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HomeMy WebLinkAbout2012 [11] Nov 20 November 20, 2012 Page 1 of 4 Pursuant to due call and notice thereof, the City Council for the City of St. Joseph met in special session on Tuesday, November 20, 2012 at 6:00 PM in the St. Joseph City Hall, opening the meeting with the Pledge of Allegiance. Members Present: Mayor Rick Schultz, Councilors Dale Wick, Renee Symanietz, Steve Frank, Bob Loso and City Administrator Judy Weyrens Citv Representatives Present: City Finance Director Lori Bartlett, Police Chief Pete Jansky and Public Works Director Terry Thene 2013 Bud4et: Weyrens stated that the purpose of the meeting is to continue discussion the general fund budget both operating and capital projects. With regard to capital projects, the City Engineer and Public Works Director have reviewed needed improvements and have prioritized the following projects for the next three calendar years: 2013 Proposed Capital Improvement Projects CSAH 75 Sewer Line $ 409,000 2013 Debt $ 1,634,000 Main Lift Station 550,000 Park Terrace-Design, Hearings 125,000 Revenue Sources Street Overlay 240,000 Assessments Street Overlay-Baker/7th 140,000 Water/Sewer Revenue St Cloud SIS Phase IV 674,000 MSA Funding Equipment Certificate 295,000 Debt Reserve and Tax Levy 2014 Proposed Capital Improvement Projects Water Tower Repairs $ 535,000 2014 Debt $ 3,134,000 Northland Drive 374,000 Park Terrace-Construction 2,100,000 Revenue Sources Assessments, Tax Levy, Water/Sewer Revenue, MSA 2015 Proposed Capital Improvement Projects Street Improvement, Clinton $ 350,000 2015 Debt $ 832,000 Street Improvement, Northland area 232,000 Equipment Certificate 250,000 Revenue Sources Assessment,Tax Levy Water Sewer Revenue Weyrens stated that during the years 2013—2015 the proposed capital improvement projects would add an annual debt levy of approximately$ 326,000 and during the same period $ 175,000 in levies would be expired. Therefore,the financial impact of the projects is an increase in levy of approximately$ 151,000. Weyrens added that in the years 2017 and 2018 the City will have$238,000 in debt expiring, reducing the overall impact of the capital projects. However, this does not account for additional projects such as community center or economic development projects. Loso questioned the proposed Park Terrace project and dates for completion. Weyrens stated that logistically it would not be possible to construct the project in 2013 as the public improvement hearing would have to be scheduled with the project ordered and designed. This process will take three to five months. Once the project is ordered, and designed it will have to be bid and an assessment hearing will take place. Due to the size and complexity of the project, it will take an entire season to construct so the City would want to start as early in spring as possible. Therefore, staff is proposing to conduct all the required hearings in 2013 as well as designing the project so that it could be bid in February 2014 with construction following. Frank questioned Sabart as to why the water tower improvements were moved to 2014 rather than 2013. Sabart responded that during discussions with the Public Works Director, he feels that the main sewer line under CR 75 is more urgent than the water tower and he concurs. The water tower has not shown November 20, 2012 Page 2 of 4 additional signs of failure so waiting one more year will not be problematic. If the sewer line under CR 75 would fail, it would have significant impacts. In addition, if the City is considering expanding sewer services to area near i-94, the sewer line replacement would be required. Therefore, the sewer repair is a phase one of the extension. Weyrens stated the second part of the budget discussion is the operation portion. The Council must approve a general fund levy by December 28 which relates to the expenditure budget. The preliminary budget resulted in a tax capacity rate of 55.185%, an increase of 4.7096 from 2012. Loso stated that he would like to reduce$ 250,000 from the general fund budget and set those funds aside for debt relief. The City has a lot of debt and the growth many not provide the required revenue and the City should be prepared and have funds set aside for such. Weyrens stated that the City does currently have a debt service relief fund for this purpose. In addition, growth has been sustaining the debt payments thus far. Loso stated that funds set aside could also be used for projects as currently the City does not have readily available funds for projects and sooner or later the projects, such as Park Terrace, will need to be completed. Wick requested clarification on the budget line for Council dues as only$ 6,000 was budgeted yet$ 22,000 was expended. Bartlett stated that she is in the process of placing all the Council memberships in one line item. While the numbers look