Council President Dean Hove; Council Members Peggy Rehder, Ralph Rauterkus, Lisa Bayley, Dan Munson, and Dustin Schulenberg

Transcription

1 Red Wing City Council Budget Workshop Red Wing Public Library Foot Room Council Members present: Council President Dean Hove; Council Members Peggy Rehder, Ralph Rauterkus, Lisa Bayley, Dan Munson, and Dustin Schulenberg Council Members absent: Council Member Jason Sebion was absent. Others present: Dan Bender, Mayor; Kay Kuhlmann, Council Administrator; Kathy Johnson, City Clerk; Marshall Hallock, Finance Director; Roger Pohlman, Police Chief; Tom Schneider, Fire Chief; Brian Peterson, Planning Director; Rick Moskwa, Public Works Director; Keith Schlichting, Assistant Finance Director; Jeff Schneider, Deputy Director of Public Works Solid Waste; Laura Blair, IT Director; Bob Stark, Deputy Director of Public Works Utilities; Jessica McGee, Library Director; Lynn Nardinger, Deputy Director of Public Works Public Services; Shawn Blaney, Deputy Director Public Works Buildings and Grounds; Tina Folch, Public Works Contract Administrator; Shari Chorney, Port Authority Business Development Director; Tony Grosso, Red Wing Police Department Captain; and Charley Nelson, Every Hand Joined Executive Director (arrived at 6: 45 p. m.) 1. Call to Order Council President Dean Hove called the workshop to order at 6: 00 p. m. 2. Goals of the, City Council Budget Workshop Council Administrator Kuhlmann reiterated the goals of the workshop: Review of the budget, addressing any questions from the Council. Direction from the Council related to funding requests. Fine- tuning of budget prior to final Council approval. 3. Review Budget Documents and Budget Memo Administrator Kuhlmann reviewed the Budget Memo, including information provided for comparison purposes. Assistant Finance Director Schlichting and Finance Director Hallock reviewed document formatting and provided additional information. 4. Discussion, Questions, and Direction Administrator Kuhlmann reviewed budget updates since the August 31, 2015, Budget Workshop: Tax capacity information has been incorporated. A disciplined approach to operations has been adopted along with a plan for growing capital for reinvestments. A tax levy increase of 2. 5 percent has been utilized for the 2016 budget. Strategies to accommodate anticipated tax capacity decreases in the future will need to be developed. Long- term funding requests may not be able to be sustained. Council Member Peggy Rehder recommended communication to funding recipients with regard to there being no guarantee of future funding. Page 1 of 5

2 Council Member Lisa Bayley inquired with regard to increases in operating expenses. Director Hallock and Administrator Kuhlmann provided clarification. Police Chief Pohlman provided an update with regard to discussions related to a school liaison officer cost- sharing proposal. Council Member Peggy Rehder inquired with Chief Pohlman indicated that Police regard to services provided to the schools. Department personnel are providing services on nearly a daily basis. Council Member Lisa Bayley inquired with regard to maintaining a budget placeholder for this position. Council President Dean Hove agreed with this suggestion. Administrator Kuhlmann discussed a proposal to hire a second building inspector which will be needed as a result of implementation of the Rental Housing Maintenance Code and to provide backup support for the current building inspector. Director Hallock commented with regard to license fees potentially covering the cost of the program. Council Member Lisa Bayley and Council President Dean Hove recommended further discussion of this topic. Administrator Kuhlmann will add this as a discussion item for the January workshop. Administrator Kuhlmann highlighted other notable General Fund fluctuations: Election expense. Fire administration. Public Works shifts. South Park skating rink expense, which should be covered entirely by a generous donation from James Pirius. Parks and boulevards staffing allocation. Other appropriations. Council Member Lisa Bayley inquired with regard to the current General Fund balance. Director Hallock provided additional information. Council Member Peggy Rehder inquired whether anticipated increased capital project expenses at the Sheldon Theatre could be covered by the General Fund contingency. Director Hallock commented regarding mitigation of additional project costs, both at the Sheldon Theatre and City Hall. Administrator Kuhlmann reviewed non -service and partnership contributions: Red Wing Ignite partnership - $ 50, 000. Fireworks - $ 10, 000 ( updates were provided). The Main Event - $ 10, 000. Red Wing Area Seniors - $ 10, 000 ( toward capital investment). Forward Red Wing - $ 10, 000 ( two- year agreement). Chamber of Commerce - $ 5, 000. Fishing Tournament - $ 5, 000 ( updates were provided). Council Member Lisa Bayley commented with regard to the need for a policy related to organizational funding requests. No changes were recommended at this time, but additional information will be requested related to assistance with fireworks and the fishing tournament. Support of the Holiday Stroll event was discussed, and additional information will be gathered. Page 2 of 5

