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08/31/1993 - City Council Special MINUTES OF A SPECIAL MEETING OF THE OCZ72 EAGAN CITY COUNCIL Eagan, Minnesota August 31, 1993 A special City Council meeting was held on Tuesday, August 31, 1993 at 5:00 p.m. at the Eagan Municipal Center Building. The purpose of the meeting was to discuss police dispatcher negotiations and the preliminary 1994 budget and property tax levy for payable 1994. Those In attendance for the executive session to discuss police dispatcher negotiations were Mayor Egan and City Councilmembers Awada, Hunter, Masin and Wachter. Also In attendance were Assistant to the City Administrator Duffy, Chief of Police Geagan, special counsel for labor matters, John Roszak, and City Administrator Hedges. Following the executive session, additional members of the City staff that were In attendance Included Director of Finance VanOverbeke, Director of Parks & Recreation Vraa, Director of Public Works Colbert, Acting Director of Community Development Hohenstein and Fire Chief Nelson. EXECUTIVE SESSION DISPATCHER NEGOTIATIONS Mayor Egan announced that the City Council would be In executive session to consider the status of the police dispatcher negotiations. The meeting was recorded by Assistant to the City Administrator Duffy and adjourned In executive session at approximately 6:15 p.m. DEATH/POLICE OFFICER LOU JESKA Chief of Police Geagan provided information to the City Council on the tragedy that occurred on Monday, August 30, when Police Officer Lou Jeska was the victim of an automobile accident at the intersection of Cliff Road and Pilot Knob Road while In the line of duty. City Councilmembers expressed their condolences to Officer Jeska's family and the Police Department and agreed as a group that they would all be in attendance at the funeral Thursday, September 2. 1994 GENERAL FUND BUDGET/TAX LEVY FOR PAYABLE 1994 City Administrator Hedges stated that the purpose of the City Council meeting is to determine a proposed property tax levy for payable 1994, a proposed 1994 general fund budget and set a public hearing date and a continuation hearing date for truth-in-taxation. He stated that the total budget proposed for 1994 is $13,633,100 which is an Increase of approximately 91% from the 1993 budget. He discussed expenditure appropriations, stating the largest dollar amount is for personal services which Includes a salary and benefit increase for all personnel, compensation and benefit Increase for the volunteer firefighters and some new positions along with the conversion of some temporary/seasonal to regular positions as a part of the personnel considerations. He further stated that the proposed budget includes a larger appropriation for capital outlay than the 1993 budget which will require additional review and consideration by the City Council. He stated that If the contingency and capital outlay were adjusted to the same spending level as 1993, the budget would increase by $953,000 or 7.6% as an example. The City Administrator also commented that the activity-based costing study that was concluded in June for calendar year 1993 was Incorporated to reflect the proposed budget by service program for 1994. City Administrator Hedges stated that the budget document is preliminary, however, the tax levy certified payable 1994 can be decreased but cannot be increased over the original certification. City Administrator Hedges reviewed the revenue estimates, explaining trends for both non-tax and tax revenues since 1991, significant changes in the 1994 revenue estimates and a breakdown of the proposed 1994 ad valorem tax, including HACA and fiscal disparities. Director of Finance VanOverbeke reviewed a table that compares payable 1993 with estimated 1994 values and rates illustrating the property tax impact on homestead residential property and further Page 2/EAGAN SPECIAL CITY COUNCIL MEETING MINUTES August 31, 1993 information on gross tax capacity, net taxable valuations and other pertinent Information that recognizes a tax capacity rate increase of approximately 8%. City Administrator Hedges reviewed the dates for the truth-In-taxation hearings, stating that December 7, 1993 Is proposed for the Initial truth-in-taxation hearing, December 15 for the continuation of the truth-in-taxation hearing and December 16 as a meeting to adopt the levy and budget If the same is not completed on December 15. City Councilmembers discussed the preliminary budget In detail asking department heads various questions about proposed spending levels. There was also a discussion regarding the net impact on a market value home if property taxes are increased by approximately 8%. Director of Finance VanOverbeke stated that a on $100,000 market value home, assuming there is no market value Increase, the total dollar amount increase from 1993 to 1994 is $21 or less than $2 per month. Councilmembers expressed a desire for additional Information regarding the classification change for the temporary/seasonal employees. Specifically, what are the related costs, what are the benefits to the City and what impact, if any, will the change have on revenues. Finally, it was noted that the proposed change Is contrary to previous City policy relative to staffing for peak work load periods. Concern was expressed and questions were asked about addressing the oak wilt problem. Director of Parks & Recreation Vraa explained that the proposed new maintenance employee would provide some help, but there is nothing in the proposed budget to substantially expand the existing program. Questions were raised about the need for new building maintenance personnel, while consideration of consolidation of responsibility for buildings maintenance was undertaken. Proposed capital outlay appropriations, especially in the area of computer equipment, were discussed. The need for assurance that items were being competitively purchased was stressed. A desire to Incorporate revenues into the activity-based costing program was expressed. Finally, questions were raised about the survey of legal services costs and direction was given to conduct some additional detailed study with specific communities. Mayor Egan summarized the budget session by thanking the City Administrator and Director of Finance for the detailed information provided to the City Council and further that the budget is preliminary and will require more review on the part of the City Council. Members of the City Council stated that the proposed property tax levy is appropriate for certification realizing that the amount can be decreased as the Council furthers their study of the proposed budget. City Administrator Hedges stated that the preliminary general fund budget, a certification of the 1994 property tax levy and truth-in-taxation hearing dates will all be scheduled for City Council consideration at the September 7 meeting. LEASE PURCHASE ACQUISITION/NEW COPY MACHINE Director of Finance VanOverbeke stated that the City was contacted by representatives of the Eastman Kodak Company regarding a promotion within their firm to upgrade the City's existing 235AF duplicating machine. He stated that In 1988 the City entered Into a three year lease purchase agreement to acquire the existing copier. Since the machine is owned by the City, the only monthly cost Is for maintenance on a per copy basis. The current monthly average number of copies is approximately 100,000 which generates a monthly maintenance cost of about $1,081 as explained by Director of Finance VanOverbeke. He further stated that the maintenance for proposed 1994 will require a monthly fee of approximately $1,300. Director of Finance VanOverbeke then explained that Kodak is proposing a five year lease purchase at $476 per month and a flat fee monthly maintenance cost of $875 for up to 1.2 million copies for a total monthly cost of $1,351. After review and consideration by the City Council, authorization was given to proceed with this lease purchase agreement to satisfy the August 30 deadline and require the same action be considered for official ratification at the September 7 City Council meeting. Page 3/EAGAN SPECIAL CITY COUNCIL MEETING MINUTES 0 r2 7'` August 31, 1993 ADJOURNMENT There being no further business, the meeting was adjourned at approximately 9:00 p.m. LTLH Aix.Et 31, 1993 Date Aty Cierk