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Home My WebLink About2018-08-27 City Council Workshop Packet PLEASENOTESTARTTIME PLEASENOTESTARTTIME AGENDA MAPLEWOOD CITY COUNCIL MANAGER WORKSHOP 5:30P.M. Monday,August 27, 2018 City Hall, Council Chambers A.CALL TO ORDER B.ROLL CALL C.APPROVAL OF AGENDA D.UNFINISHED BUSINESS 1.2019 Budget Overview E.NEW BUSINESS 1.Intent to Close Meeting per Minnesota Statute §13D.03(b) to Consider Strategies for Labor Negotiations for Collective Bargaining Agreements withTerms Ending December 31, 2018 F.ADJOURNMENT RULES OF CIVILITY FOR THE CITY COUNCIL, BOARDS, COMMISSIONS AND OUR COMMUNITY Following are rules of civility the City of Maplewood expects of everyone appearing at Council Meetings - elected officials, staff and citizens. It is hoped that by following these simple rules, everyone’s opinions can be heard and understood in a reasonable manner. We appreciate the fact that when appearing at Council meetings, it is understood that everyone will follow these principles: Speak only for yourself, not for other council members or citizens -unless specifically tasked by your colleagues to speak for the group or for citizens in the form of a petition. Show respect during comments and/or discussions, listen actively and do not interrupt or talk amongst each other. Be respectful of the process, keeping order and decorum. Do not be critical of council members, staff or others in public. Be respectful of each other’s time keeping remarks brief, to the point and non-repetitive. THIS PAGE IS INTENTIONALLY LEFT BLANK 5Њ CITY COUNCIL WORKSHOP STAFF REPORT Meeting Date August 27, 2018 REPORT TO:Melinda Coleman, City Manager REPORT FROM: Ellen Paulseth, Finance Director PRESENTER: Ellen Paulseth, Finance Director City Manager’s Budget Workshop #2 AGENDA ITEM: Action Requested: MotionDiscussion Public Hearing Form of Action:Resolution Ordinance Contract/Agreement Proclamation Policy Issue: The City is required to file a preliminary property tax levy for fiscal year 2019 with Ramsey County in September of 2018. The final 2019 tax levy must be adopted in December of 2018. The City Council may decrease the proposed tax levy prior to final adoption, but may not increasethe proposed levy after it is filed with the County. Recommended Action: No action is required. Staff requests direction on the policy decisions outlined in the presentation and attachments. Fiscal Impact: Is There a Fiscal Impact? No Yes, the true or estimated cost is $22,109,600 Financing source(s): Adopted Budget Budget Modification New Revenue Source Use of Reserves Other: n/a Strategic Plan Relevance: Financial SustainabilityIntegrated CommunicationTargeted Redevelopment Operational EffectivenessCommunity InclusivenessInfrastructure & Asset Mgmt. The budget impacts all areas of the strategic planand sets spending policy for the next year. Background The City Council reviewed a preliminary 2019 budget proposal on August 13, 201. The preliminary proposal called for a 2.5% city tax levy increase and outlined requests for new service levels that were not funded in the budget. Approximately $100,000 will bring the levy increase to 3%. Unfunded services include two new police officers, a rental housing inspection program, moving 20% of Communications expenses to the General Fund, an increase in fund balance and elimination of alarm fees. Workshop Packet Page Number 1 of 27 5Њ The City Manager’s new proposal includes the following changes from the first proposal to bring the levy to a 3% increase: Revenues Expenditures Increase levy to 3% $105,640 Two officers hired in October $ 45,000 Adjust health insurance 51,552 Rental housing inspectors 30,000 Adjust police salaries 177,808 10% Communications to General 35,000 Allowance for tax petitions 25,000 Add to fund balance 200,000 Total Adjustments $335,000 Total Adjustments $335,000 The increase in the levy to 3% is shown below: Final 2018 Preliminary$ Increase% Increase Levy Fund2019 Levy(Decrease)(Decrease) General Fund$ 16,138,91015,351,530$ 787,380$5.1% Debt Service Funds4,894,070 4,945,690 51,6201.1% Recreation Fund200,000 200,000 0.0%- EDA Fund100,000 100,000 0.0%- Capital Project Funds420,000 525,000 105,00025.0% Ambulance Fund300,000 (300,000)--100.0% Community Center Fund200,000 200,000 0.0%- Total Levy$ 22,109,60021,465,600$ 644,000$3.0% On 8/15/2018, Ramsey County provided the proposed market values and tax capacities for taxes payable in 2019. This allows the City Council to analyze preliminary property tax impacts before adopting the preliminary levy. The median home value in Maplewood increased 6.2% for taxes payable in 2019 to $222,500. This, coupled with the loss of fiscal disparities and changes in the homestead exclusion benefit, has resulted in a shift of taxes to residential property owners. The owner of a median value home will realize an increase of 3.7%, or approximately $33 per year, with the City’s