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08-30-95 Special CITY OF RICHFIELD, MINNESOTA SPECIAL CITY COUNCIL BUDGET MEETING August 30, 1995 MEMBERS PRESENT: Martin Kirsch, Mayor; Susan Rosenberg; Russ Susag; and Don Priebe. MEMBERS NOT PRESENT: Michael Sandahl. STAFF PRESENT:James City Manager; Steven Devich, Administrative Services Director; Thomas Ferber, City Clerk; Donald Fondrick, Community Services Director; Bruce Palmborg, Acting Community Development Director; Jack Erskine, Public SafetyDirector; William Fillmore, Liquor Operations Director; and Bridget Walstrom, Finance Manager. The meeting was called to order by Mayor Kirsch at 7:00 p.m. CONSIDERATION AND DISCUSSION OF 1995 REVISED/l 996 Item PROPOSED BUDGET, 1996 PRELIMINARY TAX LEVY AND TRUTH IN TAXATION HEARING DATES. C.L. NO. 241 City Manager Prosser reviewed Council Letter No. 241 regarding consideration and discussion of the 1995 Revised/l 996 Proposed Budget, 1996 preliminary tax levy and Truth-in-Taxation hearing dates. Administrative Services Director Devich provided an overview of the 1995 Revised/l996 Proposed Budget and 1996 preliminary property tax levy including the following: Calendar of budget events Major initiatives General fund history 1996 General Fund expenditures Expenditures profile Expenditures by division General Fund expenditures in constant dollars Number of full time employees General Fund revenues Local Government Aid 1996 proposed tax levy Impact of the 1996 proposed tax levy on an average home Tax capacity rate Tax capacity by property classification Council Member Priebe suggested that fiscal disparities revenues be shown City Manager Prosser stated that the 1995 Revised11996 Proposed Budget and Public Safety Director Erskine reviewed and answered questions regarding the following 1995 Revised/l996 Proposed Public Safety Department Budget and program highlights: 1. Public Safety Budget Summary 2. Support Services Project Richfield ¦ Business licensing ¦ Multi-lingual animal control information ¦ 3. Police Operations Patrol activities Business district patrol ¦ Citizen police academy ¦ Bike patrol ¦ 4. Fire Division Training/safety ¦ Fire inspections ¦ 5. Police Ancillary Services Civilian crime prevention specialist Holding facility (jail) ¦ Investigative trainee program Metro wide imaging system ¦ Convert part time secretary to full time Convert part time dispatcher to full time 6. Inspections Division Inspection activity Major construction projects in the community ¦ Contract with Bloomington for services ¦ Building permit fee increase proposed ¦ 7. Emergency Services Division Police reserves/explorers Community Services Director reviewed and answered questions regarding the following 1995 Revised/l 996 Proposed Community Services Department Budget and program highlights: 1. Community Services Department Budget Summary 2. Five Year Street Maintenance Program 3. Street Light Renovation User fee initiated ¦ ¦ ¦ ¦ 6. Computer Program Registration 7. Park Redevelopment/Capital Improvement Program Veterans Memorial Park parking lot addition/paving of picnic shelter area ¦ Arena dasher boards ¦ Golf course improvements ¦ Council Member Rosenberg requested staff provide information as to the cost of using the trash compactor truck for trash pick up in additional areas such as the 66th Street and Penn Avenue area. Council Member Priebe requested that staff investigate the costs of contracting with a private hauler to provide these services instead of buying the trash compactor truck. $4,500 as a contingency to cover the approximate cost for the multi-family residential 77th Street maintenance due to the fact that the assessment issue is yet to be resolved. stated the preliminary levy is a maximum levy but that the Council could lower the levy if that amount was not necessary. Administrative Services Director reviewed and answered questions regarding the following 1995 Revised/l 996 Proposed Administrative Services Department Budget and program highlights: Administrative Services Department Budget Summary Youth Employment Service Discontinued 1996 Presidential Election Costs Labor Relations Issues Contract Settlements Arbritrations ¦ Assessing Costs Risk Management Finance/Accounts Payable System 80,000 Motor Vehicle License Transactions Computer Upgrade Telephone Upgrade Council Member Priebe asked about whether motor vehicle licensing should be operated as an enterprise fund and requested that staff provide information about the motor vehicle licensing revenues. Acting Community Development Director reviewed and answered questions regarding the following 1995 Revised/l 996 Proposed Community Development Department Budget and program highlights: Community Development Department Budget Summary Revised Comprehensive Plan CDBG Funded Programs Personnel Changes City Planner position eliminated ¦ Addition of full time Section 8 position (currently hours/week ¦ program funded) Full time Administrative Assistant changed to part time ¦ Development Fund Programs Sage Apartment Communities Strategic Plan for Lyndale Avenue Cloverleaf Site Development Planning/Zoning Division Eliminated and Now in Administrative Budget Liquor Operations Director Fillmore reviewed and answered questions regarding the following 1995 Revised/l 996 Proposed Liquor Operations Department Budget and program highlights: Liquor Operations Department Budget Summary Liquor Store Sales Fourth Liquor Store Upscale product offering/margin ¦ Image enhancement ¦ Expand customer base ¦ Lead Liquor Clerk Position Reduce proposed full time position to 2 part time positions ¦ Public Awareness Additional Non-Operating Income Market research revenue ¦ Coop advertising revenue ¦ Lottery commissions Future Market Share/Needs Customer feedback cards ¦ In-house customer surveys ¦ Advertise customer service line ¦ Mayor requested that an article be placed in the Your City publication about the fourth liquor store and also about the liquor stores responsible sales policies. Council Member Priebe stated he felt the five year net income projections were not a very encouraging outlook for a City Council that just voted to open a new store noting that net income in 1995 is projected to be $649,000 in 1995 and $560,000 in 1999. August Liquor Store Operations Director Fillmore and Administrative Services Director reviewed issues related to personal service costs which impact net income projections, noting a conservative approach was used in developing the projections. Discussion followed regarding inclusion of the updated revenue and expenditure projections now that the fourth store has been authorized by the Council. Council Member Priebe asked about the impact of the fourth store on the fund balance. City Manager Prosser explained that the reduction of the cash balance for the construction of the fourth liquor store and the addition of the store as an equity asset in the fund balance. Council Member Priebe requested that the liquor operations summary be updated to reflect these issues. City Manager Prosser reviewed and answered questions regarding the following 1995 Revised/l 996 Proposed Legislative/Executive/Legal Department Budget and program highlights: 1. Legislative Travel ¦ Recognition ¦ Citywide employee ¦ Commissions Social Service Funding ¦ Clerical Support for Boards/Commissions ¦ ¦ 2. Executive Legal Retainer ¦ Human Services Update ¦ Prosecution Cost Increase Council Member Rosenberg requested that a report on the Shared Values Program be provided to the Council. City Manager Prosser discussed the status of the Shared Values process and stated he would provide a report to the Council. City Manager Prosser stated that the 1996 preliminary tax levy must be certified to Hennepin County by September 15, 1995. Council Member Susag stated he would like to see the 1996 preliminary tax levy set on September 11 at a level to cover the proposed portion of multifamily costs for the City Manager Prosser stated He that there are no major new programs. stated the in costs related to providing increased levy reflects the fundamental 3% increase