08/29/1995 - City Council Special
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MINUTES OF A SPECIAL MEETING OF THE
EAGAN CITY COUNCIL
Eagan, Minnesota
August 29, 1995
A special meeting of the Eagan City Council was held on Tuesday, August 29, 1995 at 5:30 p.m. at the
Eagan Municipal Center to review the "draft" preliminary 1996 General Fund Operating Budget. Present were Mayor
Egan and Councilmembers Wachter, Awada, Masin and Hunter. Also present were City Administrator Tom Hedges,
Finance Director Gene VanOverbeke, Assistant Finance Director Tom Pepper, Director of Public Works Tom
Colbert, Community Development Director Peggy Reichert, Parks and Recreation Director Ken Vraa, Police Chief
Pat Geagan, and Fire Chief Dale Nelson.
DRAFT 1996 GENERAL FUND BUDGET
The 1996 General Fund Budget was presented by the City Administrator. He stated that the document Is
preliminary, and further that there are several policy issues the City Council will need to address as a result of the
presentation. He gave an overview of the proposed budget, which provides for an increase of $787,000 or 5.5%
over the 1995 budget. He noted that due to an increase in the net tax capacity, a decrease in tax increment
valuation, a decrease in the fiscal disparities contribution and an increase in the fiscal disparities distribution, the
budget is balanced at the 1995 final tax capacity rate of 22.235%. The contingency account remains at the 1995
level of $198,200. Additional personnel is limited to a half-time clerical position and additional dispatching in the
Police Department, additional seasonal in Central Services Maintenance, and additional seasonal, an intern position
and a position adjustment in Parks and Recreation. He noted that a transfer of $1,250,000 from the fund balance
Is proposed to be made to set aside funding for the expected City-wide radio replacement. A reserve in the amount
of $500,000 is also proposed to be set up from the fund balance to provide for potential revenue shortfall caused
by abatements. The $200,000 levy for abatements collected in 1994 and 1995 is eliminated in the proposed 1996
budget.
Revenue projections were presented and there was general discussion regarding potential reductions in
development-related revenues. There was also discussion about the 5-year budget projections with the suggestion
made by Councilmember Hunter that perhaps in the future a more realistic assumption of growth than 3% be used.
Councilmember Awada suggested that long-range staff reductions, possibly through attrition, be considered as
development-related revenues decline.
The Council then reviewed each department budget. Regarding the Mayor and City Council budget, an
error in accrued leave was pointed out and questions were raised about why Insurance costs were increasing so
much. In Administration, the purchase of a new typewriter was questioned. Also, suggestions were made about
a direct mail newsletter, going from three to four newsletters, and retaining a communications consultant.
Councilmember Hunter suggested in Data Processing that the budget estimate of $1,500 for two gigabytes
of memory was too high. He also asked if the City needed terminals, since he could get 20 of them for next to
nothing. There were no questions covering the proposed budgets for either the Finance or Legal Departments.
In Community Development, concern was raised about the benefit versus the cost of the City's membership
in the Dakota County partnership. Staff was directed to put together a response regarding the benefits to the City
of the organization.
Councilmember Awada asked a question about the edit system proposed in the Cable TV department
budget. City Administrator Hedges responded and there were no additional questions.
Regarding the Police Department, concern was expressed about having budgeted only 7 of 24 months for
two new officers added in 1995. The consensus was that new positions should be budgeted for the entire year.
A question was raised by Councilmember Wachter about union contracts and how health insurance is increased
relative to the increase to base salary. A comment was made that we should differentiate benefits from salary
increase and that total package increases should be 3%. General comments were made about the long response
time concerns for police and ambulance calls reported to Councilmembers by the public. Chief Geagan responded
to those concerns.
EAGAN SPECIAL CITY COUNCIL MINUTES; AUGUST 29, 1995
PAGE 2
In the Fire Department budget, Councilmember Wachter asked about the non-conforming nature of the Fire
Administration building and whether or not a new furnace is a good investment in that building. Councilmember
Awada asked about possibly moving the Old Town Hall to the other side of Pilot Knob Road to give more room for
a new/remodeled Fire Administration facility. Consensus was reached that the City should increase compensation
to the volunteer fire fighters and direction was given to increase that One item back to the department request.
Councilmember Awada asked how much the current pension level is.
There were no questions raised regarding the Public Works/Engineering budget, the Streets budget and
the Central Services Maintenance budget.
The Parks and Recreation budget was next considered. Councilmember Awada suggested and all agreed
that a "rent-a-cop" program should be considered as an alternative to a CSO position to provide park and/or
tournament security. All further agreed that this kind of position should operate in the Police Department.
Councilmember Awada asked what amount of the departmental 5.9% Increase is offset by revenues.
Councilmember Wachter questioned the use of a flail mower instead of what is currently used. Parks and
Recreation Director Vraa responded to this question and suggested evaluation of the most recent purchase before
further considering a flail mower. In Tree Conservation, a question was raised about doing Boy/Girl Scout projects
for tree diseasetnfestation identification.
There was consensus that the floor buffer was not required in General Government Buildings since
contractual cleaning was being proposed.
A general question was raised about the budget impact of reducing the tax capacity rate to the 22.150 which
was estimated for payable 1995 as opposed to the 22.234 which is the final rate.
The City Administrator reviewed the calendar to meet Truth in Taxation requirements. The dates as
presented were given approval.
The consensus of the City Council was that they are comfortable with the preliminary budget, with the
exception of the questions raised at this meeting, and they felt they will be ready for its presentation at the
September 5 Council meeting.
SPECIAL CITY COUNCIL MEETINGS
City Administrator Hedges stated that special City Council meetings should be set for the next two regular
meetings during the month of September. He further stated that due to a scheduling conflict, Black Hawk Middle
School is not available for the City Council meeting on Tuesday, September 19.
Wachter moved, Egan seconded a motion to schedule a special City Council meeting for 5:00 p.m. on
Tuesday, September 5, 1995. Aye: 5 Nay: 0
Hunter moved, Awada seconded a motion to reschedule the September 19 regular and special City Council
meetings to September 20, 1995. Aye: 5 Nay: 0
There being no further business to discuss, the meeting adjourned at 10:30 p.m.
TLH
August 29, 1995
Date City Clerk