SUNFISH LAKE SPECIAL COUNCIL BUDGET STUDY MEETING – AUGUST 6, 2013

6:00 P.M. - ST. ANNE’S EPISCOPAL CHURCH

Attendants:

Mayor: Molly Park
Councilmembers: Cathy DeCourcy, Steve Bulach and Mike Hovey.

City Treasurer: Ann Lanoue
City Engineer:  Don Sterna
City Planner:  Alan Brixius

City Clerk: Cathy Iago
Councilmember JoAnne Walstrom was absent.

1.   CALL TO ORDER:     Mayor Park opened the meeting at 6:00 p.m. for the purpose of discussing the proposed Sunfish Lake 2014 Budget.

2.   DISCUSS CITY OF SUNFISH LAKE PROPOSED 2014 BUDGET:  Mayor Park asked Treasurer Lanoue to provide an overview of the proposed 2014 budget.

Treasurer Lanoue distributed a revised copy of the Property Tax Levy Comparison she had previously sent to Council. She explained that the State had a new formula for calculating distribution of Local Government Aid (LGA) Funds to Minnesota cities, however; the City of Sunfish Lake still does not receive and funding under the new formula.  She advised that beginning January 1, 2014 Minnesota cities would be exempt from paying sales tax. She explained that she had not yet calculated the amount of money that the City would save due to the exemption, but she did not anticipate it would be a substantial amount. She stated that she would have to provide an estimate of the savings prior to the Truth in Taxation public hearing that the City is required to conduct prior to certifying the Final Levy and 2014 Budget in December of this year.  She noted that after the public hearing, the Council must adopt the Final Tax Levy and 2014 Budget and she would then send the resolutions to Dakota County and the State Auditor.

Treasurer Lanoue referred to the Budget Analysis document that listed the staff requests for the upcoming year. She explained that next year is a gubernatorial election year and that Clerk has advised Dakota County wishes to purchase new election equipment for all cities. She stated that the Clerk requested $6,500 be placed in the election budget for purchasing the new election machine.

Clerk Iago explained that Dakota County offered a 50/50 cost sharing to purchase new equipment in the past, and she anticipates this may be the case with the new equipment. However, she recommended the full cost be placed in the budget in the event no cost share is proposed.

Councilmember Hovey questioned the decrease in the number of homesteads within the City from 214 last year to 208 this year.

Treasurer Lanoue stated she was provided those numbers from the former Treasurer and she was unsure where he found that information; she offered to contact him to verify the information.

The Treasurer explained that she left the revenues and property taxes blank since they are not part of the levy calculations.  She stated that the City Engineer and Planner had submitted memorandums regarding changes to their budgets and they are in attendance to respond to questions. She noted that a significant portion of the budget goes to Police and Fire services, however; the Police budget remains the same as the 2013. She was advised by staff at Mendota Heights that the Fire Department budget may decrease slightly; however, the City of Mendota Heights has not yet held their budget meeting. She further explained that the Fire Department proposes to purchase $70,000 in equipment, and that the amount budgeted includes Sunfish Lake’s percentage of the equipment purchase.

Councilmember DeCourcy asked if the City had considered contracting with the West St. Paul Fire Department.

Treasurer Lanoue explained that in her opinion the costs would be substantially higher for their services since they are not a volunteer department. The City Clerk agreed and pointed out that West St. Paul and South St. Paul fire departments were combined into the South Metro Fire Department.
Treasurer Lanoue explained that the Building Inspector estimate remained the same; she noted that the revenues for this year were higher due to construction of a new home. She advised that the Septic Inspector also remained the same since she is not aware of what those costs involve.

The Clerk explained that Dakota County now does the septic mailings and that the cost per household was approximately $2.50; she noted that not all households are mailed reminders at the same time and the County bills the City for the administration of the septic mailings.  She advised that the Septic Inspector charges are paid by the homeowners.

The Treasurer stated that she left her salary the same as this year and pointed out that she is limited to the amount she can make since she collects Social Security and her PERA retirement.

Treasurer Lanoue advised that the planner requested a $6,000 increase and asked Planner Brixius to provide information on the adjustment.

Planner Brixius distributed the 2013 Billing Recap for the planning activates this year.  He noted that this has been a busy year and that only $1,419 remains in the budget. He explained that staff anticipates some slowdown in the number of applications; however, there remains follow up work on the applications that have been approved over the summer months. He stated that due to staffing issues in his office, the City was paying a higher rate per hour for the principal planners and he does not anticipate that will continue in 2014. He further noted that some recent applications have required additional meetings with the planning staff to verify information because the applicants did not have their professional contractors attend the meetings.

Councilmember Hovey asked if the hours for those additional meetings were billed to the applicants. Planner Brixius explained that hours are not billed for inquiries, only after a formal application is submitted to the City. He suggested that Council may adopt a policy that limits such inquiries to only two meetings prior to submitting a formal application and that would reduce the costs. 

The Planner advised that the original request was for $30,000 in 2014, which is a $6,000 increase; however, he suggested that $27,000, or a $3,000 increase, may be sufficient and that he would attempt to keep the costs similar to the $24,000 that was the amount budgeted in 2013.

