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City Council Minutes 11-28-2011 WorkshopMINUTES SPECIAL WORKSHOP /MEETING— MONTICELLO CITY COUNCIL Monday, November 28, 2011— 6:00 p.m. Bridge Room, Monticello Community Center Present: Clint Herbst, Lloyd Hilgart, Tom Perrault, Glen Posusta, Brian Stumpf Absent: None Other: Jeff O'Neill, Tom Kelly 1. Call to Order Mayor Herbst called the Budget Workshop meeting to order at 6:11 p.m. 2. Purpose of Workshop: Discussion of CIP Plan and review of proposed 2012 Budget and Levu Tom Kelly presented the final draft of the Capital Improvement Plan (CIP) for 2012 -2016 and proposed levy for 2012 based on the budget worksheets. These items will come before Council on December 12th for approval. 3. Consideration of CIP for 2012 -2016 Tom Kelly had provided the proposed 2012 -2016 CIP in advance and summarized the changes that he had made following the establishment of the preliminary levy. Tom Kelly noted that there is no core street project planned for 2012. He did make some changes to Parks improvements which moved them out further. Brian Stumpf noted that even though there are items listed for 2012, it should not automatically be assumed that those items would be approved by Council. Tom Kelly noted that the Council will be asked to approve the CIP at the December 12th meeting when they will be approving the final levy. Brian Stumpf asked if the levy could be lowered from the preliminary amount; Tom Kelly noted that would be up to Council. Currently the preliminary levy is set at $7,850,000 and could be lowered but not raised. 4. Review of proposed 2012 Budget and Levy Tom Kelly summarized his proposal for the levy and noted some of the General Fund budget items that have been adjusted to accommodate the preliminary levy for the General Fund. Brian Stumpf brought up the position of Fire Chief and commented that he feels this is becoming more needed and should not be taken out of the budget. Steve Joerg explained that he puts in quite a few hours and if he were to function as a fulltime Chief, it would save money in other areas because he would be responsible for those items. Glen Posusta commented that he does not think there is enough demand for a fulltime Chief and would be worried that duties would be added that would infringe on businesses and in other areas in trying to regulate fire code. Steve Joerg explained that Mark Simpson, as Fire Marshall, does the inspections right now as required by state code. Special Council Budget Workshop Minutes — November 28, 2011 Page 1 The City does not create the code but is responsible for malting sure that it is enforced. Clint Herbst suggested that perhaps the Fire Chief position should be switched out more often so that one person doesn't get so burned out. Tom Kelly continued with some of the adjustments in various other funds such as the Community Center and Street Reconstruction. At a proposed levy of $7.85 million, the city's tax rate would change from 46.729% for 2012 to 49.972% for 2012. In Wright County, this leaves the City at the 5t1' lowest rate. Tom Kelly explained that there was a shift in tax valuations due to a legislative change that results in non - residential (commercial) taxes increasing more than those of residential homestead properties. Brian Stumpf commented that he had looked over the CIP and saw several items that could be moved out to future years. Clint Herbst feels that the CIP is a help in looking at the overall plan for improvements in the City and assists in making decisions. Glen Posusta asked if there were plans for any street improvements. Tom Kelly commented on the Fallon Avenue overpass and some overlays on roads that have come into the City from annexation. Clint Herbst asked how the Fallon Avenue overpass would be funded and whether there were any properties to assess to help pay for the project. Tom Kelly noted that the City would need to bond for the project and he was not sure about possible assessments. Jeff O'Neill noted that it might be worth checking with Fleet Farm to see if the Fallon Avenue overpass would have any impact on moving forward with building. Jeff O'Neill explained that the Minnesota Youth Soccer Association (MYSA) has contacted the City and is interested in discussions with the City to develop headquarters at Bertram Park. Jeff O'Neill noted that there are implications in providing services from the City out to Bertram Park. Clint Herbst noted that it will be important to get a strong commitment from MYSA on their intentions if the City is going to have to increase capacity for wastewater treatment. Clint Herbst corn mented on the need to look closely at what Council will approve for levy. He does not think they can go much lower than the preliminary levy in order to keep pace with future needs. He encouraged the other Council members to look at the CIP and take that into consideration. Tom Perrault asked about purchases and whether there would be a possibility of absorbing some costs against the surplus from the DMV fund. Clint Herbst asked about the funding source for lighting at West Bridge Park; Tom Kelly explained that would be funded through Capital Outlay and street lighting and not through the general levy. Torn Pawelk explained that the only lights at Bridge Park right now are the walkway under the bridge. Tom Moores explained the process that Public Works went through this year in their pavement management system and rating the roads in the City. Some of the roads brought in from the township are in really bad shape and will probably have to be considered for some work. Clint Herbst asked if there was a possibility of assessing township properties when adjacent roads are redone. Jeff O'Neill commented that the Special Council Budget Workshop Minutes— November 28, 2011 Page 2 City would have to send hearing notices to township residents but could not assess until they are actually annexed. Tom Kelly mentioned that, in his previous job, they had an agreement with the township where they were willing to assess when the City redid a street. Clint Herbst commented that this is not likely to occur with Monticello Township. Tom Perrault asked about the propoed 2% COLA and half step compared to 1% COLA and full step. Tom Kelly noted that might save approximately $8,000. Tom Perrault noted that he had also talked to Kitty Baltos about possible savings in salaries when the MCC is under construction, but that will probably be nominal. Tom Perrault stated that his goal is to get back to a levy at the same amount as 2011. Clint Herbst responded that he does not feel it would be wise to go back to last year's levy amount. He thinks $200,000 is a reasonable increase considering all of the upcoming items in the CIP. He is hoping there would be some reserves left at the end of the year that could go toward future needs. 5. Adjournment BRIAN STUMPF MOVED TO ADJOURN THE BUDGET WORKSHOP AT 6:52 P.M. TOM PERRAULT SECONDED THE MOTION. MOTION CARRIED 5 -0. Recorder: Catherine M. Shuman NW.,) Approved: December 12, 2011 �) Attest: /.ze.e ✓C�� C y/*inistrator Special Council Budget Workshop Minutes — November 28, 2011 Page 3