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HomeMy WebLinkAbout5.F.2. Approval of Minutes: August 11, 200 OFFICIAL PROCEEDINGS OF THE CITY COUNCIL ADJ. REGULAR SESSION SHAKOPEE, MINNESOTA AUGUST 11,2009 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; Gregg V oxland, Finance Director; R. Michael Leek, Community Development Director; Bruce Loney, Public Works Director/City Engineer; Jamie Polley, Park, Recreation & Natural Resource Director; Rick Coleman, Fire Chief; Dave Judd, District Fire Chief and Jeff Tate, Police Chief. Rick Coleman, Fire Chief, presented Council with the Capital Improvement Program for the Fire Department. Chief Coleman discussed future fire stations, land acquisition and relocations for 2010 thru 2014. The first would be to move current Station 2 (2nd & Scott) to Vierling Dr., east of Adams St. in 2012. The second is the addition of a third fire station in 2014 in the Southbridge area. Land acquisition and future fire stations would be located in the area of Marschall Rd. and CSAH 42 and in the area of Old Brickyard Rd. and l45th St. area. The planned locations were determined using the current Insurance Services Office (ISO) standards that state first fire truck response should be within 1.5 miles of any built upon area and/or a 4 minute response time per National Fire Protection Association standards. Joos/Clay moved to approve the Fire Department Capital Improvement Program Plan, as presented. Motion carried 5-0. Gregg V ox land, Finance Director, presented Council additional information concerning the Capital Improvement Program (CIP). Mr. Voxland provided Council with spreadsheets ofprojected fund levels over the next five years for the Capital Improvement Fund, the Annual Improvement Funds and the State Aid Fund. He also provided a chart of the current and projected debt services levies based on the CIP. He advised Council the information was informational only. Kris Wilson, Assistant City Administrator, presented Council with the Telecommunications Fund and Recreation Fund Fund Balance. Jamie Polley, Park, Recreation and Natural Resource Director was also present. Ms. Wilson said in 2010 the City will be merging the Telecommunications Fund and the Recreation Fund into the General Fund in order to comply with the latest rules issued by the Government Accounting Standards Board (GASB). Ms. Wilson explained that Council needs to decide what to do with the fund balance in each in order to allow the funds to be closed out. Ms. Wilson said the Telecommunication fund has a balance of approximately $843,000. Ms. Wilson said $25,000 will need to be retained in a separate fund reflecting PEG fees collected but not yet spent on eligible expenses. The remaining $818,000 is money that Council can spend or save. Official Proceedings of the August 11, 2009 Shakopee City Council Page -2- Ms. Wilson said that the Recreation Fund currently has a balance of approximately $340,000. $40,000 has been dedicated to small improvement projects at the Aquatic Park and the Community Center. Approximately $300,000 is money that Council can spend or save. Ms. Wilson listed several options that staffhas identified as uses for the funds but stated it would be Council's decision as to what to do with the funds. After a long discussion, Council decided to hold the funds in reserve to offset the budgetary short fall proj ected for 2011. Joos/Heitzman moved to designate $100,000 from the Telecommunication Fund fund balance to the General Fund for Telecommunication technology and to designate $41,600 of the Recreation Fund fund balance to the small improvement projects at the Aquatic Park and the Community Center, and the remaining fund balances ($1,016,400) should be transferred to the Building Fund. Motion carried 5-0. Ms. Polley discussed with Council the CIP Working Summary that shows the inter fund loan payback for Huber Park for 10 years at 5% interest. Ms. Polley said that there would be a balance of$158,748 in the CIP at the end of2009. This includes the projects that have been scheduled for 2009. Ms. Polley is looking for direction from Council to change the inter-fund loan payback from 5 years, 5% interest to 10 years, and 5% interest. Clay/Joos moved to approve the inter-fund loan payback for Huber Park improvements at 5% interest for 10 years. Motion