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2014-08-19 Council Workshop minutesCITY OF MENDOTA HEIGHTS DAKOTA COUNTY STATE OF MINNESOTA Minutes of the Council Workshop Held Tuesday, August 19, 2014 Pursuant to due call and notice thereof, a workshop of the City Council, City of Mendota Heights, Minnesota was held at 5:00 p.m. at City Hall, 1101 Victoria Curve, Mendota Heights, Minnesota. CALL TO ORDER Mayor Krebsbach called the meeting to order at 5:00 p.m. The following members were present: Councilmembers Norton, Petschel, and Povolny. Council member Duggan arrived at 5:08 p.m. Also in attendance: City Administrator Miller, Assistant to the City Administrator Tammy Schutta, City Engineer/Public Works Director Mazzitello, Finance Director Kristen Schabacker, Police Chief Mike Aschenbrener, Fire Chief John Maczko, Assistant Fire Chief Dave Dreelan, IT Manager Sue Donovan, Planner Nolan Wall, and City Cleric Lorri Smith. 2015 DRAFT BUDGET AND TAX LEVY DISCUSSION Administrator Miller presented the draft budget and tax levy with a 4.34% increase from 2014. The overall proposed tax levy was $6,890,489. The council went through each department's budget and asked questions of department directors about specific line items in each of their budgets. A significant increase in the budget is under Improvement Bonds, due to the bonds that were issued to pay for the Hunter/Orchard street improvement project. It was noted that IT related items have been taken out of most departmental budgets and centralized under the Information Technology budget. The exceptions to this are in the police and fire budgets, where IT expenses need to be allocated out for the police and fire contracts with our neighboring cities. The Council discussed the implementation of a gas and electric franchise fee, and the possibility of dedicating the revenue towards existing debt which would lower the levy. The Council reviewed information provided showing how this would affect a customer's bill and the amount of revenue that would be collected by the city annually. The Council discussed the renovation of the ice arena in West St. Paul and giving a contribution towards that project. The project would be a joint effort with the City of West St. Paul and ISD #197 and is estimated to cost between $1.3 and $1.8 million. A commitment letter is needed by October 1St in order to apply for a $200,000 State of Minnesota grant. The Council discussed the $500 per firefighter increase proposed for the city contribution for the fire relief fund to help bring them more in line with the average of the other area departments. This would bring the proposed contribution to $2,500 per year per firefighter. The Council discussed increased staffing in the Police Department and the costs of adding an additional sergeant and patrol position. The Council directed staff to return to the next workshop meeting with cost estimates of the additional two positions in the police department. By general consent, the Council will meet on September 2, 2014 at 5:30 p.m. for a workshop meeting to finalize the budget. Staff indicated that the proposed budget and levy would be presented at the September 16, 2014 city council meeting. Mayor Krebsbach adjourned the meeting at 6:45 p.m. ATTEST: Lorri Smit , City Clerk r4a�ndra� r August 19, 2014 Mendota Heights Council Workshop Page 2