City Council Minutes 10-12-2009 SpecialMINUTES
SPECIAL MEETING — MONTICELLO CITY COUNCIL
Monday, October 12, 2009 — 5:30 p.m.
Present: Clint Herbst, Tom Perrault, Glen Posusta, Brian Stumpf, Susie Wojchouslci
Absent: None
1. Call to Order
The Special Council Meeting was called to order at 5:30 p.m.
2. Workshop — Capital Improvement Plan
Tom Kelly gave an overview of the Capital Improvement Plan (CIP) document. He did note
that the entry for farm land purchase for Waste Water Treatment Plant sludge needs to have
the year changed. Tom Kelly noted that the largest item in the capital budget would be the
proposed street reconstruction for 2010. He would propose that the project be bonded to
spread the cost out for up to 20 years with the interest rates so low. Brian Stumpf asked if
bonds are used to fund this project, would the City also bond for a project three years from
now. Tom Kelly said that would most likely be the case dependent on the interest rates and
project being proposed.
Tom Kelly explained that the remaining items in the CIP are based on input from staff and
contains capital items that are needed for city operations. It is the intent to build a trust with
Council that purchases recommended by staff are based on the best possible price and quality
that match needs. The CIP document can serve as a tool to guide Council and staff on
priorities and direction for capital purchases.
Clint Herbst noted that the CIP document looks very good and wanted to know how it would
be kept up to date. Tom Kelly explained that this would be updated annually so it always
contains at least five years of information.
Susie Wojchouslci asked about grave restoration. Tom Pawelk explained that many of the
stones need to be restored as they are quite old and not in good shape.
Clint Herbst asked how staff felt about the CIP final product. Tom Moores explained that this
was the first year that staff worked with the priority setting method and did not have all of the
information to start with. He noted that some of the ratings may not reflect department head
outcomes exactly but it should be a good tool to work with.
3. 2010 Budget update
Jeff O'Neill led off with a thank you to Tom Kelly for his work on the budget. He noted a
variety of areas looked at in terms of budget reductions and possible service impacts. Council
approved a preliminary levy of $7,750,000 and emphasized their desire to lessen the amount
of reserves recommended to balance the budget. Tom Kelly noted some of the changes he is
proposing, many of them being in areas of equipment purchases, some repair and maintenance
Special Council Minutes — October 12, 2009 Page 1
items, and some affecting salaries and benefits. He noted that he had shifted some equipment
purchases to the Capital Revolving fund which has a healthy reserve, which is not designated
specifically at this time. Some reserves would be used in Shade Tree fund and Monticello
Community Center fund as well as a transfer from the Liquor Store to balance out Library and
Street Reconstruction funds.
Brian Stumpf questioned why the Library program costs were being cut if they were being
added from reserves. Tom Kelly explained that program costs are being lowered and the
balance of their budget would come from reserves. Susie Wojchouski commented that it is
difficult to cut Library program costs when the Library use is growing so much. She noted
that the Great River Regional Library does not have any money to provide funding as they
have just built anew library building in St Cloud. Several other Council members stated that
they feel the City may have to cut back on the programming for now.
Glen Posusta asked about the reduction in gas for the MCC. Tom Kelly noted that is for
natural gas which they feel will be reduced for next year. Glen Posusta asked why the Parks
Department is replacing the trailer that is used to haul the skid loader. Tom Pawelk noted that
it does not meet MNDOT requirements, and they could be subject to a fine if stopped while
using it. Glen Posusta asked about the remodeling budget for Public Works. Bob Paschke
noted that the proposed updates are to meet OSHA standards.
Susie Wojchouski asked about process for determining health insurance rates. Tom Kelly
explained that City had switched from Blue Cross /Blue Shield to Health Partners a year ago
and greatly reduced costs. It was anticipated that costs could increase 10% but it was held to
5% for health insurance which will decrease the budget. Susie Wojchouski recommended
that City look into alternative plans such as an Health Savings Account and also check what
other cities are doing for employee insurance benefits. Susie Wojchouski also asked Kitty
about the corrosion on the natural gas pipes in the acid storage area. Kitty assured her that it
is being monitored.
Susie Wojchouski asked if the City could save money if we eliminated Christmas tree pickup
and leaf pickup. Bob Paschke pointed out that there is only a cost for picking up the leaves
and not for the disposal. Tom Moores explained that city employees pick up the Christmas
trees and there is no cost for disposal. Glen Posusta asked why trees are not chipped instead
of dumped out of town. Tom Moores explained that it is very time consuming to chip all the
Christmas trees and they have worked out a good arrangement which costs less than chipping.
Consensus seems to be to leave the pickups as they are.
Jeff O'Neill summarized discussion and noted that city staff will be looking at mowing policy
to try to save costs in that area. He also noted that some TIF districts may be decertified
which could increase the taxable value for the City. There is a likelihood that assessed values
may increase next year. Although the Transition Aid for the Xcel Plant did not materialize as
originally anticipated, it should not go any lower next year and the City could possibly see an
increase in valuation for the plant. He also noted a number of other possibilities for next year
that could increase revenues. He explained that the City is looking at redevelopment and
building fees to see if changes should be made in those areas. Glen Posusta noted that he had
spoken with Developer Shawn Weinand who suggested that the City be careful about offering
incentives to large developments, such as Fleet Farm. Jeff O'Neill noted that he had talked to
Special Council Minutes — October 12, 2009 Page 2
a neighboring city that is not lowering fees in this area as they do not feel this would be a
good practice.
Jeff O'Neill discussed building activity and balance in building staff. Management is looking
at possibly utilizing the Building Tech to assist with some of the Deputy Clerk duties to
supplement the needs in this area such as filing and records retention. Jeff O'Neill also
commented on the Bertram Chain of Lakes project and future funding that will be needed.
Council will need to take a hard look at that project.
Clint Herbst commented that he does not think that the levy necessarily needs to be lowered
further, but he does not necessarily agree with all of the recommendations in the budget
update. He feels that Council needs to take a close look at the document in deciding what the
final recommendation will be for the budget. Susie Wojchouski asked why the City has such
a high levy compared to other cities. Clint Herbst and Jeff O'Neill explained the impact of
Xcel Energy on a historical basis over the years with Xcel carrying the majority of the tax
burden. When the State changed the valuation formula, this created a negative effect on cities
with power plants creating a higher tax impact on other property classes.
Tom Perrault asked about the amounts of salaries compared to benefits in the City Hall
budget. Tom Kelly explained that both full -time and part -time salaries are eligible for PERA
and this is calculated in those budget.lines.
4. Adjournment
BRIAN STUMPF MOVED TO ADJOURN THE SPECIAL COUNCIL MEETING AT 6:35
P.M. TOM PERRAULT SECONDED THE MOTION. MOTION CARRIED 5 -0.
Recorder: Catherine M Shuman
Approved: October 26, 2009 , Q
Attest:
Special Council Minutes — October 12, 2009 Page 3