HomeMy WebLinkAbout2011/06/20 - ADMIN - Minutes - City Council - Study Session J/1 St. Louis Park OFFICIAL MINUTES
MINNESOTA CITY COUNCIL SPECIAL STUDY SESSION
ST. LOUIS PARK, MINNESOTA
JUNE 20,2011
The meeting convened at 6:30 p.m.
Councilmembers present: Mayor Jeff Jacobs, Phil Finkelstein, Anne Mavity (arrived at 6:35
p.m.), Paul Omodt, Julia Ross (arrived at 6:33 p.m.), and Sue Santa.
Councilmembers absent: Susan Sanger.
Staff present: City Manager(Mr. Harmemng), Deputy City Manager/Human Resources Director
(Ms. Deno), Controller(Mr. Swanson), Finance Supervisor(Mr. Heintz), Director of Inspections
(Mr. Hoffman), and Recording Secretary(Ms. Hughes).
1. 2012 Budget Discussion
Mr. Harmening presented the staff report and reviewed the policy questions for Council
consideration.
Mr. Swanson presented the 2012-2016 Capital Improvement Program (CIP) and funding sources
by department. He reviewed the 2012 assumptions and noted that salary and step increases have
been incorporated into each department budget and have been included in the projected 2012
budget. He added that the 2012 budget contemplates no use of any fund balance.
Councilmember Ross requested further information regarding the dramatic difference in the
community outreach budget.
Mr. Swanson explained that as part of the budgeting process, the City has attempted to more
accurately reflect where people spend their time and how their time is being charged. He stated
that the community outreach budget used to be $90,000 and the City used to transfer money from
the housing rehab fund. He indicated that staff is now recording a person's time in the
appropnate fund, resulting in more transparency in how funds are being administered.
Councilmember Ross asked how the revenues from the Convention and Visitors Bureau were
factored into the budget.
Mr. Harmening advised that the City currently collects money every month and is able to retain
5% which is placed into the Development Fund as a placeholder for the time being; the
remainder of those funds is transferred to the Convention and Visitors Bureau. He added that
Council will have further discussion regarding the handling of these funds in the Development
Fund.
Council discussed the City's debt service obligation and anticipated levy of 3-5% to maintain
current service delivery.
Mr. Swanson reviewed the funding source summary document for 2012-2016 prepared by staff
and incorporated into the LRFMP. He noted that the City's practice has been to include
everything in the Capital Improvement Plan whether or not a project is the City's obligation, e.g.,
sanitary sewer replacement projects undertaken by the Met Council. He advised that the
document does not include any type of community center and a placeholder for a minimal
sidewalks/trails project has been included for$1.8 million.
Special Study Session Minutes -2- June 20, 2011
Councilmember Santa requested information about the $1.5 million amount referenced in 2021
from Reilly Industries.
Mr. Swanson indicated he would review this item further and report back to Council.
Mr. Heintz presented the Long Range Financial Management Plan and briefly reviewed the
summary pages and each of the 14 funds included in the LRFMP. He stated that the Cable TV
Fund will continue to be monitored by staff and added that the Telecommunications Advisory
Commission is currently conducting a study regarding the future of cable. He advised that the
Housing Rehab Fund has significant expenditures every year and this fund will require changes
in the future including a dedicated revenue source.
Mr. Swanson indicated that discussions have taken place regarding ways to use the tax increment
in the Park Center TIF District and the potential for having a dedicated transfer from that TIF
District into the Housing Rehab Fund based on the City's goal of having an affordable, well-
maintained housing stock in the City.
Mr. Heintz reviewed the Development Fund and noted that there is nothing in the CIP that uses
the Development Fund and the main revenue source for this fund is interest earnings.
Councilmember Finkelstein encouraged Council to keep in mind the previous discussions
regarding ways to use the Development Fund, e.g., Highway 100 or Highway 7/Louisiana
Avenue.
Mr. Heintz briefly reviewed the HRA Levy Fund, Permanent Improvement Revolving Fund,
Park Improvement Fund, and Pavement Management Fund. He noted that the Pavement
Management Fund has a negative fund balance projected in 2021 as a result of shifting some
property tax revenue out of this fund into some other funds to make them more sustainable. He
indicated that this fund assumes no franchise fee increases for Xcel Energy and/or CenterPoint
Energy. He then reviewed the Capital Replacement Fund and Enterprise Utility Funds.
Mr. Harmening pointed out that the Enterprise Funds do not assume any changes in policy
relative to the City's ponds, wetlands, etc. based on recent study session discussions by Council.
Mr. Swanson stated that long term, most funds are sustainable as projected and those funds with
challenges include the Housing Rehab Fund, Cable TV Fund, Pavement Management Fund, and
Workers' Compensation Fund. He added that these funds are being analyzed by staff to ensure
long-term sustainability of all funds.
Councilmember Mavity stated that staff has done an excellent job in keeping staffing costs down
and asked if a comparison with other cities has been prepared.
Ms. Deno advised that a policy was adopted by Council in the late 1990's that requires the City
to compare its salaries with other suburban cities in the metro area and this is done as a matter of
routine every year. She indicated that a 2% increase in wages for 2012 is consistent with other
cities.
Ms. Deno reviewed the 2012 budget calendar and stated that the June 27th study session will
include a discussion regarding the potential State government shutdown.
Special Study Session Minutes -3- June 20, 2011
It was the consensus of the City Council that the 2012 budget process and timeline meet Council
expectations. It was also the consensus of the City Council that the general direction outlined for
the 2012 budget recommendations are in line with Council expectations.
The meeting adjourned at 7:32 p.m.
Written Reports provided and documented for recording purposes only:
2. Fire Stations Project Update
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