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HomeMy WebLinkAbout2013-07-31 MINUTES COTTAGE GROVE CITY COUNCIL City of Cottage Grove, Minnesota Special Meeting July 31, 2013 CALL TO ORDER The City Council of the City of Cottage Grove, Washington County, Minnesota, held a special meeting on July 31, 2013 at the Cottage Grove City Hall, 12800 Ravine Parkway, Cottage Grove. Mayor Pro Tem Peterson called the meeting to order at 6:06 p.m. ROLL CALL The following were present: Mayor Pro Tem Jen Peterson, Council Member Derrick Lehrke, Council Member Justin Olsen, and Council Member Dave Thiede. The following were absent: Mayor Myron Bailey. Also present were: Ryan Schroeder, City Administrator; Caron Stransky, City Clerk; Robin Roland, Finance Director; Brenda Malinowski, Assistant Finance Director; Jennifer Levitt, City Engineer; and Les Burshten, Public Works Director. Mayor Pro Tem Peterson presided over the meeting. 2014 Budget City Administrator Schroeder noted that the purpose of the special meeting was to begin the process of reviewing the 2014 Budget and tonight the following areas will be covered: Strategic goals, levy limit impacts, tax impacts, General Fund revenues and expenditures, General Government, and Public Works. He noted that a Budget Workshop will be held on August 8 to cover Parks and Recreation, Public Safety, Golf Course, and the EDA budgets with a town hall meeting on August 21 and a special meeting on September 4, 2013 if needed. Strategic Goals City Administrator Schroeder reviewed the primary and secondary goals and the Council briefly discussed the good-to-great process that the departments went through, whether there were things that we should or should not be doing, and what the City’s core functions are. Levy Limit Impact City Administrator Schroeder reviewed the levy limit impacts and noted that the gross levy will potentially increase 6.28% in 2014. Finance Director Roland stated that the City will need to bond for the 2013 Pavement Management Project and that she will need to receive a consensus from the Council to call Cottage Grove City Council 2 July 31, 2013 Regular Meeting for the sale of bonds at the August 14 meeting. The sale would take place at the first meeting in September. If we do not sell these bonds, we will not have cash for the project. City Administrator Schroeder confirmed that for the next meeting, staff will present a report showing the cash balances of our funds. Tax Impacts City Administrator Schroeder commented that the average valued home in 2004 had to pay more in City taxes than an average valued home will in 2014. We are slightly below our peer group tax rate. Cottage Grove’s tax rate for 2014 is proposed to be 45.76. The per capita income growth for Cottage Grove between 2004 and 2012 is up 21.47% in the same period that our levy has been relatively flat. General Fund Revenues and Expenditures Finance Director Roland highlighted the changes in revenue assumptions: 2014 property taxes will increase 3.65%, intergovernmental revenues will increase, administrative charges will decrease, miscellaneous revenues will increase and includes a $100,000 allocation from the South Washington Cable Telecommunications Commission (SWCTC), and the average change from 2011 to 2014 in revenues is 2% annually. The City Council reviewed the General Fund expenditures which include statutory increases to Police PERA, a shift of EMS staffing, fuel costs, sales tax savings, and costs for health and workers’ compensation insurance. Overall for 2014, we have revenues under the proposed budget scenarios that match our expenditures. The budget that we are proposing with the levy increase is balanced. Revenues do equal expenditures and transfers out at this time. General Government Mayor and Council City Administrator Schroeder noted that the Mayor and Council budget includes the cost for the Good-to-Great Program, 3M Air Monitoring Program, the Council Goal-Setting Session, LMC and AMM memberships, and travel and training costs. Administration, Professional Services, City Clerk and Elections, and Personnel City Administrator Schroeder noted that the budget includes legal services (civil and prosecution), assessor services, personnel services, and two elections in 2014. There was discussion on the increase in personal services and the assessor costs. Finance Finance Director Roland stated that in 2012, MIS became an internal service fund with services charged back to departments. The increase in personal services is reflective of cost of living increases and significant insurance increases. Cottage Grove City Council 3 July 31, 2013 Regular Meeting City