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HomeMy WebLinkAbout5.F.2. Approval of Minutes: August 30, 2011 OFFICIAL PROCEEDINGS OF THE CITY COUNCIL ADJ. REGULAR SESSION SHAKOPEE, MINNESOTA AUGUST 30, 2011 Mayor Schmitt called the meeting to order at 7:00 p.m. with Council members, Pat Heitzman, Steve Clay, Matt Lehman and Pamela Punt present. Also present Mark McNeill, City Administrator; Kris Wilson, Assistant City Administrator; Judith S. Cox, City Clerk; R. Michael Leek, Community Development Director; Bruce Looney, Public Works Director /City Engineer; Julie Linnihan, Finance Director; Jeff Tate, Police Chief; Rick Coleman, Fire Chief; and Jamie Polley, Parks, Recreation and Natural Resources Director. Mayor Schmitt asked if there were any additions or deletions to the agenda. Mark McNeill said staff had no changes to the agenda. Punt/Clay moved to approve the agenda. Motion carried 5 - 0. Julie Linnihan, Finance Director, presented Council with the 2012 Preliminary Budget and Levy Discussions. Ms. Linnihan advised Council that final direction is need to be made regarding the preliminary budget and preliminary levy before September 6 regular council meeting. The first item Ms. Linnihan spoke about was the. Internal Service Funds. The Internal Service Funds of the City provide for a Building Internal Service Fund, as well as a Park Asset Internal Service Fund. Several changes have been made internally to what has been done in the past and what the City will do in the future. Ms. Linnihan provided background of the establishment of the internal service funds which is a revenue source for replacement, maintenance and future construction. Ms. Linnihan discussed with Council the possibility of changing the structure of some of the`internal service funds. She provided Council with a draft policy that would provide a separation of existing funds. The other policy outlines the Park Asset fund internal service fund. Staff is proposing that the Recreation area fund be blended in with the Park Asset Internal Service Fund. Ms. Linnihan asked for a consensus from Council about maintaining the rental rates that are charged to each department in the City at the 2011 rate or decrease them. She explained the impacts of a rate decrease. She provided fund projections with a 20% decrease. Staff placed in the budget the building rental rates at the 2011 level. Ms. Linnihan asked Council if they wished to proceed with the 2011 rates or increase the rates. Discussion followed. Clay moved to retain the rental rates for the Internal Service Fund at the 2011 rates. Motion died for lack of a second. Lehman/Heitzman moved to decrease the Internal Service Fund rental rates by 20 %. Discussion followed. Councilor's Punt, Heitzman and Lehman all agreed that the fund appears to be healthy even after a 20% decrease. Ms. Linnihan explained the risks of decreasing the fund by 20 %. Mayor Schmitt disagreed with the motion and called the question. Mayor Schmitt asked for a vote on the motion. Motion carried 3 -2 with Cncl. Clay and Mayor Schmitt opposed. Official Proceedings of the August 30, 2011 Shakopee City Council Page -2- Ms. Linnihan provided Council with the Capital Improvement Levy for the 2012 budget. Staff is recommending establishing a Capital Levy of $200,000 specific for the Street Improvements. She also explained that if approved there will be an increase each year. She also explained the different sources it could be funded from. Clay/Heitzman moved to add $200,000 to the general levy via an increase in to the general levy (for capital improvements). Discussion followed. Cncl. Lehman asked what other internal sources could be used to fund capital improvements. Ms. Linnihan provided the various internal funding sources for Council. She also stated that this decision would add to the preliminary levy and if Council wished to discuss and receive more information regarding this issue, staff would provide that prior to the levy and budget vote in December. Mayor Schmitt asked for a vote on the motion. Motion carried 5 -0. Ms. Linnihan presented Council with the Debt Service Levy update. Ms. Linnihan said that staff has reviewed the upcoming bond payments for existing debt service issues. It is important to note that the annual debt service payments may require a commitment of funds from the City to meet the needs of 2013 and beyond. This may require a property tax levy increase, dependent upon the status of special assessments that are collected and the level and amount of unpaid property taxes, as well as the fund position of each specific bond issue. Ms. Linnihan