2018-08-20 City Council Workshop MinutesN'bertville,
CITY COUNCIL WORKSHOP
Monday, August 20,2018
APPROVED MINUTES
1. Law Enforcement
Lannes reviewed the current contract coverage for law enforcement services from Wright
County. The proposed increase to the new contract would be 3.47% or $2.50 an hour. Lannes
questioned if Council is comfortable with the increase. Council inquired if there have been
complaints or if staff has, had any issues. Nafstad replied there are occasional questions on why
Albertville contracts for this service rather than its force. Olson inquired if there have been
complaints from surrounding entities regarding coverage being, pulled into Albertville and
Nafstad replied those issues seem to be resolved,
2. Capital Reserve Balance
Lannes reviewed the reserve balances and explained that these funds build up for future
purchases in order to avoid loans or certificates. Lannes described covering depreciation and
that these reserves go hand in hand with the Capital Improvement Plan, Hendrickson inquired
about the water and sewer funds. Lannes explained that the funds have not been covering
depreciation and Vetsch inquired how they would address that. Lannes stated that would be
addressed with rates and that discussion usually would happen when they review the enterprise
funds later in the year to see if changes need to be made.
Nafstad showed an example of a fully funded Public Works Capital Improvement Plan.
3. Continue 20119 Preliminary Budget Discussion
Lannes presented two options for increasing the levy from 1.5% from the preliminary budget as
requested at the last workshop, The options were to increase to 2.5% or 3.0%. Nafstad stated
that an increase could be put towards capital for items such as arena capital, budgeted capital
items, wastewater facility improvements, standalone projects, etc.
Hudson would like to see a decision made on what those funds would be designated for. Lannes
explained that it could remain undesignated or designated; it would be up to Council. Nafstad
felt that it would be a good idea to designate and identify where those funds go for capital.
Cocking would like to see it designated towards the wastewater treatment improvements and
save on increases to rates. Nafstad stated if designated there, over the course of a couple years, it
would result in a significant savings on rates.
Lannes explained that capital can be earmarked but can be moved as well. Lannes reminded
Council that the preliminary budget approved in September can be reduced before the final
budget is approved, but not increased. Hendrickson inquired about insurance and Lannes
reported premiums may increase 2-10% and she included the 10% to be on the safe side.
Council directed staff to revise the budget to no more than a 2.99% levy increase and to include
a 3% COLA and to designated the additional 1.5% to capital for WWTP improvments.
4. Fire Capital Summary
Bullen provided an updated pricing sheet for both the engine and aerial truck replacements. He
stated that the pricing includes the multi -unit purchase discount as well as a prepay discount for
prepaying in 2019. He stated that there is also the option to prepay in 2018, but he did not feel it
would be a significant enough savings and they have already figured a payback plan. He stated
the only item not included is the one time equipment purchase that would be needed in 201.9.
The discounted pricing ends at the end of September 2018 with delivery in August and
September 2019,,Ile would like to come back with a purchase agreement for formal approval in
September. Bullen stated he will be receiving, trade-in values for current equipment and reported
the purchase contract will have the option for either trade-in value of the city can sell the
equipment outright.
5. Centennial
Nafstad reported that the Parks Committee will be meeting next week along with some others to
discuss details. Nafstad reported that a local firm has submitted several draft centennial logos.
Hendrickson inquired about the commemorative art piece and Nafstad reported the artist he has
been working with can no longer do the piece, but he did suggest another artist to Nafstad.
6. Adjournment
Motioned by Hendrickson, seconded by Hudson, to adjourn the workshop at 8:44p.m. Ayes:
Llendrickson, Cocking, Hudson, Olson, and J"'etsch. Nays: None. Absent: None. MOTION
DECLARED CARRIED.
Respectfully submitted,
K mberly, A. JJ/bdena
City Clerk,/
City Council Meeting Minutes Page 2
Workshop Meeting of August 20, 2018