Hall and Special Services City Administrator Schroeder noted that the budget includes the cost for the monthly newsletter, special events such as the Third Thursday, a Fourth of July Fireworks donation, the Volunteer Banquet, Photo Contest, and the Employee Holiday Event. There are also costs in the budget to operate the Public Safety/City Hall facility such as telephones, postage, insurance, and utilities. Community Development City Engineer Levitt stated that the Community Development budget includes funding for a temporary building inspector, $1,500 for website design to add the ability for customers to renew rental licenses online, and $4,500 for an upgrade to ARCview. City Engineer Levitt stated that the contracts with the surrounding communities for building inspection services will expire in 2014 and Staff will evaluate whether we should continue to provide the service to them. It was suggested that we provide two-year rental licenses to be renewed online with credit cards, and to charge a $100.00 fee for the two-year license. City Engineer Levitt stated that she would evaluate whether or not the fee should be increased later this year. Engineering City Engineer Levitt noted that the 2014 Budget includes $1,500 for website design to give customers the ability to purchase right-of-way permits online. She noted that our current rates are below our peer communities and that our revenue projections are very conservative. There was discussion on the decrease in personal services from 2012 to 2013 and the potential of hiring an engineering intern in 2014. The City Council’s consensus was to consider adding an engineering intern to the budget. Recycling City Engineer Levitt reviewed the recycling budget and noted that Washington County contributes funds to the City to facilitate a recycling program in the City of Cottage Grove. 16 hours per month are allocated to continue to utilize the environmental specialist from Woodbury. She expressed concern that the County’s goal is to require the City to implement organized collection of recycling material every week. They also want us to step up our involvement with multi-family recycling programs. The budget includes expenditures to purchase recycling bins for neighborhood parks in 2013, 2014, and 2015. With the Good-to- Great Program, recycling would be something we could discontinue doing. The Council took a five-minute break. Council Member Lehrke noted that he spoke to Washington County Commissioner Lehrke during the break and she indicated that she was not in favor of organized collection nor was she in favor of cutting funding to communities that already over-perform. For communities that do not recycle at all, the question is why they receive recycling funds. Cottage Grove City Council 4 July 31, 2013 Regular Meeting Storm Water City Engineer Levitt reviewed the Storm Water budget noting that the budget shows a deficit because we have not received $250,000.00 from the South Washington Watershed District for the EDP-5 Pond Project. She noted that the City was proposing to purchase a smaller jetter and we would reduce our contractual services to absorb that capital purchase. The jetter would be used to clean out backyard drainage and holding ponds. There was discussion on the tremendous amount of work that needs to be completed throughout the City, that we need to be compliant with the regulations and deal with maintenance and challenges, changes in the requirements based on a 7.3 inch rain event which will require us to make our holding ponds larger, and a recommendation to increase the storm water rates. Finance Director Roland stated that the GFOA recommends that there be 50% of annual expenditures as a fund balance. She noted that the budget includes funding for three full- time equivalent persons in this fund. Transfers Finance Director Roland presented the Transfers Out budget noting that for 2014 we are budgeting the equipment replacement which comes out of the general fund and goes to the equipment replacement fund to cover the expenses in that fund for 2014. It is the last year of the splash pad transfer and we have allocated money to transfer to the golf course operation. The 2014 proposed transfers do not include any “pay back”. PUBLIC WORKS Street Maintenance Public Works Director Burshten noted that there are a few items budgeted for 2013 that will not be purchased until 2014. These items include a dump truck and a one-ton truck to save money on sales tax. Public Works Director Burshten stated that the Street Maintenance budget includes funding to hire a Public Service Worker on July 1, 2014. The 2015 capital outlay budget