carried 5-0. Ms. Polley asked Council for clarification regarding future projects. It was Council's consensus to cease all future park projects until other revenue sources come in, paying the inter-fund loan first before doing other park projects. Mr. Voxland presented Council with the General Fund Budget 2010/2011. Mr. Voxland provided the detail revenue sheets for Council to review. Recent adjustments include several minor items, decrease of approximately $72,000 of PoI ice Service revenues from initial numbers, decrease in tax revenue due to adjustments upwards of loss of market value homestead credit amounts. Mr. V oxland recapped the fund as a whole and said that in 2010 there will be a deficit of $311 ,61 0 and $966,170 for 2011. Mr. Voxland discussed the Tax Levy 2009 pay 2010. He said Council should consider the following items when determining the pay 2010 tax levy. The EDA levy by the City has been $60,000 for numerous years for economic development activities of the EDA. There is also a levy of $20,000 by the EDA for redevelopment activities. The fund balance of the EDA is around $500,000 with a budget of about $40,000 for 2010. Council and the EDA should consider whether to levy any taxes for pay 2010. Mr. V oxland said that the second consideration for Council is that there is no debt service levy included for 2009 projects. The bond issue for 2009 would be very small and therefore it is planned to combine 2009 and 2010 projects for a bond issue in 2010. The levy for the 2010 bond issue would then be around $240,000 based on proj ections. If Council wants to maintain the same or reduce the total levy for pay 2010 and 2011, this reduces the amount available for the general fund operating levy. Official Proceedings of the August 11, 2009 Shakopee City Council Page -3- Mr. V oxland also said that at the September 1, 2009 meeting, Council should adopt the maximum tax levy and proposed budget. The budget amount can change and the tax levy can be reduced later. Mr. McNeill presented Council with the FY 2010 Budget. He said that the budget is approximately $312,000 out of balance. Mr. McNeill also summarized staff's recommendations to increase revenue and expenditure cuts. All Council members agreed to the following staff recommendations: Eliminate the $60,000 EDA levy for 2010; Additional State Aid Transfer of$122,000; Reduce by $100,000 the increase in park asset fund transfer; Reduce R&D Telecommunication budget by $18,000; Levy to FY 2009 level; and increase transfer to Building Fund by $100,000 for a total of $312,000, thus closing the shortfall. Ms. Wilson presented Council with the Authorization to Enter into an Agreement for Insurance Brokerage Services. Ms. Wilson said that the City currently uses Nesbit Agencies to assist the City in selecting which insurance plans to offer to employees, negotiating annual premium increases, resolving conflicts that arise with the insurance company throughout the year. In return Nesbit Agencies is paid a commission by both Medica and Delta Dental, which is factored into the insurance premiums. In an effort to reduce costs, the City sought out other agencies who provide the same services at a reduced price. Staff recommends going with Financial Concepts because they provide a comprehensive set of services at a listed flat fee. Clay/Heitzman moved to authorize the appropriate officials to enter into a contract with Financial Concepts, Inc., for consulting and brokerage services related to employee insurance benefits, at a cost not to exceed $21,000 for calendar year 2010. Motion carried 5-0. Mr. McNeill presented Council with the Appointment of a City staff member to the Flying Cloud Joint Airport Zoning Board. Mr. McNeill said that the Metropolitan Airports Commission (MAC) contacted the City inviting the Council to appoint two representatives to serve on a zoning board for Flying Cloud Airport. The City has only appointed Joe Helkamp to this committee and is recommending that Julie Klima, Planner II for the City also be appointed. Lehman/Joos moved to appoint Julie Klima to the Flying Cloud Joint Airport Zoning Board. Motion carried 5-0. Joos/Lehman moved to adjourn to Tuesday, August 18, 2009 at 7:00 p.m. Motion carried 5-0. The meeting adjourned at 8:53 p.m. ~~ ~.Or J dith S. Cox, City Clerk Kim Weckman, Recording Secretary