August 22, 2016, Work Session Minutes

CITY OF SPRING PARK
WORK SESSION MINUTES
AUGUST 22, 2016 – 7:00 PM
SPRING PARK CITY HALL

CALL TO ORDER - The meeting was called to order by Mayor Williamson at 7:00 p.m.

Council Members Bruce Williamson, Mayor; Shirley Bren; Gary Hughes; Megan Pavot;
Present: and Pamela Horton.

Staff Present: Dan Tolsma, City Administrator and Theresa Schyma, City Clerk.

Others Present: Michael E. Mason, resident; Catherine Kane Palen, resident

1. 2017 BUDGET DISCUSSION – Mayor Williamson provided a summary of the proposed budget schedule.

City Administrator Tolsma presented the 2016 year to date revenue and expenditures and the Proposed 2017 Budget and Tax Levy. The three main things that are going to impact the 2017 budget are 1) the Fire service contract is increasing from $135,080 to $140,000; 2) the Police service contract is increasing from $402,746 to $423,750; and 3) the General Fund bond payment amount is increasing from $49,002 to $128,883. Each $10,000 increase represents a 1% budget increase. Therefore, the police and fire increases would be approximately $26,000 or 2.6%.

City Administrator Tolsma stated that the 2016 revenues and expenditures have been tracking closely to budgeted amounts throughout the general, water, and sewer funds. We are currently 62.5% through the calendar year and expenditures are at 62.49% year to date. Many expenditures are front-loaded so it is important to note that the City is exactly on budget for expenditures.

City Administrator Tolsma noted that he did not do a detailed split of the expenditures associated with the new contract with PeopleService for Public Works services. He stated that the former Public Works Superintendent’s time was usually split the same way every year so he automatically split the PeopleService expenditures into 20% General Fund, 40% Water Fund, and 40% Sewer Fund.

City Administrator Tolsma continued that the budget is pretty basic but the Council needs to discuss the levy. He asked for feedback regarding the levy amount and stated that there really aren’t many areas where cuts can be made but everything could be looked at again if the Council is uncomfortable with the proposed levy amount.

Council Member Hughes asked to discuss the proposed Capital Improvement Plan (CIP) projects.

City Administrator Tolsma detailed the proposed CIP projects for 2017. He noted that smaller projects under $5,000 wouldn’t appear in the CIP but asked Council to notify him of any minor projects they would like to see in 2017 so that he can add it in the budget.

The City Council consensus was to have staff look into filing a grant application for resurfacing the tennis court so that the court can be properly resurfaced to last longer.

Council Member Hughes questioned what the City’s current water meter replacement program is.

City Administrator Tolsma responded that if there is a malfunctioning meter the City would target that meter for replacement but there currently is not really a program. The risk is that if you let the meters go too long then they start to slow down and then you are under-billing users. The meter readings are what the City bases the water revenue on so that is why accurate readings are necessary. The city-wide water meter replacements are in the CIP but have a date yet to be determined.

Council Member Horton questioned if 1) the LMCC would be able to assist with the City Hall server upgrade; 2) the need for a dynamic sign since we just partnered with Hennepin County on the dynamic sign by the water patrol station; and 3) the need for a vehicle the part-time seasonal employee when there is a City truck that is no longer being used by the former Public Works Superintendent.

Council Member Hughes also questioned the need for a dynamic sign since he believed the Hennepin County sign was meant to be for the community. If that is not the case, he does believe the city should have a dynamic sign to display events. He added that since the City is doing a beautification project on Sunset Drive and County Road 15 that might be the best place for a sign but the City does not own that property.

Mayor Williamson responded that the City would likely have to enter into a negotiation and possibly an easement for a City sign in a good location with maximum exposure. He stated that since Spring Park does not have a chamber of commerce anymore a dynamic sign could help with advertising.

Council Member Bren brought up the idea of having a community celebration in the summer to help bring the residents together.

Council Member Pavot agreed and suggested a food truck festival in Thor Thompson Park.

Mayor Williamson suggested a more detailed discussion of the proposed CIP projects occur at a meeting in October in order to prioritize and figure out funding.

Council Member Hughes questioned the total estimated cost of the City Hall server upgrade and wondered how many improvements would be able to occur for $15,000.

Mayor Williamson questioned having any cost in 2017 for Elections.

City Administrator Tolsma responded that the amount originally budgeted for the 2016 election will not cover all of the anticipated costs so he decided to offset those costs in 2017.

City Administrator Tolsma stated that a new department number was created for contracted public works services with PeopleService.

City Administrator Tolsma stated that the numbers would be added to the Public Improvement Revolving Fund once the Council decides which projects will be moving forward.

2. MISCELLANEOUS – None.

3. INFORMATIONAL ITEMS
a. LMCD Environmental Assessment & Request for Comment – Council Member Hughes provided a summary of the assessment and timeline.
b. MFD Press Release
c. LMCC Schedules


ADJOURNMENT – The meeting was adjourned by unanimous consent at 8:53 p.m.

Date Approved: September 6, 2016

_____________________________
Theresa Schyma, City Clerk

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Dan Tolsma, City Administrator