to be increased. That will be presented for action at a regular Council meeting. Councilmember Orttel asked about establishing an enterprise fund for storm water. Ms. McGann stated the engineer will address that and is prepared to establish that fund shortly. Motion by Johnson, Seconded by Orttel, to adjourn. Motion carried on a 4- Yes, I -Absent (Knight) vote. The meeting adjourned at 9:40 p.m. Re~~ ~ella A. Peach, Recording Secretary _ _ L_ - - .. -. - -~ ~- -