2015-08-03 City Council Minutes Workshopr'`-.
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CITY COUNCIL WORKSHOP
CITY HALL - COUNCIL CHAMBERS
Monday, August 3, 2015
APPROVED MINUTES
1. CALL TO ORDER
Acting Mayor Vetsch called the meeting to order at 7:50 p.m.
Present: Council members Hudson, Olson, Sorensen, and Vetsch
Absent: Mayor Hendrickson
Others Present: City Administrator -PWD Adam Nafstad, Finance Director Tina Lannes, City
Planner Alan Brixius, Fire Chief Eric Bullen, Water /Wastewater Supervisor John Middendorf,
Public Works Supervisor Tim Guimont, and City Clerk Kimberly Olson
2. 2016 BUDGET DISCUSSION
Lannes reviewed the timeline for the budget process. She stated the preliminary budget
should be adopted at the September 8, 2015 City Council meeting. She indicated the final
budget and levy could go down prior to approval at the December 7, 2015 City Council
meeting, but could not go up. Lannes stated the enterprise funds, or business type funds,
will come before Council at a later date.
Lannes showed a budget history chart and indicated the budget was cut annually for multiple
years after the economic downtown and the levy is still not at the level it was in 2006.
Olson asked for clarification on the increase to parks and public works salaries and Lannes
replied that the addition of the new Public Works employee is split evenly between both
departments.
Lannes reviewed the changes in expenditures and revenue for 2016 and stated staff is
proposing a 3.42% increase. Lannes reported that a portion of the Local Government Aid for
2016 will be set aside for pay back to the SAC fund for Prairie Run improvements.
Council discussed cost of living increases and inflation rates.
Lannes reported there were changes to GASB in accounting for administration fees that
resulted in a decrease to reserve needs. She stated the general fund reserve is at 70 %.
Council members Vetsch and Sorensen had concerns at having a 70% general fund reserve
and would like to see that lowered to 50 %. Lannes stated that a 40% general fund reserve
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runs into cash flow issues before the July tax payment is received and stated that a general
fund reserve of 50% or lower affects the City's bond rating.
Hudson stated that 50% should be the floor for the general fund reserve as the City could be
in trouble if there are unanticipated expenditures before the tax payment is received as the
unknown may happen. Sorensen stated that staff has always been conservative with numbers
they bring forward.
Sorensen had several line item questions that Lannes addressed such as legal notices, STMA
Ice Arena Board management, and City Hall maintenance.
Nafstad stated that staff worked on laddering out the City's debt to achieve smaller
fluctuations to the debt payments.
Nafstad reported that staff has identified several unfunded items the Council may like to
discuss:
• Economic Development
• Arena
• Lobbying
• Park Improvements
• Capital Improvements
• Social Media/Website
• Main Avenue NE Electronic Sign
Brixius discussed options for economic development such as funding for project related costs
before a formal project application is filed that involve staff meetings and TIF eligibility. He
stated the City may want to have financing available to examine street and utility
improvements that may be needed for future developments. Hudson inquired if the City has
looked at putting a cap on the amount of eligible TIF throughout the City or if there have
been concerns about not receiving the immediate taxes. Brixius stated that TIF has a nine
year pay back term and the City has generally looked at TIF on a case by case basis.
Brixius spoke to the difference of community development planning and economic
development.
Sorensen stated he would like the Community Messaging Agreement used more on the
electronic billboard in town.
Nafstad stated funding for a second sheet of ice is not addressed. Sorensen inquired about
the estimated cost Nafstad provided and Nafstad stated that would include bleachers,
concessions, and lockers. Sorensen stated that estimate is quite a bit higher than the one
received several years ago. Vetch inquired about School Board participation in the funding
and Nafstad replied the School District paid for the vacant parcel needed for expansion and
currently they don't have the means to fund a second sheet unless it is a referendum.
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Workshop Meeting of August 3, 2015
Nafstad brought up funding for lobbying. Sorensen felt the Council should have a specific
project in mind before pursuing lobbying.
Nafstad stated there are several options to build a depot or a splash pad at Central Park which
is part of the revised Central Park Master Plan. Vetsch felt the Lions Club may be interested
in funding the depot as part of the caboose project.
Nafstad reported there are capital improvements that also need funding such as street and
utilities, a pavement management plan, cold storage for Public Works, etc.
Nafstad reported the Main Avenue NE sign is at the end of its life and inquired if the Council
felt the need for gateway /entrance sign at the location. Olson stated it is very difficult to
read. Sorensen felt that if the City is getting requests to post information on the sign, they
should keep it. Olson suggested they may want to look at a sign that has two components,
one for city or non - profit information and one for Albertville businesses.
Vetsch would like to see increased funding for transportation. Olson would like to see an
increase go to the ice arena, seal coating, and street overlayment. Sorensen would like to see
economic development funded, an increase to parks, and public works needs such as streets
and cold storage.
Lannes reported that staff will come back with the suggested changes as well as an
interactive budget at the next budget workshop.
3. ADJOURNMENT
Motioned by Olson, seconded by Sorensen, to adjourn the meeting at 9:49 p.m. Ayes: Vetsch,
Hudson, Olson, and Sorensen. Nays: None. Absent. Hendrickson. MOTIONDECLARED
CARRIED.
Respectfully submitted,
Kimberly . Olson, City Clerk
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Workshop Meeting of August 3, 2015