HomeMy WebLinkAbout5.F.2. Approval of Minutes: May 29, 2008
OFFICIAL PROCEEDINGS OF THE CITY COUNCIL
ADJ. REGULAR SESSION SHAKOPEE,M~SOTA MAY 29, 2008
Mayor Schmitt called the meeting to order at 7:00 p.m. with Council members Steve Clay, Pat
Heitzman, Matt Lehman, and Terry Joos present. Also present were Mark McNeill, City
Administrator; Kris Wilson, Assistant City Administrator; Judith S. Cox, City Clerk; R. Michael
Leek, Community Development Director; Bruce Loney, Public Works Director/City Engineer;
Gregg Voxland, Finance Director; Jamie Polley, Director of Parks, Recreation, and Natural
Resources; Dan Hughes, Police Chief; and Rick Coleman, Fire Chief.
Gregg V oxland, Finance Director, presented possible 2009 Budget and Levy Options.
Mr. Voxland provided information regarding the composition of the City's budget expenditures
from the 2008 general fund both by function and by object.
Mr. V oxland explained to Council four options for the 2009 tax levy over the 2008 tax levy:
Option A- Same dollar levy, no increase in revenue.
Option B - Same tax rate, resulting in a 102.700% increase in revenue.
Option C - A 3.9% increase in the levy dollars, resulting in a 103.900% increase in revenue.
Option D - Maximum increase in the levy dollars, resulting in a 106.170% increase in revenue.
Mr. Voxland asked Council which option they wished to use to prepare the budget for 2009.
Cncl. Lehman stated he was in favor of maintaining the tax rate, Option B. Mayor Schmitt stated
he was in favor of Options B or C. Cncl. Joos, Cncl. Heitzman, and Cncl. Clay were in favor of
Option C. After discussion, the Council agreed on Option C, increasing the levy by 3.9%.
Mr. Voxland was then looking for direction from Council regarding $215,000 of the State-Aid
Maintenance money received each year and putting it in the General Fund instead of putting it in
the Capital Projects Fund which has been done for the last 10 years. There was Council
consensus to put the money in the General Fund.
Mr. Voxland also asked for Council's direction on putting $100,000 from the
Telecommunication's franchise fee into the General Budget. Council agreed to put $100,000
dollars in to the General Fund for 2009.
Mr. McNeill discussed the matter of foreclosed homes in Shakopee and utilizing Building
Inspection personnel to look at foreclosed property so they do not get out of line for the
remainder of2008 and 2009.
Mr. McNeill asked for direction from Council regarding the 4% under-spend for 2008.
Specifically, if Council is looking at each department to have a 4% under-spend or a 4% under-
spend as a whole for all City departments. Mr. McNeill stated that an example would be the
Police Department. Mr. McNeill stated that the Police Department would have difficulty, as a
department, to have a 4% under-spend because a majority oftheir budget is spent on labor costs.
Mr. McNeill also, said that the Police Department currently has five positions vacant.
Official Proceedings of the May 29, 2008
Shakopee City Council Page -2-
Mr. McNeill said that the Police Master Planning Task Force has been meeting for several
months and is close to giving their final recommendations to Council. Mr. McNeill said he is
looking for direction from Council if Chief Hughes should fill any of the vacant positions prior
to the presentation of the Police Master Planning Task Force.
After discussion, there was Council consensus to wait on approving the filling of any vacancies
in the Police Department until after hearing the recommendations from the Police Master
Planning Task Force.
Mayor Schmitt stated that Council previously agreed to a 4% under spend for the full budget, not
by department.
Kris Wilson, Assistant City Administrator, presented Council and Staff with the Springsted
Assistance with Service Prioritization.
Ms. Wilson outlined the service Springsted would provide to Council and Administration staff
regarding priority ranking of 70 different service levels. Ms. Wilson said this service would
benefit the City in decisions that need to be made for the 2009 budget.
Ms. Wilson said the cost for Springsted's professional facilitator services would be
approximately $7,500 plus expenses. Ms. Wilson said that if Council agreed to this service, she
would come back to Council on June 3, 2008 with dates scheduled for the workshop with
Springsted.
Council directed Ms. Wilson to work out the details with Springsted and present dates for the
workshop at the June 3, 2008 Council meeting.
Ms. Wilson presented Council and staffwith a Voluntary Separation Incentive for certain
employees.
Ms. Wilson stated that Council directed Staff to explore the possibility of offering a voluntary
separation incentive to eligible employees in the likelihood that some of the staff reductions that
are expected to be necessary in order to balance the 2009 budget can be made through voluntary
action rather than lay-offs.
Ms. Wilson outlined the incentive package which includes an application process, cash payout
and funding for continued insurance coverage. The eligible employee would also have to enter
into a separation agreement.
Council discussed the incentive package at length. Cncl. Lehman would like the insurance
funding reduced and the September 30th end date of employment moved up. Mayor Schmitt said
he was uncomfortable with the package because the 2009 budget has not been discussed or
settled. Cncl's Joos, Clay and Heitzman expressed approval of the package.
Official Proceedings of the May 29,2008
Shakopee City Council Page -3-
Joos/Clay moved to approve the City Administrator offering to qualifying employees the
opportunity to apply for the Voluntary Separation Incentive as outlined in the May 27, 2008
memo from Kris Wilson Assistant City Administrator. (CC Document No. 456). Authorization
to actually pay the incentive to individual employees will be brought back to the Council at a
later date. Motion carried 3-2 with Cncl. Lehman and Mayor Schmitt opposed.
Lehman/Joos moved to adjourn. Motion carried 5-0.
The meeting was adjourned at 9:07 p.m.
~J.~
~th s. Cox .
City Clerk
Kim Weclanan
Recording Secretary