Loading...
HomeMy WebLinkAbout08/13/2012 TENTATIVE AGENDA CITY OF SHAKOPEE ADJ. REGULAR SESSION SHAKOPEE, MINNESOTA AUGUST 13, 2012 LOCATION: Council Chambers, City Hall, 129 Holmes Street South Shakopee Mission Statement The Mission of the City of Shakopee is to provide the opportunity to live, workand pray in a community with a prowfpast, promising future, and small -town atmosphere within a metropolitan setting. Mayor Brad Tabke presiding 1] Roll Call at 6:30 p.m. 2] Approval of Agenda 3] FY 2013 Budget Discussion A] Departmental Budget Requests 1 ] General Fund a. Police b. Facilities 2] Internal Service a. Information Technology b. Equipment Fund B] Debt Overview C] Property Tax Impacts — Scott County Information 4] Adjourn to Monday, August 20, 2012 at 6:30 p.m. OFFICIAL PROCEEDINGS OF THE SHAKOPEE CITY COUNCIL ADJ. REGULAR SESSION SHAKOPEE, MINNESOTA AUGUST 13, 2012 Mayor Tabke called the meeting to order at 6:30 p.m. Present: Mayor Brad Tabke, Councilmembers Pamela Schurman, Matt Lehman, Steve Clay and Jay Whiting. Absent: No one Staff Present: Mark McNeill, City Administrator; Kris Wilson, Assistant City Administrator; Bruce Loney, Public Works Director /City Engineer; Jeff Tate, Police Chief; Mike Hullander, Public Works Superintendent; and Julie Linnihan, Finance Director /City Clerk 2. Mayor Tabke asked if there were any additions or deletions to the agenda. No changes. Schurman/Whiting moved to approve the agenda. Motion carried 5 -0. 3. Julie Linnihan, Finance Director provided an overview of the topics that were going to be address at the meeting regarding the 2013 budget discussion. 3.A.1.a. Jeff Tate, Police Chief, presented the Police Department budget. The proposed budget includes 1.7% increase for wages and benefits, operating supplies, and increased rental and prosecution costs. Additional proposed increases are salary and benefits for civilian Crime Prevention Specialist that would take the place of the current Multi - Housing/Crime Prevention Officer. That officer would then be re- assigned back to patrol. Chief Tate is also asking for one promotion in the Records unit. If funded, the additional staff would result in a total increase of approximately 2% over the 2012 budget. 3.A.1.b. Kris Wilson, Assistant City Administrator, presented the Facilities Maintenance Budget. Ms. Wilson provided an overview of the current staffing and the nine buildings that fall under this category. There is a very minor change in the budget over the 2012 budget. She asked Council to consider the current contracted custodial services vs. employee custodians. The City continues to employ one full -time custodian, while all other buildings have been converted to a private sector cleaning company. The cost savings if all buildings were contracted out would be $20,000 per year. Another discussion point discussed is the current staffing level and number of buildings to be maintained results in efforts being focused on essential tasks. There is not sufficient staff time to maintain a regular rotation of building enhancements, such as painting walls, polishing floors, etc. The Parks & Recreation Department would like to see a higher level of building maintenance than current staff has time to provide. The Department is Official Proceedings of the August 13, 2012 Shakopee City Council Page 2 therefore seeking a facilities maintenance staff person to be specifically designated for the Park & Recreation Department. 3.A.2.a. Ms. Wilson provided Council the Information Technology (IT) Fund budget. Ms. Wilson said this fund was established in 2010 and each department is charged a flat fee per network account. The 2013 charge is proposed to be $2,000 which is $100 more than in 2012. The funds pay for all standard -issue City IT equipment and baseline software packages. Wages and benefits for IT staff are not part of this fund, but are accounted for in the Administration Department's budget. Ms. Wilson also asked for an increase in money for consultants. This is proposed as an interim step in lieu of requesting more staff. 3.A.2.b. Mike Hullander, Public Works Superintendent, presented the 2013 Equipment Internal Service Fund. Mr. Hullander stated that the Equipment Internal Service (IS) fund was established for the City of Shakopee to prevent large variations in annual funding requests and provide budget planning consistency. In the review of the IS fund for FY 2013, it was decided that the costs to each department are more aligned to the actual usage and the replacement formula has been adjusted to keep the fund in a solid cash position. In a review of the fund and preparing the 2013 budget, several items were updated and departmental rates were changed. Police and Public Works will have incremental increases as needed to cover the full amount of annual charges in comparison to their historical reduced charges. The opposite occurred in Fire, in which the annual charges have been lowered to reflect actual replacement costs. Mr. Hullander also went through the five year equipment list with Council. The 2013 annual department charges also include initial funding for the maintenance and upkeep of the car wash, truck wash, and fueling stations. The departmental charges now reflect the estimated future costs spread over a 5 year period. Staff is also working on an agreement with Shakopee Public Utilities, Scott County and the School District and other users to ensure that all parties that are utilizing the benefits of these services are paying for commodity costs well as repairs and maintenance. 3.B. Ms. Linnihan presented Council with the 2012 Debt Service Overview. She provided a spreadsheet that summarized the 10 individual debt service issues of the City. There are two building referendum debt issues. The first is the Fire station debt (2004B) which was approved by voter referendum. The amount of the levy authorized by the referendum for 2012 was $248,528. The amount authorized by Council to levy in 2012 was $120,000. This has allowed the City to maintain a flat levy but will also result in insufficient funds in which to pay off the future debt, in total requiring a fund transfer from the General Fund. This debt matures in 2017. The Public Works debt service (2004D) is funded through the building facility rental rate charges that are applied to specific City Departments. The annual debt service amount, of approximately $470,000 is a portion of the transactions that flow through the building internal service fund. This debt is carried by the City until 2025. Official Proceedings of the August 13, 2012 Shakopee City Council Page 3 Ms. Linnihan stated that the current practice of debt service levy cancellations is not sustainable for future years debt service payments. 3.C. Ms. Linnihan presented the initial data from the Scott County Property Tax division. The preliminary review of the tax capacity shows that it has decreased 9% from the 2012 levy. The 2013 tax rate will therefore increase due to the decline in market value. Ms. Linnihan provided information for the Council, outlining the residential impacts if the 2013 levy remained at the 2012 level, with optional 2 %, 3% and 5% increase alone as well as a 5% increase and an additional Fire referendum levy increase of $30,000. She also provided Scott County's city preliminary tax rates for area cities. 4. Clay /Whiting moved to adjourn to Monday, August 20, 2012 at 6:30 p.m. Motion carried 5 -0. Meeting ended at 8:37 p.m. /Julie A. Linnihan Finance Director /City Clerk Kim Weckman Recording Secretary