There was discussion relating to how other cities handle pre-application meetings with potential clients.  The Planner explained that his staff schedules a block of time to meet with applicants and that the planning staff determines whether or not an application would be approved at that meeting.  He noted that his staff is becoming more familiar with the policies regarding development in Sunfish Lake and that should assist with eliminating the need for additional pre-application meetings. Council concurred that an additional $3,000 would be appropriate and that staff should attempt to limit the number of meetings with potential applicants.

Planner Brixius left the meeting at 6:35 p.m.

Councilmember DeCourcy asked if the City Forester would support cutting back on his budget and commented that in the event an Emerald Ash Borer infestation occurs the City costs to have him remove the ash trees would be huge.

Councilmember Hovey noted that the City is only responsible for removing infested trees on City property and not throughout the City. He asked if the City had conducted a count of the species of trees on City property

The Mayor stated she was unsure if a tree count had been done; she asked if the Forester had requested an increase in his budget for the upcoming year and the Treasurer responded no.

Councilmember DeCourcy pointed out that the costs could be high if EAB infestation occurs.  The Treasurer explained that the Forester did not address the issue in his request; therefore the amount remains the same as 2013.

The Treasurer advised that the City Engineer submitted a memorandum on his 2014 budget requests.

Engineer Sterna was present to discuss the proposed engineering portion of the budget. He explained that the cost for engineering services would be similar to 2013. He noted that $7,500 was placed in the budget for the MS4/NPDES Permit update and explained that the permit must be updated every 5-years and new standards were adopted. He stated that the water quality CAMP monitoring program remains the same.  He advised that the Charlton Road Maintenance costs were slightly increased $1,750 for dust control.

Councilmember Hovey asked if dust control was done every other year on the road.  The Engineer agreed and discussed the product that will be used to control dust and the fact that it has a minimal environmental impact.

The Engineer advised that the General Street Maintenance budget would decrease slight since sign replacement was done this year. He noted that the Bituminous Maintenance would remain the same and the Road Shoulder Maintenance would increase slightly. He pointed out that the Capital Improvement Project (CIP) portion would decrease due to the fact that last year’s seal-coating was completed and there are no seal-coating projects proposed for next year.  He advised that this budget includes culvert cleaning on Charlton Road and that no culvert cleaning was done this year. He also noted that if the proposed 2014 Road Improvements moves forward, a portion of the costs associated with the project would be included in the proposed assessments to residents.

Engineer Sterna stated that the proposed cost share of $3,000 to the City of Inver Grove Heights for plowing a shared border street remains the same as 2013.  He advised that he reduced the snow removal budget for other City streets $5,000; he explained that the 2013 budget was $35,000 and he requested $30,000 for 2014. He noted that the total amount spent for 2013 to date was $24,000 and that there are funds remaining to be spent this winter. He commented that the expectations of residents for plowing events appears to be increasing and that he receives more phone calls relating to plowing or sanding streets during the snowfall events.

The Engineer advised that the total engineering budget shows a net decrease of $8,000 from last year’s budgeted amount and reiterated that a portion of the costs from any road improvements in 2014 may be recouped from assessments to residents.  

Councilmember Bulach questioned the $9,000 for road maintenance on Charlton Road. He commented that the City has been maintaining the road for 20 years and asked why it has not been improved to a bituminous surface; he questioned if the residents are split in their decision for a bituminous road surface.

Mayor Park explained that the residents are split in their decision regarding the road surface, but the main factor delaying the road improvement is that the City does not have easements on several properties adjacent to the road and that makes improvements cost prohibitive. She commented that if the City had completed improvements to the road when they were initially discussed in the 1990’s, the improvements would have been paid off within 10 years.     

Councilmember Hovey agreed and commented that two questionnaires regarding improving the road have been sent to residents; he explained that the first one sent in the 1990’s showed a 75/25 split against a bituminous road and the most recent survey showed a 50/50 split on a bituminous improvement.

The Mayor pointed out that discussion of improving Charlton Road is not a dead issue, but it remains controversial.

Councilmember Hovey noted that the north end of the road receives the most traffic due to the church and requires more maintenance.

Engineer Sterna suggested that the City may consider improving a portion of the road where residents are amenable to the improvement and willing to provide easements and pay assessments.

Councilmember Bulach commented that in his opinion it is unfair that the rest of the taxpayers are paying for maintenance of the road.

Treasurer Lanoue advised that insurance, memberships, surtax and office supplies remain the same for next year and that the rent for the church increases slightly under a contract with the City.  She stated that the website also remained the same.  She explained that she will monitor these items since this is her first year of employment.
Councilmember Hovey explained that he maintains the website for free and the City pays the hosting fee at a 3-year rate.

The Treasurer advised that the debt levy is per the bond schedule and summarized by stating that the Council could adopt a budget with no levy increase for the upcoming year. She stated that market values had increased and this should result in a reduced tax rate.

Mayor Park asked if the Treasurer would make the adjustments as discussed this evening and bring the final version of the proposed 2014 budget for Council adoption at the September meeting. 

Treasurer Lanoue agreed to do so and explained that once the preliminary budget is adopted in September, the Council may not increase the tax levy, but may decrease it in December at the public hearing.    

Mayor Park asked if there was any further business for discussion and hearing no response, called for adjournment.

3.   ADJOURN:   Councilmember DeCourcy moved, to adjourn the Study Meeting at 6:55 p.m., seconded by Councilmember Hovey and carried. (4-0)

__________________________                                            ___________________________

Molly Park., Mayor                                                      Catherine Iago, City Clerk