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09/08/1987 - City Council Special MINUTES OF A SPECIAL MEETING OF THE EAGAN CITY COUNCIL Eagan, Minnesota September 8, 1987 A special meeting of the Eagan City Council was held on Tuesday, September 8, 1987, at 7:00 p.m. at the Eagan Municipal Center Building. Present were Mayor Blomquist and City Councilmembers Egan, Smith, Ellison and Wachter. Also present were Director of Finance VanOverbeke and City Administrator Hedges. PROPOSED 1988 BUDGET The City Administrator presented budget revisions that were discussed at the August 20, 1987, special budget workshop session. The City Administrator stated that additional expenditure reductions are being proposed in the amount of $68,220 and those reductions, in addition to the $131,680 reduced at the last budget work session, will reach the proposed $200,000 overall general fund reduction directed by the City Council. The City Administrator reviewed on a department by department basis all the proposed expenditure reductions. Upon reviewing the manpower and capital equipment needs and reductions, it was suggested that the Director of Public Works consider the elimination of a plowing route and either absorb the new plowing route with existing routes or consider a second contractural route in the community. The City Administrator stated that there is no reduction in manpower equipment that would directly impact the snow removal routes and, further, that manpower distribution for a street maintenance employee is only 200 of the 2080 work hours per year for snow maintenance. There was also a discussion regarding the need to replace certain vehicles with 60,000 to 70,000 miles that are categorized as severely rusted. Members of the City Council raised questions as to why equipment is rusting at this age and re-emphasized that all maintenance vehicles will be rustproofed at the time of acquisition and should be properly maintained to allow for longer life expectancy. The final reduction including the $161,000 of capital and operating reductions including manpower is $214,000. The City Administrator was directed to reduce the equipment certificate amount from $571,000 to $357,000 which will be fully funded as a special debt levy in 1988. City Councilmembers discussed the necessity to reduce additional dollars in the operating budget to retain the proposed mill rate reduction and eliminate a second year debt obligation for the use of equipment certificates to acquire certain proposed capital outlay. City Councilmembers reviewed the proposed manpower and it was determined that the Community Development Director would be budgeted beginning April 1 instead of the proposed January 1, one-half custodian was removed from 1988 and the full-time Fire Chief was delayed until 1989. There were also capital items pertaining to the Street Department that were further reviewed and reduced including the proposed paver and grinder, sign truck and street sweeper. The capital reduction is $161,000. The Director of Finance also reviewed the revenue projections which were reduced by $200,000 to reflect a more conservative projection for building permits, plan check fees, administrative transfer, interest earnings, Special Minutes September 8, 1987 Page Two and the central services maintenance of Public Works. The Director of Finance also commented on an increase to the Cable TV reimbursement estimated at $15,020. After further review, it was determined by the City Council that the final proposed 1988 budget to be considered at the public hearing on September 15, 1987, is $8,652,100. It was noted that as a result of the high increase in assessed valuation and the various budgetary reductions made by the City Council, that a mill rate reduction will be realized in 1988. FIREMEN'S RELIEF ASSOCIATION PENSION FUND The City Administrator reviewed the Firemen's Relief Pension fund proposal that was presented to the City during late spring 1987. He stated that direction is required for his meeting that is scheduled for Wednesday, September 9, with the Pension Committee. Direction was given to the City Administrator to offer a monthly benefit of $250 for a period of five (5) years and to approve a disability benefit for any firefighter who is injured in the line of duty prior to his or his vesting which occurs at the 10th year. Members of the City Council also stated that the new pension amount would only apply to those years of service accrued after January 1, 1988. The existing monthly benefit would continue for those years of service through December 31, 1987, for each volunteer firefighter. FEDERAL DISASTER The City Administrator informed the City Council that Dakota County was approved as a Federal Disaster County and will be eligible for Federal Disaster Aid for the July 23, 1987, storm. O'NEILL VS CITY OF EAGAN LAWSUIT The City Administrator stated that a petition was filed by Gerald Duffy representing Robert and Grace O'Neill in the lawsuit, O'Neill vs City of Eagan. The City Administrator reviewed the status of the lawsuit stating that the City Attorney is requesting a review of land use plans that were prepared for the O'Neill property. There was a brief discussion regarding the status of the lawsuit with no action required or taken on this item. ADJOURNMENT There were no additional items of business and the meeting was adjourned at approximately 10:15 p.m. TLH Dated September 8, 1987 1, 0, C t Clerk