1. Call to Order. The workshop session of the Council of the City of Rogers was called to order by Mayor Bunting on Thursday, August 16, 2012 6:00 p.m. at Rogers Community Center, 21201 Memorial Drive, Rogers, MN, 55374.
Council present: Rob Bell, Jay Bunting, Don Hall, Rick Ihli, and Maureen Stanley.
Staff present: Jeffrey Beahen, Police Chief; Gary Buysse, Liquor Operations Manager; Stacy Doboszenski, Assistant City Administrator; Brad Feist, Fire Chief; Steve Stahmer, City Administrator; John Seifert, Public Works Supt.; Bret Weiss, City Engineer; and Lisa Wieland, Finance Director.
2. 2013 Budget Work Session
Administrator Stahmer stated the Council was handed the front page of the financial management plan (FMP); the summary page. For tonight's purpose, the front page is being used to get to a baseline 2013 preliminary budget. These numbers are subject to change; most likely changing downward. Stahmer proceeded with reviewing the summary page from the FMP, focusing on the 2012 amended budget compared to the preliminary 2013 budget.
Stahmer stated hours have been included to have a heavy equipment operator in public works, additional administrative support in the police department, and to bring administrative positions (finance) back to where they were prior to the cuts in 2009. With the positions being factored in, and with the known quantities today, the general fund operating budget would go from $5.7M to $6.1M.
Stahmer then reviewed total expenses, focusing on the transfer out to capital sinking funds. Finance director Wieland explained the various line items of the $569,000 that is being set aside for capital sinking funds. Wieland proceeded with the other items included in expenses: interfund loan for the public works building debt and the RAC subsidy.
Stahmer explained the $6.1M stating $207,000 is pass-through money for the safe & sober grant administration and $175,000 is for other positions added. Staff then reviewed the special levies with Council.
Stahmer then reviewed the increase in tax capacity with the annexation of Hassan stating with the preliminary figures the tax rate is currently at 38.227%.
Stahmer then reviewed changes in service levels stating John, Brad, and Beahen have looked at the possibility of adding a mechanic to the staff; it being fairly close to an offsetting reduction in labor to finance the salary for the position. Seifert explained the reduction of line items budgets across all departments relating to the mechanic position. Seifert also explained the ability to finish the bay with excess funds from the construction of the building stating there is enough money in the capital project fund to complete the bay with hoist, oil receptacle, tire changer, etc.
Wieland explained the impacts of fluctuating a tax rate. The larger the decrease in the tax rate, then a decrease in what the City receives back in fiscal disparities in 2013.
Stahmer discussed the planner position; mostly if not entirely offset by the fees that are being paid to the contracted planner plus the escrows received for commercial/industrial projects.
Hall questioned if the reductions in expenditures by adding a mechanic and planner would continue to be carried forward in future years, not just in 2013. Staff stated it would.
Council and staff then discussed the capital sinking funds. Staff stated Council can allocate the funds for specific purpose; they can be allocated and re-allocated if needed for other purposes by Council, not by staff. Staff stated the efficiency savings of the annexation and because of TIF 1 decertifying is what has enabled the creation of the capital sinking funds.
Staff and Council reviewed the following lines within the FMP:
• Bunting asked about line 13; staff stated the charges for services were reduced due to the Hassan annexation and no longer receiving funds for fire services.
• Staff stated line 11 is due to being the grant holder for safe & sober.
• Other financing sources; franchise fees coming from former Hassan and Rogers.
• Lines 23 & 24; seniors is not broken out in 2012, but it is in 2013. There are funds being allocated for a contractual hire or part-time hire to help run the senior programs.
Stahmer stated if necessary, we can hold another work session on August 28th in addition to the one being planned for September 11th; at that regular meeting the preliminary levy will need to be set. The levy can't increase after setting the preliminary, but it can always decrease.
Bunting stated we always set the preliminary as a maximum, and every year we have reduced it.
There was discussion on the impact to a former Hassan resident tax statement because of the 2012 zero levy set by former Hassan.
Wieland went through the documents to be received sometime in October prior to the setting of the final budget. Wieland added that staff has looked at salary splits and made some significant changes to make them reflect more accurately where time is being spent.
Council thanked staff.
Bell moved, Ihli seconded a motion to adjourn the budget workshop at 6:42 p.m.
Assistant City Administrator/Clerk