skewed, the memberships for 2012 did not exceed the budget numbers. Weyrens stated that the Council material included the information on the St. Cloud Street Light Utility along with background information. If the City were to use the method that St. Cloud utilized, the setup cost will be between$ 7,000 and $ 10,000 as the fee is based on acreage and all the parcels would have be reviewed through GIS. Loso questioned if the setup fee could be included in the fee, to which Weyrens responded yes. Symanietz questioned if the process to establish the utility would require a public hearing to which Weyrens responded yes. Weyrens stated the total City budget for Street Lighting is$ 51,000, and unlike St. Cloud, the only City costs for street lighting is the purchase of power from a third party and capital costs. St. Cloud actually generates electricity and has a significantly higher budget. It is difficult to determine the impact for commercial or residential without completing some type of analysis of acreage. Weyrens stated that the current storm water utility is calculated on acreage and it might be possible to generate broad impact. Wick stated it would helpful to see the impact on commercial and residential before deciding to move forward. Schultz stated that it is his opinion that the decision is whether or not to expend funds for the setup fee. Changing the street light utility fees from taxation to utility provides for a proportionate sharing of expenses regardless of tax classification. Weyrens stated that part of the budget for 2013 includes the issuance of an equipment certificate. While the Council is not being asked to approve the equipment at this meeting, the items included on the proposed list are not funded in the general fund budget. The first payment for the debt will occur in 2014. Schultz questioned the proposed computer equipment and if the City has considered using offsite servers such as NetGain. Weyrens stated that the City did solicit quotes before investing in the current servers and it is not cost effective at that time. Schultz also questioned the future of the electronic storage program LaserFiche and if plans are to change with the ability of the new website. Weyrens stated that the City has a considerable investment in LaserFiche and she had not looked into the abilities of CivicPlus. Schultz stated that he wants to make sure that the City is not investing in old technology. Schultz questioned if the City will be reviewing the polling places or potential for new locations. Weyrens stated that the next election will be in 2014 and the polling places will be reviewed. Funds have been set aside for future expenditures for if and when the City adds a third precinct again. The City already has the additional electronic tabulator and HVA machine but would need to purchase additional booths. Schultz questioned the annual fee for participation in the St. Cloud Regional Human Rights Office and if the City is receiving an equal benefit from participation. Wick stated that he has requested information in November 20, 2012 Page 3 of 4 the past regarding budgets and audits and the City has not received a budget approved by the Joint Powers Board. Schultz stated that St. Joseph is the only Area City that opted to participate and he would be more willing to support of all the Cities participated. In tight budget years it is his opinion that the funds could be better spent somewhere else. Loso made a motion to withdraw from the St. Cloud Regional Human Rights Initiative; seconded by Schultr. Ayes: Schultr,Wick, Loso, Frank Nays: Symanietz Motion Carried 4:1 Frank questioned the proposed improvements to Clinton Village as the City has discussed the needed improvement for the past couple of years and it keeps getting delayed. He has been talking to some of the neighbors who need to complete maintenance on their driveway but do not want to complete the work now only to have it removed in a couple of years. Thene stated that the project has not been reviewed for construction plans and it is likely that the project will only be a mill and overlay and the curb will not be disturbed or minimal curb if there are bad spots. Unfortunately until the project is designed and reviewed it is not possible to indicate which curb sections will be impacted. The Council discussed the debt impacts from the proposed projects and the large spike in levy requirements for the year 2016. Weyrens stated that the spike is anticipated for one year and that could be offset with debt service relief funds and levy. Frank questioned if the projected debt impacts considered an increased bond rate. Bartlett responded that the rates have been increased one to two percent. Frank questioned the assessment formula for Park 7errace and how it relates to the policy and budget. Weyrens stated that the assessment revenue projected for the proposed projects has been estimated