2015-08-15 Council Workshop Minutes BudgetCITY OF MENDOTA HEIGHTS
DAKOTA COUNTY
STATE OF MINNESOTA
Minutes of the Council Workshop
Held Tuesday, August 18, 2015
Pursuant to due call and notice thereof, a workshop of the City Council, City of Mendota Heights,
Minnesota was held at 5:60 p.m. at City Hall, 1101 Victoria Curve, Mendota Heights, Minnesota.
CALL TO ORDER
Mayor Krebsbach called the meeting to order at 5:04 p.m. Councilmembers present included Duggan,
Norton, Petschel, and Povolny. Also in attendance: City Administrator McNeill, Assistant to the City
Administrator/HR Coordinator Tammy Schutta, Public Works Director John Mazzitello, Finance Director
Kristen Schabacker, Police Chief Mike Aschenbrener, Fire Chief John Maczko, IT Manager Sue Donovan,
Planner Nolan Wall, and City Clerk Lorri Smith.
2016 DRAFT BUDGET OVERVIEW
Administrator McNeill presented an overview of the preliminary budget for 2016. It was noted that the
preliminary budget must be certified to Dakota County by September 30, 2015. The final levy must be
adopted by December 28, 2015.
It was noted that the city's general fund balance has been reduced from 98% in 2012 to a current 80%. A
base budget with very few differences from the 2015 budget was presented which showed an increase of
$207,394. The increase is due to wages, workers compensation insurance, lower transfers, and City Hall
rent. The overall base levy increase is 3.72%.
The Council reviewed 25 improvement packages submitted by staff. 13 of the improvement packages were
recommended for funding in 2016. The total cost of those improvements would be $158,027. If all 13
improvement packages were approved, it would add 2.26% to the overall levy increase.
It was noted that each additional $70,000 added to the budget generates a 1% increase.
The proposed overall base levy and the improvement packages as recommended would increase the levy
5.98% for FY 2016, or a total levy increase of $418,721. The effect on taxes for a home valued at
$334,863 (median home value) would be $62.59. Councilmember Petschel stated she would like to see the
tax increase for a home valued at $225,000.
Police — It was noted that the additional police officer to be hired this year has not been included in the
proposed base budget. .
Human Resources — It was noted there will be a reduction in health insurance premiums for 2016. In the
2016 proposed base budget, the city's contribution remained the same as in 2015.
The Council discussed the contribution made for tuition reimbursement and suggested taking a closer look
at the policy.
Parks and Recreation — Councilmember Petschel stated she would like the Council to review the city's
agreement with the school district for maintenance of the baseball field since the city sees very little use of
this field. It was also suggested the city take another look at the city's contribution to Mendota Heights
Athletic Association.
Building Codes — Councilmember Duggan suggested the city review the policy on SAC charges for
teardowns.
Finance — Councilmember Petschel suggested the City review our fees for conduit financing. Mayor
Krebsbach suggested reviewing the parkland dedication fee the city charges. Councilmember Povolny
suggested the Council review new franchise fees for utilities at the next meeting.
Mayor Krebsbach stated she would like a council workshop on fiscal disparities.
The Council reviewed each department's budget line items and asked questions of department directors.
PUBLIC WORKS — The building official's contract for inspections is increasing by 12%, would like to
increase the hours of this position to 30 per week due to the expected increase in 2016 inspections.
John Mazzitello presented a street project schedule showing the difference between a 1% levy towards
street projects and a .6% levy towards street projects and how this affects the timing of the projects.
The Council discussed funding the dump truck instead of the quick connect/release kit. Council directed
staff to review the use of equipment certificates for funding the dump truck in 2016.
ENGINEERING — The budget showed a decrease of 3.7%.
SANITARY SEWER— Revenues are expected to increase by 5%. It was noted the Met Council sewer
charge is expected to increase 5.5%
FIRE — It was noted this budget is proposed to decrease. The improvement package for aerial truck repairs
was recommended for approval. It was recommended that the portable pump is needed by the city of
Sunfish Lake and they should be approached for funding.
PLANNING — The recycling budget was proposed to increase 14.09%. It was suggested the city not accept
construction and demolition debris at the next Clean Up Day event which would decrease costs.
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The estimated Comprehensive Plan costs were discussed. Staff was directed to get more estimates for the
study.
INFORMATION TECHNOLOGY — The staffing level was discussed and the possibility of adding a part-
time position. Mayor Krebsbach suggested a Council workshop to discuss this department in its entirety.
City Hall phone system was discussed and the need to upgrade the system. It was recommended to fund
this in 2015 with the Cable Fund.
The need for a dry sprinkler head in the server room was recommended for funding immediately.
The need for two Toughbook computers and a Fire Department Technology Needs Assessment was
recommended for funding in the amount of $15,000.
The Council recessed the workshop meeting at 6:55 p.rn. to attend the regular City Council meeting at 7:00
p.m.
MEETING RECONVENED
The Council reconvened the workshop meeting at 7:46 p.m. All Councilrnernbers, except Councilrnernber
Duggan, were present. Staff present included City Administrator McNeill, Assistant to the City
Administrator/HR Coordinator Schutta, Public Works Director Mazzitello, Finance Director Schabacker,
Police Chief Aschenbrener, Fire Chief Maczko, and City Clerk Lorri Smith.
The Council completed reviewing the department budgets and the improvement packages submitted by
staff.
POLICE — The need for better cell phone coverage inside of the City Hall building was recommended for
funding.
It was discussed to add a captain position to the police department. Mayor Krebsbach suggested the
Council take a more comprehensive look at the Police Department in its entirety.
Department guns and Tasers were recommended for funding. The personal protective equipment was
recommended to be funded through the Civil Defense budget for 2015. The reserve squad was
recommended to be replaced with the Sergeants vehicle. It will be purchased through the State of MN
Fleet Management, after the lease has ended. It was suggested that donations be sought for the purchase of
the AED for the squad cars.
It was noted there were no changes in the Emergency Management or Animal Control budgets.
CITY COUNCIL — the contingency line item amount was discussed. It will be moved to the Administration
section of the budget.
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ADMINISTRATION — The requested scanning technician position was discussed and the possibility of
using an intern from an area school to save on costs.
The need for smoke detectors in city hall and a color copier were discussed and recommended.
The job evaluation system redesign was recommended for funding in 2017.
The Pilot Knob Management Contract funding will remain the same as in 2015.
ADDITIONAL REVENUE SOURCES
The Council discussed the need for reviewing our revenue sources and the need to find additional sources
of revenue. Mayor Krebsbach stated she would like to see a discussion of this on a future workshop
agenda.
Councilmember Petschel stated she would also like to see the Council discuss who we are as a city, and
where we are going, on a future workshop agenda.
ADJOURN
Staff indicated that the 2016 budget topic will be on the workshop agenda set for Monday, August 24, 2015
starting at 4:30 p.m. and also on Tuesday, September 1, 2015, starting at 5:00 p.m.
Mayor Krebsbach adjourned the meeting at 8:41 p.m.
ATTEST:
Lorri Smith, City Clerk
Sandra Krebsbach, M. or
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