08-11-09 CM Minutes
Council/Manager Meeting Minutes
August 11, 2009
Present: Mayor Loomis and Council Members Freiberg, Pentel, Scanlon and Shaffer,
City Manager Tom Burt, Finance Director Sue Virnig, Public Works Director Jeannine
Clancy, Police Chief Stacy Altonen, and Assistant City Manager Jeanne Andre.
The meeting began at 6:33 pm in the Council Conference Room.
2008 Comprehensive Annual Financial Report
Bill Lauer of the auditing firm of Malloy, Montague, Karnowski, Radosevich and
Company, presented the 2008 Comprehensive Annual Financial Report and
Management Report. He noted that the City's report of its financial position has an
unqualified, "clean" opinion. He explained that the audit includes a test of the financial
information provided by staff, review of internal controls, and check for compliance with
Minnesota laws.
Mr. Lauer compared various categories of the City's financial condition to previous
years and reviewed highlights from the Management Report. Two major findings are 1)
there is limited segregation of duties in Administrative Services, and 2) testing
determined the need for a correction of net book value of a capital asset. He noted that
the ratio of fund balance to the annual budget has decreased from 75 per cent in 2003
to 58.5 percent in 2008. No formal acceptance of the Annual Financial Report is
required other than a presentation as occurred at this meeting.
Biennial 2010-2011 Proposed General Fund Budget
The Council reviewed the recommended budget for Police, Public Works and the
Building Fund as well as the 2010-2011 Capital Improvement projects for parks,
buildings and equipment. The Council asked questions and staff informed Council on
some significant budget issues.
There have been ongoing discussions with Hennepin County about the possibility of
taking over dispatch operations in 2011, but there has been no determination on
whether the County could take on one or more cities and if there would be a charge to
do so. Tom Burt noted that he would like to see a seventh sergeant position created so
that there would be one more shift sergeant and all four shifts would have a trained
supervisor with a sergeant available for relief. He proposed to promote an officer to
sergeant, leaving an officer corps of 21. An ideal shift would be five people, including a
working sergeant on each shift. Tom Burt will amend the budget papers to reflect his
proposed change, which is revenue neutral in the first few years. As of April of 2009 the
Minnesota State Patrol is handling MNPass enforcement.
The Council further discussed proposed cuts in Contractual Services with Home Free
Shelter for 2010 and 2011. Stacy Altonen reported that the services provided to Home
Free are provided to people in other cities that do not make separate donations to
Home Free. These services are also available through Hennepin County Legal Aid. The
Council requested additional information about the Home Free budget and other
sources of revenue. The Council decided not to increase the recommended levy, but to
further consider allocations for Other Contractual Services, in the Council's budget. Tom
Council/Manager Meeting Minutes
August 11, 2009 - Page 2
Burt noted that staff has identified more specific responsibilities to include in the
contract with Home Free if the Council decides to continue this agreement.
The Council asked for more information regarding playground equipment and ADA
upgrades under consideration in the next two to three years. Some Council members
expressed interest in delaying this work in order to further reduce the budget. Staff will
provide information for Council review so that a decision can be made during the formal
review of the Capital Improvement Program later this fall.
The meeting adjourned at 8:40 pm.
Jeanne Andre
Assistant City Manager