2008-08-18 City Council WorkshopCITY OF MENDOTA HEIGHTS
DAKOTA COUNTY
STATE OF MINNESOTA
Minutes of the Budget Workshop
Held Monday, August 18, 2008
Mayor Huber called the meeting to order at 7PM
Council Members Present:
Mayor John Huber
Council Member Sandra Krebsbach
Council Member Jack Vitelli
Council Member Mary Jeane Schneeman
Council Member Ultan Duggan
Staff Present:
City Administrator Jim Danielson
City Clerk Kathy Swanson
Finance Director Kristen Schabacker
Police Chief Mike Aschenbrener
Fire Chief John Maczko
Asst. Fire Chief Jim Kilburg
Public Works Dir John Mazzitello
Public Works Sup Tom Olund
Asst. City Administrator Jake Sedlacek
City Administrator Jim Danielson introduced the proposed 2009 City Budget, which needs to be
approved by September 15. The purpose of the workshop is to have department heads present
their budgets, giving the Council time to question staff, and discuss items. Danielson would like
to have the Council approve the budget at the first regular meeting in September.
Finance Director Schabacker mentioned that the State Legislature has enacted a levy limit at
3.9% for 2009, as well as the next two years. The proposed budget reflects the maximum levy
amount, as the City could choose later on to reduce the levy, but could not choose to raise the
levy at a later point.
Danielson and Schabacker reported that they spoke with Bill Peterson with the Dakota County
Assessor's office, and the City is likely to see a 2% dip in residential property valuation, which
impact our tax capacity. Commercial property valuation is slightly up. Council Member
Krebsbach asked if staff could break down valuations by neighborhood for tracking purposes.
Staff reported that the City is broken down into quadrants, but that is as detailed as the reporting
could be.
Council Member Vitelli explained that he wanted the Council to look at the 3% raise proposed
for staff salaries, and consider the rate of inflation — information on the Consumer Price Index
and two well- recognized inflation projections were provided to the group.
Revenues
Mayor Huber had questions on a couple of line items in the revenue worksheet, to ensure that
projections were accurate, and that contracts would be honored. Staff provided background on
how revenue projections were developed.
Mendota Heights 2008 Budget Worksession Notes: Page 1 of 3
Administration
City Clerk Swanson reviewed the City Council, Administration, Elections and IT budgets. The
only significant changes were IT staff going to full -time status (approved mid -2008) and a new
copy machine for City Hall.
Fire
Chief Maczko presented the Fire Department budget. Council had a number of questions on
equipment purchases. Maczko provided background information on a TV for training purposes,
service flashlights, a thermal imaging camera, a snow - blower, and the Assistant Fire Chief's
vehicle. Assistant Fire Chief Kilburg described a proposal to have the floor in the service bay
redone. The Asst Fire Chief vehicle is an add item — after some discussion, it was decided to
include the vehicle, and to remove the service bay floor.
Add: Assistant Fire Chief Vehicle $33,250 — Equipment Reserve Fund
Remove: Garage Floor $16,000 — was to be paid from Facility Reserve Fund
Staff was asked to review the options for financing the purchase of the fire engine proposed as a
capital expense. While there are a number of options available, staff was directed to include the
engine as a levy item, on a five year note, and to bring the item back for more detailed discussion
at a regular meeting. By including the truck now, we have the greatest degree of flexibility for
financing the purchase. This expense does not count towards the 3.9% levy limit.
Chief Maczko asked that the Council consider an increase to the fire fighter's pension. Council
Member Krebsbach reported that she had met with fire fighters to discuss the status of the
pension contribution. She reported feeling that an increase to the pension was reasonable. The
group discussed stepping up increases, including an amount equivalent to $200 per fire fighter
for 2009.
Add: Increase to Fire Fighter Pensions $7,200 — General Levy
Public Works
Public Works Superintendant Tom Olund reviewed the public works budgets, including
background on the trucks which were due for replacement.
Parks
Assistant to the City Administrator Jake Sedlacek reviewed parks improvement projects, which
have been recommended by the Parks and Recreation Commission, to be funded 50% by the
Special Park Fund, and 50% by other sources. Council had several questions about the proposal
to install "Sport Tiles" at a second tennis court. Staff was directed to do further study on the
need for tennis courts in the community.
Remove: Resurface one tennis court with "Sport Tiles" $50,000 — Special Park Fund
Mendota Heights 2008 Budget Worksession Notes: Page 2 of 3
Police
Chief Aschenbrener explained that the majority of PD budget increase was for salary. He also
noted that our dispatching costs for 2009 will be close to what we paid for dispatch services
when we were with West St. Paul. For that price, we have received several technological
upgrades, including radios, which have performed beyond our expectations.
A discussion on DCC operations and level of service ensued; monthly reports with summaries
are available for review.
Not included in the budget was a request to provide funding for a Community Emergency
Response Team(CERT)/Reserves Program. Chief Aschenbrener provided more detail, and
requested that the Council include $7,500 for the development of this program.
Add: CERT /Reserve Program funding $7,500 — General Fund
Other items
Council asked about salaries /contracts in Code and Engineering. As Public Works Director
Mazzitello is new to the organization, he will be able to review job descriptions and
responsibilities, and provide an overview to Council at a later date.
Council Member Vitelli asked that staff provide a report on all of our various reserves and funds.
Discussion ensued, staff was asked to include all encumbrances for these funds.
Council Member Vitelli asked if the Council would be inclined to include a buffer for salaries, to
potentially include a 4% increase for 2009, in order to more closely match inflation rates.
Council did not add this item.
Mendota Heights 2008 Budget Worksession Notes: Page 3 of 3