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2015-09-01 Council Workshop Minutes BudgetCITY OF MENDOTA HEIGHTS DAKOTA COUNTY STATE OF MINNESOTA Minutes of the Workshop Meeting Held Tuesday, September 1, 2015 Pursuant to due call and notice thereof, a workshop meeting 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 5:01 p.rn. Councilmembers present included Duggan, Norton and Petschel. Councilmember Povolny arrived at 5:07 PM. Also Present: City Administrator Mark McNeill; Assistant to the City Administrator Tammy Schutta; Finance Director Kristin Schabacker; Police Chief Mike Aschenbrener; Fire Chief John Maczko, City Attorney Tom Lehmann. DISCUSSION Administrator McNeill stated that the purpose of the meeting was to review the proposed FY 2016 Operating Budget. He stated that the Council was being requested to give direction at this meeting to be used to put together a preliminary budget and levy for action to be taken at the regular Council meeting of September 15"' Fire Relief Association Contribution: Administrator McNeill introduced Tom Mattaini, who represented the Mendota Heights Fire Relief Association. Mayor Krebsbach asked why this issue had not been included in the first budget review session; McNeill replied that he had met with the Relief Association to review their needs in May, but they had not specifically been given the instructions on the schedule. As a result, the Relief Association request was not received until after the budget information for the first meeting had gone out. Mattaini distributed information showing where Mendota Heights stood in comparison to other cities. He noted that an increase of $500 per fire fighter per year had been received last year, which brought the annual City contribution to $2500. He said that it was hoped that an increase of $750 could be seen during each of the next five years. Chief Maczko said that there needed to be more of an incentive to stay with the Department, as an increasing number of fire fighters are leaving with less than 10 years of experience. Councilor Duggan said that he was agreeable to a $500 annual increase. Councilor Povolny was supportive of an increase, but wanted to look at the whole budget before making a decision. Mayor Krebsbach stated that she wants to look at the comparison cities, and felt that at some time the City should have a discussion of the future of the fire service. Councilor Petschel felt that a plan to catch the Relief Association up to average should be a goal to be discussed at a future goal -setting session. The Council thanked Mr. Mattaini for his information, and said that they would make a decision after the budget could be reviewed in its entirety. John Maczko PERA Request: Fire Chief John Maczko infatmed the Council that in doing research on his anticipated retirement in early 2016, he found that his membership in PERA's Coordinated Plan would mean that if he continues to work for the City of St. Paul for an additional 5 years, his PERA pension benefit from serving as Mendota Heights Fire Chief since 1986 would be nearly for naught. He was eligible for participation in the PERA Police and Fire Fund. He said that he had not been granted membership in the Police and Fire Fund when he was appointed Fire Chief in 1986, even though both of his predecessors had been in that fund. PERA had told him last fall that in order to gain membership now in the Police and Fire Fund, there would need to be special legislation by the State of Minnesota, as well as a buy -in to PERA of nearly $95,000. He said that he had worked with State Representation Joe Atkins for special legislation earlier this year, and would like to pursue it again with the 2016 Legislature. He said that PERA wouldn't oppose special legislation. The Council discussed the options. Chief Maczko said that in order to address the financial question, he was willing to put in one third of the buy -in amount. The Council indicated its interest in participating by contributing an additional one third. It directed that a letter be sent to Representative Atkins, asking for some help in the resolution of the matter on his part, including the possibility of having PERA contribute the remaining one third. Review of Improvement Packages: Administrator McNeill reviewed the status of the budget as it stood from the initial meeting, and also reviewed each of the 25 Improvement Packages for capital and programming spending options which had been discussed at the first budget meeting. Review of Budget: Administrator McNeill said that based on the decisions from the previous meeting, the increase in the levy stood at a 5.85% increase over 2015. McNeill went on to say that $11,000 was still in the preliminary budget which could be available for an increased contribution to the Fire Relief Association. That money was comprised of $9000, if the Council wanted to reduce the existing $5250 annual cap on tuition reimbursement for employees to $3000. The other $2000 would be if the Council chose not to fund the request of the Roger's Lake Homeowners' Association for an increased amount of herbicides to be put into the lake. The $11,000 would provide for an additional $300 per fire fighter. Council gave preliminary approval to the changes in the limit for tuition reimbursement, and directed that the amount of the Rogers Lake herbicide program would be at the existing $1500. Council then directed that $500 per firefighter per year be included in the preliminary budget. The Council discussed the City's annual contribution to the athletic fields at Henry Sibley High School, for which the City had entered into an agreement in 1991. Attorney Lehmann said that he had reviewed the contract, and reported that there was no easy way to get out of the contract until it expires in 2030. If there are field use issues, he said that the City could pursue those. September I, 2015 Council Budget Workshop Page 2 of 3 The Council discussed the annual $10,000 contribution to MHAA. It was felt that with the levy increase already nearing 6%, and with the many other pressing issues for funding, the City could not make the annual contribution in the 2016 budget year. The Council did note that Mendota Heights will still not charge MHAA for the use of the fields, which is a significant contribution. Councilor Povolny said that he had a lead on a potential donation of firearms for the Police Department, which, if successful, could help solve the PERA issue Finance Director Schabacker said that with the changes made at this meeting, the increase in the levy for 2016 would be 5.95%. That would be the amount which would be presented to the City Council for adoption at the September 15th City Council meeting. The preliminary budget and levy for FY 2016 must be certified to Dakota County by September 30, 2015. ADJOURNMENT There being no further business, Mayor Krebsbach adjourned the meeting at 6:51 PM. an•ra Krebsbach Mayor A TEST: Lorri mith City Clerk September 1, 2015 Council Budget Workshop Page 3 of3