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082696 CC WS Min . CITY OF SHOREWOOD WORK SESSION AUGUST 26, 1996 COUNCIL CHAMBERS 5755 COUNTRY CLUB DRIVE FOLLOWING REGULAR MEETING MINUTES 1. CONVENE WORK SESSION MEETING Mayor Bean called the meeting to order at 9:44 p.m. A. Roll Call Present: Mayor Bean; Councilmembers Stover, McCarty, Benson and Shaw; Administrator Hurm, Finance Director AI Rolek, Planning Director Brad Nielsen and City Engineer Larry Brown. Review Agenda B. There were no changes to the agenda as noticed. 2. DISCUSSION REGARDING 1997 GOALS AND PROPOSED OPERATING BUDGET City Administrator Hurm presented the first draft of the 1997 Proposed Budget. He noted the primary purpose would be to arrive at a preliminary levy rate for 1997 which must be certified to Hennepin County by September 15th. . Councilmember Stover commented the City is approaching a time when there will not be a significant amount of real growth. She expressed concern that the long term possibilities be reviewed and that the rate be increased very gradually. Councilmember Stover stressed the Council needs to be realistic when determining this rate so as not to be required to increase at a very high rate in some future year. Mayor Bean was in agreement and stated he felt this end would come in approximately five years. In addition, he stated he would not be in favor of the rate being reduced this year and felt a reasonable cushion should be maintained in the general fund. Finance Director Rolek stated he is comfortable with the balance in the general fund, noting there is a point the City will not want to drop below. Administrator Hurm noted excess general funds could be contributed to street funds. Rolek noted it is expected approximately $60,000 of the general fund will be carried over into 1997. He noted the surpluses arise for the most part from building permits which will cease over the next several years. Mayor Bean stated he would like to see excess funds put into audio visual equipment at the Southshore Senior Center to accommodate larger City Council meetings as well as public hearings. Rolek explained some dollars are available from a bond which was paid in advance resulting in a savings of approximately $212,000. He noted another debt service fund could possibly benefit from this, however, a substantial amount would remain available. He noted there will be a shortage in the Senior Community Center and some of the funds could be contributed to that project. There is also the possibility of a storm water management plan which could utilize those funds. . . . . CITY COUNCIL WORK SESSION AUGUST 26, 1996 - PAGE 2 Tentative discussions were held with respect to the budget, subject to a [mal review. Three changes related to staffing positions with respect to the office, a potential light equipment operator, and engineering which were created as the result of internal promotions. Brown explained he has begun tracking his overtime, noting the external overtime has been charged appropriately. Brown commented that approximately two-thirds of his time is spent project related which will be charged out to those projects. Hurm explained the formula for charging Brown's time on various projects. Mayor Bean pointed out the significant issue is that the City is spending less on consultant fees by a substantial margin and the City has somewhat of a revenue source for the next couple of years. Brown reviewed OSM's charges for construction inspection and noted his belief there are a number of benefits to bringing the inspection in-house. In addition, he explained the benefits which are less tangible. Mayor Bean inquired if furniture and equipment had been factored into the budget for the additional position. Brown stated an office is available at the Public Works Department and noted mileage had not been accounted for. Hurm noted details would need to be worked out with respect to overtime and other issues. City Engineer Brown asked for Council input and Councilmember Stover stated she had expected this and noted it was a part of the program when the decision was made to use an in-house engineer. She expressed her belief OSM's service has changed. Mayor Bean noted his agreement and stated he did not have a problem with this issue to the extent that external dollars to OSM can be saved and the City will have more control with respect to emergencies and other issues. Councilmember Benson acknowledged there is a need to add a position now, however, he expressed concern that in a two or three year period when the projects have tapered off, the position may need to be eliminated. Hurm noted the Capital Improvement Program will continue to provide work, however, if there comes a point where this position is not cost effective, the person may need to be laid off. Councilmember Benson stated he would support the position in that Shorewood has something to gain by way of the database or history that Shorewood would acquire in-house rather than OSM having this information. He noted a great deal of history and knowledge was retained by past consulting engineers which has never been included in the City's files. Brown explained one of his key assignments is to establish a record keeping system. In addition, discussions have been held with OSM regarding the transfer of the documents to the City of Shorewood. Councilmember Stover noted she had been led to believe it would be difficult to obtain this information without hiring an OSM engineer. With respect to the third personnel change, Hurm explained this would be to go back to full time staff in the office. One full time position had been made into two part-time positions. He stated there has not been consistency with the part-time positions and feels it is important to go back to full time to provide a support person for the various departments. Mayor Bean asked for Council input with respect to the levy. Councilmember McCarty felt the tax rate should remain the same. She noted her agreement with Councilmember Stover that the City should begin to look at raising the rate gradually. Rolek stated with respect to the levy, if it were to be approved prior to the public hearing, it could be adjusted downward. At this point, the Council would be selecting the top level. . CITY COUNCIL WORK SESSION AUGUST 26, 1996 - PAGE 3 . Hurm noted the City would expect an upward trend in the liquor revenues. In addition, he noted the transfer to the Park Fund is decreasing, however, more dollars will go into the Capital Improvement Fund for streets. Councilmember Stover felt strongly the Citizen Service Evaluation should not be included in the budget. This evaluation represents opinion from people who mayor may not know why they have that opinion. She commented she is not opposed when it is used as a tool for management decisions, however it does not belong in the budget. Councilmember Stover pointed out that service indicators are facts and relevant, however, the evaluation belongs elsewhere. Councilmember Benson asked if it is normally included in budgets. Hurm stated its purpose is to provide information and it is a management tool. He feels the opinion is important information to have because it reflects the trend of how people are thinking with respect to services which are provided by the City. Mayor Bean did not feel this was a big issue, however, he noted his agreement with Councilmember Stover's comments and felt a Customer Service Management Report could be a separate item. Planning Director Nielsen noted his department generally deals with telling residents they cannot do something which results in angry residents and negative feedback regarding his department. Councilmember Stover also pointed out certain departments will always receive positive feedback and that this information should be contained in a document separate from the budget. Mayor Bean suggested the information be put into a separate document. Councilmember Benson noted his agreement. Mayor Bean noted the department objectives, mission statement and service quality items should be extracted from the budget and compiled in a separate document. . Councilmember McCarty noted she liked the information as a tool, but did not feel it was necessary when reviewing the budget information. Rolek pointed out with respect to service indicators and the local performance aid which has been mandated by the legislature, he feels the City is in a good position to be in compliance, however, he will work to better define the service indicators. 3. ADJOURNMENT Shaw moved, Benson seconded to adjourn the Work Session at 10:58 p.m. Motion passed 5/0. RESPECTFULL Y SUBMITTED, Cheryl Wallat, Recording Secretary TimeSaver Off Site Secretarial ATTEST: RO&h~ . JAMES