08-25-09 Special Budget Meeting
August 25, 2009
A special meeting of the Scandia City Council was held on the above date. Mayor Dennis
Seefeldt called the meeting to order at 7:00 p.m. The following were present: Council members
Pete Crum, Connie Amos, Dolores Peterson, John Lindell, and Mayor Dennis Seefeldt. Staff:
Administrator Anne Hurlburt, Treasurer Colleen Firkus, Fire Chief Jim Finnegan, Assistant Fire,
Assistant Fire Chief Mike Hinz, Assistant Fire Chief Bill Havener, Fire Relief Association
President Jeff Biebl and Fire Relief Treasurer Ernie Yoch.
The first order of business was to discuss the 2009 and 2010 municipal contribution to the
Scandia Fire Relief Association. The 2009 minimum municipal contribution is $44,546. The
City’s budget includes a $75,000 contribution. Mayor Seefeldt suggested a $50,000 municipal
contribution this year and leave the budget at $75,000 for 2010. This would give the fire
department and city council time to consider options for funding the increasing liability of the
fire relief association. Lindell, seconded by Amos, moved to approve a 2009 municipal
contribution of $55,000. The motion passed unanimously.
The next item discussed was the proposed replacement of Fire Rescue #5179 (CIP Project F-
010.) To get a 2010 truck chassis at 2009 prices, it needs to be ordered by August 31, 2009. The
rest of the truck would not have to be paid for until delivered. While the build-out of the truck
will be subject to a public bidding process, the City could purchase the chassis separately, and
secure the best pricing through the state contract. The truck chassis could be purchased now out
of the Equipment Replacement Fund now, which would be reimbursed next year when
Equipment Certificates were issued to pay the entire cost. Lindell, seconded by Crum, moved
to approve placing an order for the chassis by August 31, 2009. The motion passed
unanimously.
Administrator Hurlburt then gave an overview of the 2010 budget. It was noted that the health
insurance rates are expected to increase greatly due to the City’s poor experience in the past year.
The council may have to adjust the health plan details and contributions to Health Savings
Account. It was also noted that the proposed General Fund Budget will be down 1.99% for 2010.
Each department’s budget was reviewed by council. The Fire budget reflects an increase in
spending for wages and salaries, which appear to have been significantly under-budgeted for
2009. Some of the increased expense has been due to several large events. Some of the 2009 cost
(assisting the DNR) is expected to be reimbursed. The council needs to adopt a fee schedule so
the Fire dept. can bill the railroad for fires on its property or started by its trains.
In the Administration budget Lindell asked about the $25,500 for the audit. It was noted that the
amount was set as part of a three year contract. The staff and council were pleased with their
work. No changes were made from 2009 to 2010 in the Council budget. The Elections budget is
the same as the 2008 budget, the last election year. The biggest change to the Planning &
Building budget was the cost for the EIS and $30,000 for zoning ordinance updates. The Police
budget is based on a proposed contract from Washington County. The actual cost may change
slightly when the union contract is settled, but not before the levy deadline of September 15,
2009. In the Public Works budget it was noted that Personal Services were down as we now use
August 25, 2009
Scandia City Council
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temporary employees for snowplowing and mowing grass. The previous year had a budget for a
three-fifth time employee, who has since retired.
Mayor Seefeldt felt the Uptown Sewer expense to revenue ratio needs to be reviewed as the City
has taken on the some substantial expenses that were not charged to users of the system. It was
suggested that it may need to be changed to an Enterprise Fund. The Parks budget shows an
increase in the pay and hours of the temporary summer help. The pay for the skating rink
attendants was reduced to minimum wage of $7.25. The Community Center budget includes
$10,000 to get the 23 year old floor in the hall replaced.
The Capital Improvement budget Revenue page needs to be reprinted to show the correct
revenue of $25,000 of taxes. The only expense is a study of City meeting and office space needs.
The Parks Capital Improvement budget includes projects at Lilleskogen and Wind in the
Pines. However, lack of revenue in park dedication fees will limit the amount of work that can be
done. The Equipment Replacement budget reflects doubling the 2009 revenue from transfers
from operating budgets to $80,000. The 201 Sewer budget is expected to increase reserves in
2009 and 2010, which have been deemed inadequate by the State Auditor. No changes will be
made to user fees for 2010.
The maximum total levy for 2010 is estimated to be $1,928,647. The maximum levy will need to
be set by September 15. After that, the levy can be adjusted downwards, but not be increased.
Lindell felt it would be valuable to compare the 2009 Estimated Expenses to the 2010 Proposed
Budget, instead of the 2009 Budget, since it appears that the City may under-spend the 2009
budget by $200,000. Staff indicated the 2009 Estimated Expenses are an educated guess and that
if the budget were under-spent, and then the city would be able to add to its reserves, which are
less than adequate. Lindell asked why the city would go back and recoup the lost LGA and
MVHC in the 2010 levy, and that the City could start with a total revenue number and work out
what it can spend from that number. Mayor Seefeldt said he hoped we could build up reserves
this year and next year by being conservative and under-spending the budgets.
The council agreed to certify the maximum levy at the September 1, 2009 meeting and not have
a special meeting on September 8. They also agreed to set the public meeting on budget and tax
levy for December 1 at 6:30 p.m.
Peterson, seconded by Amos, moved to adjourn the meeting.
Respectfully submitted,
Colleen Firkus
Treasurer