3 Administrator Kuhlmann requested Council direction related to the following groups: Every Hand Joined - $ 15, 000 request. Red Wing WORKS - $ 5, 000 request. Downtown Main Street ( ongoing support). Council Member Lisa Bayley commented with regard to potentially allocating 2015 funding not utilized for Downtown Main Street to other organizations. Administrator Kuhlmann added that unused funding could be carried forward to next year. Council Member Dan Munson recommended maintaining a funding allocation for Downtown Main Street. Council Member Peggy Rehder commented that there are currently no personnel working on projects that this money was originally set aside to fund. Council Member Dan Munson stated that the DTMS structure and projects are under discussion. Council Member Ralph Rauterkus commented with regard to Downtown Conservancy project funding. Administrator Kuhlmann commented that downtown funding does not need to be allocated specifically to Downtown Main Street but could be utilized to move the Downtown Conservancy project forward on a contract basis. Council Member Lisa Bayley agreed with a downtown funding allocation. Council Member Dustin Schulenberg requested clarification of the funding allocation which was discussed. Council Members recommended including the requested $ 15, 000 for Every Hand Joined and $ 5, 000 for Red Wing WORKS in the 2016 budget. DTMS funding was discussed. Council President Dean Hove requested discussion of potential administrative costs related to the PACE Program. It was reported that a presentation will be provided at the November 23 Council meeting. The program is administered by the St. Paul Port Authority. Director Hallock commented with regard to the administrative process. Contract Administrator Tina Folch commented with regard to the purpose of the program. Administrator Kuhlmann discussed the proposed business analyst position. During the August budget workshop it was decided to allocate funds in the 2016 budget but not proceed with the hiring process until the administrative reorganization has been completed. Director Hallock provided an update with regard to the administrative IT Director Blair commented regarding process improvement and the importance of continuing these efforts. The reorganization process and timeline reorganization process. were discussed. Administrator Kuhlmann commented with regard to increased efficiencies and succession planning and recommended hiring the business analyst prior Council Member Lisa Bayley commented with regard to hiring of a business analyst and potentially an additional HR to the completion of the administrative reorganization. position later on and expressed agreement with this recommendation. Director Blair reported that a job description has been drafted and will be presented to the Personnel Committee for review. Council Member Peggy Rehder requested clarification of downtown funding versus Downtown Main Street funding. Council Members agreed that this should be further clarified. Page 3 of 5

4 Administrator Kuhlmann reviewed increases in transfers for operating expenses and for capital projects. Council Member Lisa Bayley requested clarification of library operating expenses. Library Director McGee provided additional information. Council President Dean Hove and Council Member Ralph Rauterkus inquired with regard to SELCO notices and Director McGee described this process. Administrator Kuhlmann reviewed enterprise funds. Public Works Director Moskwa clarified decreased debt service payments beginning in 2019 and provided rationale for proposed incremental sewer rate increases in order to replenish the sewer fund balance. Council Member Lisa Bayley inquired with regard to the duration of the rate increases and Director Moskwa provided additional information, stating that Public Works is attempting to be proactive in terms of infrastructure maintenance. Council Member Ralph Rauterkus commented with regard to bond funding. Director Hallock and Director Moskwa provided additional clarification. Council Member Ralph Rauterkus inquired whether funds could be transferred from the General Fund contingency. Director Hallock recommended against this approach and spoke in support of the proposed incremental rate increases. Director Moskwa provided additional clarification of the proposed sewer rate increases. Administrator Kuhlmann commented with regard to capital reinvestment Council Member Lisa Bayley commented regarding the impact of steadily increasing utility rates. Directors Moskwa and Hallock and Deputy Director considerations. Stark referenced comparison data from other communities. Debt service payments and the other enterprise fund balances were discussed. Council Member Peggy Rehder inquired with regard to single -sort recycling. Director Moskwa indicated that this topic on the agenda for discussion during the January workshop. Council President Dean Hove commented with regard to the significant cost of single -sort recycling. Deputy is Public Works Director Schneider commented with regard to challenges associated with single -sort recycling. Administrator Kuhlmann reported that the requested $ 2 million in grant funding toward the Solid Waste Campus is likely to be approved. Administrator Kuhlmann reviewed the Capital Improvement Plan. Deputy Public Works Director Blaney discussed the need for a new fire retardant curtain for the Sheldon Theatre. Administrator Kuhlmann reviewed the CIP in the context of leveraging other funds, reporting nearly $ 14 million in the budget from non -City sources for Directors Blair and Moskwa discussed the need for a UPS system to provide emergency power for City Hall where central systems are housed. Off-site electronic data retention was discussed. Director Moskwa and Deputy Director Blaney discussed generator issues. Administrator Kuhlmann indicated that more research and discussion will be needed. Council Member Peggy Rehder inquired with regard to the impact of the anticipated grant funding for the Solid Waste Campus. Directors Moskwa and Hallock discussed CIP funding sources and the scope of the project. Council Member Lisa Bayley inquired with regard to a proposed project for the History Center Building, listed as project number GOB Deputy Director Blaney provided additional information. Page 4 of 5

5 Council Member Lisa Bayley inquired with regard to proposed improvements to the Athletic Field. Director Moskwa and Deputy Director Blaney provided additional information and rationale for including the project in the 2016 budget. Council Member Peggy Rehder inquired with regard to old City Hospital Building. Administrator Kuhlmann will check with the Goodhue County Historical Society Executive Director with regard to the status of the feasibility study. Council Member Ralph Rauterkus inquired with regard to relocation of a Public Works building as a result of the bridge project. Director Moskwa reported that more information has been requested from the State related to relocation funding. He commented with regard to the possibility of utilizing a portion of the former Coke bottling plant as a Public Works storage and maintenance facility. He added that Public Works will need to vacate the current building by February of Potential backup plans were discussed. 5. Adjournment The workshop adjourned at 8:05 p. m. Dean Hove, Council President ATTEST: Kathy Seymour Johnson, City Clerk Page 5 of 5