includes the purchase of a commercial stand-on mower. Signage Public Works Director Burshten stated that the 2014 Signage budget includes $2,000.00 for training on sign shop software. Snowplowing Public Works Director Burshten reviewed the Snowplowing budget and noted that it includes a portion of the proposed Public Service Worker position beginning July 1, 2014. It also includes funding for a plow unit for a ¾-ton pickup. There was discussion on the personnel costs for the years 2008 through 2011 compared to year-to-date 2012. In the first six months of 2013, the City expended 92% of the snow plow budget. That means we have 8% left to spend for October, November and December. Cottage Grove City Council 5 July 31, 2013 Regular Meeting Public Works Administration Public Works Director Burshten reviewed the Administration budget noting that they are requesting a Special Projects Coordinator position (Budget Addition 74). There was discussion on the savings to bring our Streets Maintenance position to full-time status versus half-time and what we currently pay our intern. Council Member Olsen stated that he would like to place this position on our list of things to talk about. The Council then discussed the Emerald Ash Bore (EAB) Program. Public Works Director Burshten noted that the EAB is a joint effort, split between the Forester and Parks and Recreation budgets. The annual expense for the program is $164,000 and is currently in its fourth year. The trees have been treated once, we are attempting to treat them again, and no beetle has been found in any of the traps. Council Member Olsen stated that if you are looking for a place to save some money so we can afford to provide engineering and public works with the personnel that they need to do their jobs more effectively, this would be the place. Public Works Director Burshten stated that another budget request was for an electric scissor lift which is needed to get into high areas, to change light bulbs, wash windows, etc., inside any of our buildings. He noted that the Ice Arena is also asking for a similar lift and that he would be willing to share a unit. Sealcoating Finance Director Roland stated that over the next three years the amount that we receive in franchise fees from Xcel Energy will be reduced by approximately $62,000 a year in order to pay for underground facilities on East Point Douglas Road. The reduction in franchise fees is reflected in the 2014 and 2015 revenue numbers. The Council then discussed whether the City should continue to provide seal coat contractual services to the cities of St. Paul Park and Newport into the future and the maintenance of sidewalks and trails. Water Operating Fund Public Works Director Burshten stated that the Water Operating Fund includes the replacement of water meters at $225,000 for 2013, 2014, and 2015. In 2014, it includes $20,000 for Pavement Management (f1), $70,000 to pull a well, $605,000 to paint the West Draw Water Tower, and $31,000 for a four-wheel drive pickup truck. The Council briefly discussed whether the City should bid our water towers based on the lowest responsible bidder or through a best value process. Another alternative to look into is to ask for a multi-year warranty. Sewer Operating Fund Finance Director Roland noted that the Sewer Operating Fund anticipates a rate increase in MCES charges and capital outlay expenses for pavement management projects. Cottage Grove City Council 6 July 31, 2013 Regular Meeting There was discussion regarding the televising of our sewer lines. Street Lights Public Works Director Burshten noted that they continually upgrade the system and they would be looking into the possibility of changing out the entire system. There was discussion on the increase in contractual services for 2014 and the amount of contracting that we have been doing in public works and whether the Council should discuss whether or not we can do some of the contractual services in-house cheaper. Equipment Replacement Public Works Director Burshten highlighted the newer or bigger pieces of equipment that we are requesting for 2014. They include: Tandem axle trailer jetter, six-foot rotary mower, four-wheel drive tractor with snowplow and snow blower, two utility vehicles, 11-foot rotary mower, and a self-propelled asphalt paver. Capital Improvements Program (CIP) City Engineer Levitt distributed and reviewed an outline of the Capital Improvement Projects by priority. ADJOURNMENT MOTION BY COUNCIL MEMBER OLSEN, SECONDED BY COUNCIL MEMBER THIEDE, TO ADJOURN THE JULY 31, 2013 SPECIAL MEETING AT 9:58 P.M. MOTION CARRIED. 4-0. Prepared by, Caron M. Stransky City Clerk