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