2013-08-12 CC Minutes Workshop^
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CITY COUNCIL WORKSHOP
CITY HALL - COUNCIL CHAMBERS
Monday, August 12, 2013
ADOPTED MINUTES
1. CALL TO ORDER
The meeting began at 7:30 p.m.
Present: Mayor Jillian Hendrickson and Council members Rob Olson, Larry Sorensen, John
Vetsch and Dan Wagner
Absent: None
Others Present: City Administrator/Engineer -PWD Adam Nafstad, Finance Director Tina
Lannes, Fire Chief Tate Mills, City Clerk Kimberly Olson, Andrew Berg, and Kevin Knopik
2. ABDO PRESENTATION
Andy Berg and Kevin Knopik of ABDO, EICK & MEYERS LLP presented the City's long
range plan. They reviewed the assumptions made in the long range plan. Nafstad pointed
out the assumptions were very conservative. Berg outlined the anticipated tax capacity rates,
anticipated tax levies, outstanding bonds, and General Fund levy increases needed for the
coming years. Berg stated the estimates for the levy increases are based on a 40% cash flow.
Hendrickson asked what would happen if the levies were decreased and the cash dropped
below 40 %. Berg replied it would definitely affect the way the City is evaluated and
potentially affect the City's credit rating, which is very good right now. Berg showed the
capital outlay until 2018, the cash balance for project funds, and the enterprise funds.
Vetsch inquired about an EDA (Economic Development Authority) tax on each property. He
felt it could be a very small tax but would fund economic development in the City. Berg
replied an EDA tax restricts the use to just those for economic development uses whereas a
small increase in the general levy is more beneficial because it can be used for most
activities. Vetsch would like a way to help current businesses or attract/assist new
businesses. Lannes stated an EDA tax was subject to the levy limits.
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City of Albertville
City Council Workshop Minutes
Meeting of August 12, 2013
3. BUDGET PRESENTATION
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Lannes presented the 2014 preliminary budget that staff had prepared. She stated the LGA
(Local Government Aid) has been confirmed. Staff recommends using this to pay back the
SAC fund rather than using it in the general levy for operations. She stated it is necessary to
pay back the SAC fund to fund future projects and stated this LGA is like a gift.
Lannes reported there will be an increase in insurance rates because of the healthcare reform;
some cities are anticipating a 30 -40% increase in premiums, but Albertville is in a
cooperative group which anticipates no more than a 10% increase. There is a 2% cost of
living increase included in the budget for the employees and for the Fire Department to put
towards their relief fund. Sorensen asked if Lannes would review other insurance groups or
plans if the increase is too high. Lannes reported that she is diligent in looking for the best
price and goes out for bids every three years. Lannes stated there was an additional $9,000
budgeted in order to split the City's voting precincts to achieve recommended voter ratios per
precinct. There was a decrease in dollars allocated to engineering assistance.
Olson inquired why more funds were added to legal fees. Lannes reported history has shown
the City has gone over on legal fees the past several years, so they increased the legal fees to
be more accurate. Vetsch would like to see the fees for legal and planning services reduced.
Sorensen inquired when Nafstad would look at adding other full -time staff, such as a
building official. Nafstad replied the costs have not nearly reached what would be needed for
a full time individual yet.
Lannes reported there is a 3% increase for police protection services from the Wright County
Sheriff's Office. There were some increases to temporary parks employees and supplies, the
senior center, library, and FYCC. She stated that funds had been added for the Initiative
Foundation, a group that helps local businesses with grants, etc. Hendrickson would like this
link put on the website. Lannes stated $10,000 was added to the EDA for lobbying efforts.
Nafstad stated the main Public Works projects would be the 57th Street NE improvements
and 54th and Barthel Industrial Drive NE stormwater improvement.
Nafstad explained the recommended fixes for the STMA Ice Arena roof involving
dehumidification and replacement of the roof's insulation. Staff suggested funding
Albertville's portion for the entire fix with an Interf ind Loan to be repaid in a number of
years. Vetsch would like to see that paid in no more than eight years maximum and stated he
is not in favor of any funding where the City would be paying any type of interest.
4. BUDGET DISCUSSION/ COUNCIL BUDGET REQUESTS
Hendrickson felt the funds for lobbying were important.
100*1S Nafstad stated there were no funds allocated to video recording of the Council meetings;
however, Couri is still in contact with Charter Communications regarding the language in
MAPublic Data \City Council \Council Minutes\2013 Minutes\M 08 12 2013 CC Workshop Minutes.doc
City of Albertville
City Council Workshop Minutes
Meeting of August 12, 2013
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their franchise agreement. Sorensen would like to see a low cost option utilized, such as You
Tube.
Fire Chief Mills stated there are concerns about long term capital such as fire truck and
equipment replacement, but they can work with Otsego to put together a strategic plan. He
stated he does have some concerns with the Fire Hall maintenance needs.
Hendrickson stated she could see setting the preliminary budget and levy at the levy limit set
out by the State and then trimming it before the final budget approval in December.
Sorensen had concerns that if they lock into a number now, it will stay the same for
December, as past history has shown. Lannes stated that these numbers reflect the
improvements to the ice arena and Council can stipulate that once a decision is made on the
ice arena roof, they can review the budget again. Vetsch does not want to come in at the levy
limit. Olson had concerns that if they did not receive LGA next year and also had a levy
limit, how the SAC fund would be repaid.
Council decided to continue discussion at the next budget workshop meeting to be held on
August 19 after the regular City Council meeting. Hendrickson asked the Council to let staff
know of any concerns they have prior to the meeting so staff can come prepared to the
meeting.
5. ADJOURNMENT
Motioned by Sorensen, seconded by Hendrickson, to adjourn the meeting at 9:51 p.m. Ayes:
Hendrickson, Olson, Sorensen, Vetsch and Wagner. Nays: None. Absent: None. MOTION
DECLARED CARRIED.
Respectfully submitted,
Kimberly A 1 on, City Clerk
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