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HomeMy WebLinkAbout20220620 - CC Workshop MinutesHastings, Minnesota City Council Workshop June 20, 2022 The City Council of the City of Hastings, Minnesota met in a workshop on Monday, June 20, 2022 at 5:30 p.m. in the Community Room at the Hastings City Hall, 101 East 4th Street, Hastings, Minnesota. Members Present: Mayor Fasbender, Councilmembers Braucks, Folch, Fox, Leifeld, Lund, and Vaughan Staff Present: City Administrator Dan Wietecha Assistant City Administrator Kelly Murtaugh Finance Manager Chris Eitemiller Senior Accountant Ashley Bertrand Police Chief Dave Wilske Parks & Recreation Director Chris Jenkins Community Development Director John Hinzman Interim Public Works Director Ryan Stempski Mayor Fasbender called the workshop to order at 5:35 pm. Mayor Fasbender welcomed staff and invited Eitemiller to open the preliminary budget conversation for 2023. Eitemiller reviewed the schedule for budget preparation. He then presented the anticipated revenue and personnel, CIP/CEP, and other ongoing expense needs. Eitemiller reviewed the revenue considerations in terms of ongoing sources: • if same tax capacity as 2022, additional $537K (1% additional levy = $162,900); • no additional LGA • increasing building permit revenues • One-time sources of revenue: ARPA, general fund balance Eitemiller then reviewed the budgetary cost pressures: • Personnel—compensation study implementation, departmental staffing (Fire, Police, Building, Public Works) • Other ongoing expenses—inflationary impact for levy-supported funds, Community Investment Fund, other (legal, supply chain/long lead times, deferred maintenance, joint solid waste/recycling position) • CIP/CEP—current funding does not keep pace with needed projects, backlog carries forward • Trails & Parks plan—redevelopment and maintenance continue to lack consistent funding; Finance Committee met to consider options • Major projects—street/infrastructure projects (est. $4M/year), arena (est. $4M), County Road 46 (est. $3M), Trunk Highway 61 (est. $5M) Council discussion on cost of living adjustment (COLA) rates and the inflation rate. Council discussion on referendum option or local option sales/use tax. Discussion on the factors that influence the priority of the arena project. Discussion of the volume of projects that need attention may be influenced by putting some projects off as well as just the sheer number of assets that need to be maintained by the City. Wietecha posed questions seeking Council direction for the 2023 budget planning. What parameters does Council want to put on property tax rate/levy? Does Council have priority areas for staffing? Does Council want to increase debt to do both street project and arena project? Does Council wish to continue the Community Investment Fund? Other directions/priorities? Councilmember comments included continued support for Community Investment Fund due to the match that organizations brought to the table. Keep tennis court resurfacing on the table for discussion. Support for the work of the Arts Task Force (presenting to Council at the meeting following the workshop). Council discussion that it may need to go to the voters to fix the funding for parks system or some other way to make it a priority. There is a sense of a mixed level of support among voters for parks and/or arena project via referendum. The lead time on the arena project equipment purchases is now for a 2023 project. Council question about the pursuit of Federal grants for infrastructure projects. Stempski reported that it has been recommended that we go through a higher level of government—like Dakota County or MnDOT—to access federal funds for infrastructure. Councilmembers are interested in Fire staffing and learning what comes out of the Fire Study. There is Council interest to bring on a Community Services Officer to the Police Department, as well as a School Resource Officer or Investigator. Council discussion about raising the levy rate too much since 1% is $162,900. If we need to cover the costs in the future, it may take increases beyond what the residents can bear. ADJOURNMENT The workshop adjourned at 6:57 p.m. ____________________________ ______________________________ Mary D. Fasbender, Mayor Kelly Murtaugh, City Clerk