said the City will be applying the cancellation of debt service levies to the 2012 preliminary budget process for certain bond issuances, based on the cash positions of the funds. She summarized by saying that for future debt service projects, there will be debt service obligations that will result in a tax increase. Kris Wilson, Assistant City Administrator, presented Council with the Remaining Personnel Issues in the 2012 Budget. Ms. Wilson said the Police Department's 2011 operating budget includes funding for 47 licensed police officers. One of the patrol positions is currently vacant and has been in the budget since 2007. The filling of the position has been held off pending the outcome of labor negotiations and as a general means of providing some flexibility in the budget. Chief Tate is asking for authorization to fill the position at an annual cost of $69,025. Funding for the position is in the 2011 adopted budget as well as the preliminary 2012 budget. Chief Tate stated that starting in the late 1990'.s the desired ratio of officers per a population of 1,000 has been 1.5 officers. This ratio is also based on the workload now. Clay/Heitzman moved to direct staff to fill the 47 licensed police officer position. Motion carried 5 -0. Ms. Wilson asked Council to consider the proposal by the Fire Chief for Duty Crews composed of the City's existing paid -on -call firefighters and model after those used in several other suburban communities. The cost to begin phasing in the duty crew concept is $25,000 for 2012 and is projected to grow to $50,000 annually in future years. A work session to discuss this further would occur sometime in October or November. Clay/Heitzman moved to continue the $25,000 funding to remain in the preliminary 2012 budget to establish Duty Crews within the fire department. Motion carried 5 -0. Official Proceedings of the August 30, 2011 Shakopee City Council Page -3- Ms. Wilson presented Council with the remaining custodian position. Ms. Wilson said the City currently employees one remaining full -time employee in the position of custodian. Some of the City buildings are being cleaned by a private contractor while others are cleaned by the remaining staff member. The annual cost of a full -time custodian is $57,012. Multi - Services would clean the same buildings that this staff person cleans at a cost of $29,982, thereby saving the City $27,000 per year. She said that staff recommends completing the transition to a private contractor, which would result in the laying off one employee. Heitzman/Clay moved to retain the services of the current employee. Motion carried 3 -2 with Cncl. Punt and Mayor Schmitt opposed. Ms. Linnihan stated that following the discussions of the decisions made regarding the preliminary levy and budget, Council is being asked to come to a decision on the preliminary tax levy for 2012. She also noted that once the Council establishes the preliminary levy amount, it can reduce the amount prior to the adoption in December but may not increase it. She outlined different scenarios of a 1 PT rate increase, a flat tax levy, and a flat rate. Staff is recommending a flat levy resulting in a tax rate of 36.542 %. After discussion, Cncl. Punt, and Cncl. Lehman agreed that the tax levy should stay flat for 2012. Cncl. Clay, Cncl. Heitzman and Mayor Schmitt believe the tax rate should increase by 1 PT. to 37.540 %. Clay /Heitzman moved to recommend setting the 2012 preliminary levy at $15,072,000. Motion carried 3 -2 with Cncl. Punt and Cncl. Lehman opposed. Bruce Loney, Public Works Director /City Engineer, presented Council with the Authorization School Speed Zone Traffic Control Signage for 10 Avenue from Adams Street to Clay Street. Mr. Loney said at the last Traffic Safety Review Committee (TSRC) meeting, the TSRC reviewed the speeds along 10 Avenue and the aerial drawing of Sweeney Elementary site. After review the TSRC voted to recommend to the City Council to install a school speed zone from Adams Street to Clay Street on 10 Avenue to a 20 mph school speed and sign it accordingly. The school speed zone is proposed to be when children are present. Lehman/Punt moved to approve a school speed zone on 10 Avenue from Adams Street to Clay Street to 20 m.p.h. when children are present. Motion carried 5 -0. Cncl. Lehman asked to direct staff to ask the TSRC to look into the variations of the school speed zone signs with the Police Chief and the City Attorney. Punt/Clay moved to adjourn. Motion carried 5 -0. The Council meeting ended at 9:15 p.m. L2C-1) }` J�dith S. Cox Kim Weckman ity Clerk Recording Secretary