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081108 CC WS MinCITY OF SHOREWOOD CITY COUNCIL WORK SESSION MONDAY, AUGUST 11, 2008 MINUTES 1. CONVENE CITY COUNCIL WORK SESSION 5755 COUNTRY CLUB ROAD COUNCIL CHAMBERS 6:00 P.M. Mayor Lizee called the meeting to order at 6:00 P.M. A. Roll Call Present. Mayor Lizee; Councilmembers Bailey (arrived at 6:05 P.M.), Turgeon (arrived 6:01 P.M.), Wellens and Woodruff; Acting Administrator/Director of Public Works Brown; Finance Director Burton; Planning Director Nielsen; and Engineer Landini Absent: None B. Review Agenda Wellens moved, Woodruff seconded, approving the agenda as presented. Motion passed 3/0. Councilmember Turgeon arrived at 6:01 P.M. 2. GENERAL FUND DRAFT 2009 BUDGET Director Burton stated at its August 4, 2008, work session Council reviewed the first draft of the 2009 General Fund Budget. During that meeting several changes were recommended. She reviewed the changes which were incorporated into the second draft of the budget. The changes to the revenues were as follows. - Building permit revenue was reduced to $180,000 (-$20,000). - Tobacco license revenue was reduced to $1,000 (-$500). - A $40,000 transfer into the General Fund from the Liquor Fund was added. - General fund reserves provided from the General Fund Reserve Fund balance were increased to $160,000 (+$9,000). - Special Levy amounts were reduced by $18,050 to reflect the actual debt service for the City Hall project and SLMPD public safety building and Mound Fire. Councilmember Bailey arrived at 6:05 P.M. The changes to the expenditures were as follows. - Administration/Staffing - a merit increase allocation of $30,000 was added. - Computer replacements for four employees per schedule were added for an amount of $10,000; $7,500 in General Government and $2,500 in Finance. - Municipal Building/Capital Outlay -City Hall debt service was reduced to $101,120 (- $9,780) per the debt service schedule. CITE' ®F SHOREVV®®D ~3'®aZI~ SESSI®N 1dIEETIll~~ 1l~IIl~UTES August 11, 2008 Page 2 of 3 - Police -support services was increased to $970,500 (+$2.642), the amount in the original proposed SLMPD Operating Budget. - Police/Capital Outlay -debt service was reduced to $233,000 (-$7,000). - Fire Protection/Support Service -Mound fire service was reduced to $25,193 (-$3,307). - Animal Control -support services was reducedsto $0 (-$25,000) because the cost for these services is included in Police operations. - Streets & Roads -transfers out was increased to $645,000 (+$85,000). - Ice & Snow -supplies & materials reduced to $45,340 (-$5,000) - Parks & Recreation -support services was reduced to $52,200 (-$21,300); Southshore Center funding ($12,500) and Friends funding ($8,800) were reduced to zero with the understanding funds could be added back. Burton noted the overall net impact on the 2009 base tax levy is an increase of $43,925 (1.08 percent). The following comments and clarifications were made. - The second indicator line for number of elections held in an election year will be eliminated. - There was lengthy ensuing discussion with regard to service indicators and what, if any, value they add to the budget; or would some other type of indicator reporting be of more value. Service indicators that are not meaningful should be removed. The 2007 service indicators in the budget document will be updated when the information is provided to the Finance Department. - The pending receivable from Hennepin County for the County Road 19 intersection project will remain on the books. - Professional Services/Support Services -Some of the 2008 year-to-date expenditures include $55,000 for the City Hall renovation (which will be transferred to the project fund), $6000 for the milfoil treatment of Phelps Bay and over $17,500 for the city administrator search process. - The balance in the Street Fund at the end of 2008 is expected to be approximately $ L2 million. The 2007 year-end balance was the same amount. - When the five-year Capital Improvement Program is prepared each year the transfers in are the same amount as the transfers out identified in the General Fund budget. - There is not sufficient money in the Street Fund to fund the road reconstruction that must be done over the next 20 years. Some other funding source has to be identified. It costs approximately $1 million to reconstruct one mile of a 24-foot-wide roadway. - The transfer in amount of $645,000 for roadway maintenance should be sufficient to fund roadway sealcoating and overlays in 2009. The reconstruction of Harding Lane should be put on hold until the 20-year Capital Improvement Program for roadways is prepared. - From a technical standpoint, all of the City roadways should be sealcoated every five years to maintain the quality of the roadways. There are times when it is necessary to patch and sealcoat roadways that should have an overlay or be reconstructed because there aren't sufficient funds to do that. - One-fifth of the City's roadways will be sealcoated in 2009 for an estimated cost of $195,000; the estimate is based on 2008 bid amounts plus five percent inflation factor. - If the City adheres to a schedule of sealcoating one-fifth of its roadways each year, the Staff is comfortable with current overlay schedule of one mile per year. The 2009 estimated cost to overlay one mile of roadway (one-fiftieth of the City's roadways) is $156,000. CITY ®F SEIOREWO®I3 W®RK SESSI®19T MEETING MI1~dIJTES August 11, 2008 Page 3 of 3 - Engineers think a roadway has a twenty year life, assuming it is sealcoated and milled and overlaid at least once. Most of the roadways were constructed from 1970 - 1975 when the sewer system was installed. The City's pavement inventory provides a better indication of the roadways; it depicts how quickly the roads are deteriorating. - The transfer from the General Fund to the Local Street Fund will remain at $645,000. - Snow & Ice/Supplies will remain as budgeted at $45,340. The January -March 2008 expenditure for salt is approximately $27,200 after the estimate cost to restock the salt shed is factored into account. The January -March 2007 expense was approximately $24,800. If the City uses approximately the same amount of salt and sand in 2009 as it did in 2007 and if a 5 percent increase in supplies was factored into the 2008 cost, the 2009 estimated expenses for salt and sand would be $38,500. The 2009 budget amount is slightly more than $44,000; it includes costs for cutting edges for plows, deicing chemicals, etc. - The $40,000 transfer in from the Liquor Fund will be the approximate amount of the interest earned. - The City receives 30 percent of the DUI forfeiture funds for incidences occurring in the City; those funds basically offset the prosecutor fees. The following changes will be made to the next draft of the budget. - Staff will confirnl the Parks & Recreation/Support Services budgeted amount. There is a $500 reduction discrepancy. - Public Works/Supplies & Materials will be increased by $10,000. - Police/Support Services will be adjusted to reflect the 2009 SLMPD Operating Budget approved. If the City approves the SLMPD budget alternative which reflects a 6 percent increase over the 2008 adopted budget,. the 2009 budget for police will be reduced by $31,550. The revised draft budget will be discussed at the August 25, 2008, City Council work session. 3. ADJOURN Wellens moved, Woodruff seconded, Adjourning the City Council Work Session Meeting of August 11, 2008, at 6:58 P.M. Motion passed 5/0. RESPECTFULLY SUBMITTED, Christine Freeman, Recorder ATTEST: r~ ~-~ ~4 ~ Christine Lizee, Mayor Brian~~eCk;-Ci~yAdministrator/Clerk ~~° ~_ F 1' f~