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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