City Council Minutes 09-10-2012 Special (Budget)MINUTES
SPECIAL WORKSHOP — MONTICELLO CITY COUNCIL
Monday, September 10, 2012 —5:30 p.m.
Mississippi Room, Monticello Community Center
Present: Clint Herbst, Lloyd Hilgart, Tom Perrault, Glen Posusta,
Absent: Brian Stumpf
Others: Jeff O'Neill, Wayne Oberg, Department Heads
1. Call to Order
Mayor Herbst called the Special Meeting to order at 5:32 p.m.
2. Purpose of Workshop: Final review of proposed 2013 Budget and Preliminary Lew
Jeff O'Neill summarized the purpose of the workshop to do a final review of the
proposed tax levy and look at some items which Council may want to move in or out of
the budget.
3. Workshop — Consideration of 2013 budget and preliminary tax lees
Wayne Oberg handed out a tax levy worksheet to use to arrive at a preliminary levy
amount. Clint Herbst verified the items that are included in the levy at this point and
those items that are not included but could be considered as an addition to the levy.
Glen Posusta asked about the inclusion of performance review adjustments (step
increases) as he thought there would be no further adjustments after COLA was granted
in August. Jeff O'Neill explained that he had included a figure for step increases as he
thought Council wanted to look at those adjustments for the new year. Tom Perrault
commented that he prefers step increases because they are based on performance, but he
realizes a number of employees are already at the top of the scale. Clint Herbst added
that he felt the COLA increase approved in August was the fairest because it applied to
all employees and he did not think that any further increases were to be considered for
2013.
Clint Herbst feels that the funding for another EDA Director should be left in the budget
because it is unknown at this time when that would happen. Bob Paschke asked for the
sealcoating budget remaining from 2012 to be carried over in the budget to 2013. That
way they would not ask to add the $80,000 back into the levy.
Lloyd Hilgart asked about boulevard tree planting and whether that would come out of an
existing fund. Jeff O'Neill pointed out that this would be ongoing funding for planting
boulevard trees. The Shade Tree fund is not necessarily designated for boulevard trees.
Tom Pawelk explained that the city plants about 100 trees a year at a cost between $20
and $40 for bare root trees. It was noted by Bob Paschke that trees will be planted along
Chelsea Road East this fall.
Special City Council Budget Workshop Minutes — September 10, 2012 Page 1
Lloyd Hilgart asked for an explanation of the MCC Debt. Wayne Oberg explained that
the MCC debt has been funded out of bond reserves but that will no longer be available
in 2013. The ice arena payment of $75,000 ends in 2012 so those funds could go toward
the MCC debt. He also explained that the MCC deficit will increase to about $200,000 at
the end of next year so that will also need to be addressed. Together, the amount needed
is approximately $330,000 to cover the debt and deficit in the MCC fund over the next 2
years. For 2012, the MCC fund will be short by about $166,000. Lloyd Hilgart asked
where the funds will come from if the levy is not increased. Wayne Oberg talked about
interfund loans and transfers which have been used as a way to balance deficit funds.
Wayne Oberg explained that the Liquor Fund has been used to balance out other funds;
however if that is used to balance the MCC fund, then there would be a probable shortage
of $800,000 to cover the FiberNet fund. Lloyd Hilgart feels that $100,000 should be
added to the levy to provide coverage for the MCC debt.
Tom Perrault stated that he is not in favor of raising the levy but does not want to cut out
something like the EDA Director. He is also in favor of moving excess DMV funds
toward street improvements. It was noted that the $75,000 from DMV in a prior year has
been allocated for 7`h Street East and Hwy 25 improvements as directed by Council.
Wayne Oberg cautioned that if an amount of $100,000 is designated for debt, care should
be taken to not put that towards operations and then the $100,000 in future years would
not be available to go toward debt.
Jeff O'Neill also noted that some funds designated for capital expenditures have been
used for maintenance activities and are becoming depleted. He suggested that Council
keep that in mind when funding maintenance type activities on such things as pathways.
Angela Schumann spoke in favor of maintaining the budget for the EDA Director in the
general fund. There is not a lot of leeway to utilize funds from the EDA Fund.
4. Adiournment
GLEN POSUSTA MOVED TO ADJOURN THE BUDGET WORKSHOP AT 6:22 P.M.
LLOYD HILGART SECONDED THE MOTION. MOTION CARRIED 4 -0.
Recorder: Catherine M. Shuman
Approved: September 24, 2012
Attest: ��
1t inistrator
Special City Council Budget Workshop Minutes — September 10, 2012 Page 2