Loading...
2016-09-06 Council Workshop minutes - budgetCITY OF MENDOTA HEIGHTS DAKOTA COUNTY STATE OF MINNESOTA Minutes of the Council Workshop Tuesday, September 6, 2016 Pursuant to due call and notice thereof, a workshop of the Mendota Heights City Council was held at City Hall, 1101 Victoria Curve, Mendota Heights, Minnesota. CALL TO ORDER Mayor Krebsbach called the meeting to order at 5:02 p.m. The following members were present: Councilmembers Duggan, Norton, Petschel, and Povolny. 2017 BUDGET DISCUSSION ITEMS Engineering/Public Works - City Administrator Mark McNeill introduced Craig Ebeling, representing General Local Government Consulting, who gave an overview of the existing funding model for the Engineering Department and an option for a revised funding model. He explained that the existing engineering department includes 4.5 FTE's. This uses a funding method that is project -based, in which the costs to run the division are primarily collected from other non -levy sources within the City. The fund is called the Engineering Internal Service Fund. There have been mixed results with respect to the fund paying its own way. An alternative approach to funding the Engineering Department would be to transition to funding the department through the general levy. It was suggested to transition this change out over two or more years. This would provide more transparency as to what costs are being expended to run Engineering. General levy dollars would also be used to partially fund capital projects. With this approach, the city would employ 2.5 FTE positions and use a contractor or consultants to perform some of the division's work tasks, which would primarily consist of capital projects implementation work. Redefining two of the staff positions currently in the division was discussed. One position would be the Director of Public Works; the second position would be Senior Engineering Technician. The half time administrative support position would remain the same. Staff was directed to proceed with the alternative approach using consultants, and redefining the job descriptions within the division, and to review this process in six months with the Council. CITY DEPARTMENT REORGANIZATION Administrator McNeill reviewed with the Council a reorganization model including departments of Public Works, Community Department, Administrative Services, Finance, Police, and Fire. It was also noted that as part of the redesigned Assistant to the City Administrator/HR Coordinator position, staff is proposing to hire a contract employee to handle the City's communication duties for 15 hours per week. This position would handle the website, social media, and the City's weekly newsletters. The Council was supportive of this proposal. EHLERS FINANCIAL PLAN ISSUES Administrator McNeill reviewed with the Council key decisions from the Ehlers Financial Plan. It was noted that the General Fund Balance Reserve percentage is recommended to stay above 75% (the ratio of Fund Balance to annual expenditures). The utility fee/surcharge will no longer be able to be collected once the water assets are officially transferred to St. Paul Regional Water System, which should happen later in September. The Water Tower and Water Revenue Fund Balance could be used to fund other purposes, as long as those are tied to infrastructure. It was proposed that $100,000 of this fund could be used in FY 2017 to provide for sealcoating of the streets. The proposed budget also assumes that the $110,000 generated by the cell tower revenue would help to transition 50% of the $219,000 estimated cost of the new non - project based Engineering Division. Also, it was recommended that the Fire Station immediate needs totaling approximately $160,000 be paid for from this fund. Those include a CO detector, roof repairs, modifications to the heating system, replacement of a washer/extractor for equipment cleaning, and a dual fuel emergency generator. Fund Balances —The Council discussed setting up a Capital Equipment Fund for purchasing vehicular equipment of $315,000, and also setting up a Capital Improvements (Facilities) Fund of $330,000 to be used for improvements to facilities. Ongoing, the general fund levy, or a franchise fee on gas and electrical usage could be used to fund these two accounts. McNeill also described how an equipment replacement fund could be established and funded as equipment is purchased. After the funding of the Fire Station needs, the seal coat rock purchase, and the establishment of the Capital Equipment and Capital Improvements Funds, a balance of approximately $600,000 in the Water Fund would remain. That could be retained for the possible buyback of the water system in the future, should the Council ever choose to do that The Ehlers Plan recommended that the term of the bonds for street reconstruction be reduced from 19 years to 15 years. Staff recommended taking a look at this after the next three street reconstruction projects are complete, so as to keep continuity. It was recommended that the Council meet each year to prioritize street capital improvement programs and expenditures on a more strategic basis. September 6, 2016 Mendota Heights City Council Workshop- Budget Page 2 FOLLOW-UP FROM PREVIOUS WORKSHOP A request was received from Mendakota Country Club for the City to increase their funding from $4,000 to $10,000 for the July 4th fireworks display. The Council agreed to fund $7,000 towards the fireworks for 2017. A request was received from The Village at Mendota Heights to provide a higher level of funding for improvements to be made to the fountain and sidewalks. They are requesting $9,000 for the improvements. That was directed to be put into the preliminary budget, but that a schedule be determined and discussed prior to the final levy being approved. BUDGET DIRECTION With all improvements as proposed, the preliminary budget would be set at approximately an 8% increase from FY2016. Formal action to approve this would be taken at the September 20th regular City Council meeting. ADJOURN Mayor Krebsbach adjourned the workshop at 6:55 p.m. Lorri Smith, City Clerk i .. i4ra Krebsbach Mayor September 6, 2016 Mendota Heights City Council Workshop- Budget Page 3