1999-11-16MINUTF_~ - MOUND COMMITTEE OF THE WHOLE -NOVEMBER 16, 1999
The Committee of the Whole for the City of Mound, Hennepin County, Minnesota, met in
regular session on Tuesday, November 16, 1999, at 7:30 P.M., in the Council Workroom at
5341 Maywood Road, in said City.
Those present were Mayor Pat Meisel, Councilmembers: Andrea Ahrens, Bob Brown, Mark
Hanus, and Leah Weycker. Also in attendance: Acting City Manager Fran Clark, Finance
Director Gino Businaro, and Secretary Sue McCulloch.
Mayor Meisel opened the meeting at 7:35 p.m.
1.0 PROPOSED 2000 BUDGET.
The consensus from members present suggested reviewing the capital outlay section of the
proposed 2000 budget.
Councilmember Brown questioned the computer and printer purchase by the financial
department proposed for the year 2000. The Finance Director stated the equipment the
finance department currently has is outdated. It does not have the spreadsheet function, and
it does not have a CD rom.
Councilmember Brown questioned the purchase of two video cameras for the police squads.
He suggested purchasing one this year and possibility another camera next year.
Rather than going through the budget line by line as presented above, Mayor Meisel
suggested another method of handling the proposed budget for the year 2000. This would
involve having the Councilmembers find a number that would be palatable and then make the
cuts according the number in a percentage fashion. The 15 percent currently presented
seemed a little high to the Councilmembers. There was a suggestion to use 8 percent as a
palatable number.
Councilmember Hanus asked if the 8 % would be agreed upon meant that percentage of cut
across the board for each department.
The Acting City Manager suggested having the Departments Heads complete the downsizing
of their own proposed budgets once a number had been agreed upon. Councilmember Hanus
and Mayor Meisel agreed.
The Council discussed the fact that even though the taxes to the school district appears to go
down on the Truth in Taxation notices, the school bond referendum that was passed was not
included in that notice.
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MOUND COMMIT1EE OF THE WHOLE MINUTES- NOVEMBER 16, 1999
The Council discussed all the capital outlay items.
Councilmember Brown questioned why there are so many lines in the budget for phones. He
stated they supposedly have been paid for out of this year's budget. Even still, the phones
are a minimal amount to what the budget needs to be cut.
Councilmember Hanus stated he would like to see it noted in the budget when transfers occur
from the general fund. He stated he would also prefer to have a positive balance rather than
a negative balance shown in any given account of the budget. The Finance Director stated
he could certainly have notations at the bottom of pages when transfers are made from the
general fund. The Finance Director stated the budget summary for the City of Mound is
actually quite detailed in comparison to other cities.
There was discussion on transfers and how they would be handled in the proposed budget.
Councilmember Weycker suggested instead of presenting an approved line, have an adjusted
line listed in the proposed budget. She suggested having an asterisk to show where the
transfers are being made. The Finance Director stated this would be a possible solution in
making the proposed budget more easily understood.
The Finance Director stated overall the City of Mound will probably come in under budget
for 1999. He suggested doing an amended budget after the audit has been presented in the
spring of 2000. Mayor Meisel agreed and stated the overages would go into the general
fund, and the budget could then be amended after the audit.
The Council discussed what would be a comfortable fund balance in the General Fund. It
would range from 29 % to 35 %.
Councilmember Hanus asked about how much more revenue came in last year than what was
projected. The Finance Director stated it was about 10 percent higher which includes monies
from state aid for police and street, city taxes, fees and building permits and insurance
rebates.
There was discussion amongst the members what percentage would be an appropriate levy
increase for the City of Mound.
Councilmember Brown stated projects in the City of Mound are being put on hold because of
the small amount of levy increase over the past years.
Councilmember Hanus stated the net levy average change for the past five years has been
2.3.
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MOUND COMMITTEE OF THE WHOLE MINUTES - NOVEMBER 16, 1999
Councilmember Brown stated, and others agreed, there is a need to increase the levy because
it appears the city is not being maintained with the revenue it is generating or will generate
in the future.
The Council suggested a number of items that could be cut from the Capital Outlay.
The Council asked that the the Finance Manager and Acting City Manager give a
comparative cost of the old radio system and the new phone/radio sytem.
Councilmember Brown asked if an 8 percent increase was agreed by Councilmembers, how
much of the budget would have to be cut. The Finance Director stated approximately
$86,000 would need to be cut.
The Council asked that the Department Heads prioritize their needs and determine what could
be cut from their budgets to reach the 8 % increase.
Councilmember Brown proposed the elimination of one one squad car out of the three
requested for the 2000 budget thus allowing those funds to be put back into the general fund.
Then in the spring when the budget is amended after the audit, the department could be
allowed to purchase the third squad car at that time. This proposal was agreed on by the
Councilmembers present.
The consensus of the members was that the monies collected from the depot rental should go
back into the maintenance of the depot.
Mayor Meisel stated, and the Councilmembers present agreed, the 8 percent increase seemed
like a palatable number to work with. It was agreed that the proposed 2000 budget could be
amended in the spring if the departments come in under budget for 1999 and some of the
cuts made now could be reinstated at that time.
Councilmember Weycker stated she is concerned about having only a 29 percent fund
balance. Mayor Meisel stated the liquor store funds could assist with this loss of fund
balance.
1.1 DISCUSSION.
Councilmember Hanus has been approached by citizens of Mound who would like to know
how Mayor Meisel can vote on the visions project when she will have a personal gain from
the visions project because of the property she owns in that area.
Mayor Meisel stated she has property in the City of Mound that she has been paying taxes pn
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MOUND COMMITTEE OF THE WHOLE MINUTES- NOVEMBER 16, 1999
for a number of years. She stated she has signed a disclosure statement at the be§inning of
her term setting forth her position with the visions project. She also stated if there is any
chance of problems occurring in the future because of her vote, she will choose step down
and not vote. Mayor Meisel stated Councilmember Hanus should feel free to have a copy of
the disclosure statement she has signed regarding the visions project and she will gladly
keep thise up-to-date. Mayor Meisel will again approach the City Attorney regarding this
information presented tonight.
Councilmember Hanus stated he presented this information to Mayor Meisel because he
would like to reduce the City Councils' exposure and would like to keep the integrity of the
Council strong.
INFORMATION ITEMS.
No information was distributed.
MOTION by Brown, seconded by Ahrens, to adjourn at 11:44 P.M. The vote
was unanimously in favor. Motion carried.
Francene C. Clark, Acting City Manager
Attest: Council Secretary
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