conservatively at 25%. While the policy indicates 60°/a the amount that can be assessed is that which is equal to the benefit. The following is a summary of operating budget discussion items: � Legislative bodies' budget of$6,300 includes all board and commissions with members earing$ 35.00 per meeting. • The City has not expended funds in the insurance category for the finance department as the employee has alternative insurance for 2012. • Cable Access budget includes funds for photography for the new website. • Fees for the new website have been included in the budget • Automotive service sin the police area has increased as the lease vehicles no longer include fuel. This has not been an increase to the budget as the lease price has dropped as well. • The budget for 2012 is lower than the 2010 budget, but$ 180,000 higher than 2011 budget due to reduced staffing and budget cuts. Loso stated that the proposed budget includes hiring a futl time officer in 2013 and he does not support the additional personal and indicated that it sha.�ld be removed from the budget. Jansky clar�ed that the proposed budget includes hiring an officer in July. Schulz questioned Jansky what happens if the City does or does not hire the officer. Jansky stated that if the officer is not hired, the City will continue to use part time officers to cover open shifts or for vacation. If the officer is hired, the Police Sergeant would again be supervising employees and the he would have more flexibility in covering shifts for vacations and holidays. In addition the City would reduce the part time officer hours.Jansky stated that the department is running about 200 ICR's ahead of last year which represents a higher work load. Frank made a motion to fund the full time officer for 2013 with an anticipated hiring date of July 2013 as is currently included in the preliminary budget. The motion was seconded by Wick. Ayes: Wick, Frank, Symanietz Nays: Loso Motion Carried 4:1 Loso questioned the membership to the St. Cloud Area Planning Organization(APO). He stated that he is a member and on policy board and they've only met maybe three times this year(several cancellations) Wick stated that he too questions sometimes the membership, but with the membership the City would not have access to federal funding for transportation. Schultz stated that while does not disagree with November 20, 2012 Page4of4 Loso and Wick, the City needs to be a member for funding opportunities. The executive director of the APO is aware of the concern of some of the member Cities and Executive Board will continue to discuss. Loso questioned the existing equipment certificates and when they expire. Weyrens stated that the City maintains two separate equipment certificates with one expiring in 2013 and the second in 2015. The certificates are always for a five year period. The equipment certificates provide a mechanism for the City to purchase needed equipment without spiking the budget. In reviewing the proposed equipment for 2013, Loso questioned the need for a second front end loader at a cost of$ 197,000. Thene clarified that the proposed equipment is new and includes a blade and wing. He further stated that the staff can be more efficient plowing the streets with a loader than a stand plow truck. Loso disagreed and stated that it is his opinion that the front end loader will end up like the road grader, parked more than used. The Council questioned Thene if he considered used equipment to which he responded not at this time. Loso stated that he also does not support the gator and questions the need. Thene stated that the gator would be used for watering the flowers and moving around town picking up garbage and odds and ends. Frank stated that it is his opinion that workers are more efficient when they have good equipment. Loso stated that the equipment could probably be rented for less than purchasing. The proposed equipment certificate also includes surveillance equipment for the parks and upgrading the computers. Lpso stated that he does not support the surveillance equipment as it seems like a want and not a need. He is looking for financial sustainability. Wick questioned the computer upgrade to which Weyrens responded is replacing one server, upgrading work stations and LaserFiche. Loso questioned the status of the Council going paperless. Weyrens stated that the City can use peg access fees for the electronic devices for the Council and the Council would retrieve the information from the City website. Wick questioned the possibility of Council members receiving City emails. Weyrens stated that the League has come out on a position on this and she will check into the possibility. The City can purchase users to add the Council if that is desired. Adiourn: Wick made motion to adjourn at 7:30 PM; seconded by Frank and passed unanimously. ��� Judy eyr s Ad ' istrator I This p�ge intentionally left blank I �