preliminary levy increase of 3.0%. Almost half of this is due to property tax shifts. The City’s proposed tax levy will have the following impacts on various valued homes: Attachments 1. PowerPoint Workshop Packet Page Number 2 of 27 D1, Attachment 1 August 27, 2018 Budget Workshop #2 Workshop Packet Page Number 3 of 27 D1, Attachment 1 ••••• Workshop Packet Page Number 4 of 27 D1, Attachment 1 ••••••• Workshop Packet Page Number 5 of 27 D1, Attachment 1 ••••• ••• Workshop Packet Page Number 6 of 27 D1, Attachment 1 •• Workshop Packet Page Number 7 of 27 D1, Attachment 1 Workshop Packet Page Number 8 of 27 D1, Attachment 1 $644,000 of Increase Workshop Packet Page Number 9 of 27 D1, Attachment 1 Workshop Packet Page Number 10 of 27 D1, Attachment 1 Џ͵ЋіΜ ǝğƌǒĻ ƩĻƭźķĻƓƷźğƌ źƓ year per ΛźƓĭƩĻğƭĻ $33 ağƦƌĻǞƚƚķ źƓ IƚƒĻ ğƌǒĻ aĻķźğƓ Workshop Packet Page Number 11 of 27 D1, Attachment 1 Workshop Packet Page Number 12 of 27 D1, Attachment 1 3.0% 3.5% 5.0% 4.0% 2.5% 2.0%0.0% Workshop Packet Page Number 13 of 27 D1, Attachment 1 Workshop Packet Page Number 14 of 27 D1, Attachment 1 Workshop Packet Page Number 15 of 27 D1, Attachment 1 Workshop Packet Page Number 16 of 27 D1, Attachment 1 Workshop Packet Page Number 17 of 27 D1, Attachment 1 Workshop Packet Page Number 18 of 27 D1, Attachment 1 •••• • Workshop Packet Page Number 19 of 27 D1, Attachment 1 Workshop Packet Page Number 20 of 27 D1, Attachment 1 Funds Utility in expenditures of 5% to 8% current the from charges Reduce Goal: Workshop Packet Page Number 21 of 27 D1, Attachment 1 ••••• Workshop Packet Page Number 22 of 27 D1, Attachment 1 Workshop Packet Page Number 23 of 27 D1, Attachment 1 ••• Workshop Packet Page Number 24 of 27 D1, Attachment 1 Workshop Packet Page Number 25 of 27 CITY COUNCIL WORKSHOPSTAFF REPORT Meeting Date August 27, 2018 REPORT TO: Melinda Coleman, City Manager REPORT FROM:Mike Funk, Assistant City Manager/HR Director PRESENTER: Mike Funk, Assistant City Manager/HR Director AGENDA ITEM:Intentto Close Meeting per Minnesota Statute §13D.03(b) to Consider Strategies for Labor Negotiations for Collective Bargaining Agreements with Terms Ending December 31, 2018. Action Requested:MotionDiscussionPublic Hearing Form of Action:ResolutionOrdinanceContract/AgreementProclamation Policy Issue: The term for all seven collective bargaining agreements willexpire on December 31, 2018. The purpose of the closed session is to discuss negotiation strategies and to provide direction to staff regarding the upcoming negotiation of union contracts. Recommended Action: No formal action is recommended. However, staff seeks direction regarding compensation and benefits offerings, as well as other terms and conditions for employment. Before the meeting is closed, the council must state on the record the specific grounds permitting the meeting to be closed and describe the subject to be discussed. Therefore, it is recommended the City Council introduce the following motion: Pursuant to Minnesota Statutes Section 13D.03,Subd. (b), I hereby move to close the regular meeting and go into closed session to discuss strategies, analyze fiscal considerations, and to provide direction to staff on developing negotiation positions for all seven (7) bargaining units. Fiscal Impact: Is There a Fiscal Impact?NoYes, the true or estimated cost isN/A Financing source(s): Adopted BudgetBudget ModificationNew Revenue Source Use of Reserves Other:2019 Budget Strategic Plan Relevance: Financial SustainabilityIntegrated CommunicationTargeted Redevelopment Operational EffectivenessCommunity InclusivenessInfrastructure & Asset Mgmt. Creating an effective negotiation strategy aligns with the goal of financial sustainability as employee compensation and benefits make up a significant portion of the operating budget. Yet, it is important Workshop Packet Page Number 26 of 27 for the city to remain competitive with external markets in order to retain and attract employees. Having a strong workforce leads to operational effectiveness. Background There are approximately 170 benefit earning employees that belong to one (1) of seven (7) collective bargaining units. Each bargaining unit has a collective bargaining agreement (CBA), or more commonly referred to as a ‘union contract’, with the City of Maplewood. Each of these seven (7) contracts will terminate on December 31, 2018. The following is a list of the bargaining units: Law Enforcement Labor Services (LELS), Local 173, Police Sergeants Law Enforcement Labor Services (LELS), Local 153, Police Officers Maplewood Confidential & Supervisory Group (MCSA) Minnesota AFSCME Council 5, Local 2725 The Metro Supervisory Group (MSA) International Association of Fire Fighters, Local 4470, Fire Fighters International Association of Fire Fighters, Local 4470, Fire Officers There are seven exceptions to the open meeting law that authorize the closure of meetings to the public. Minnesota Statutes Section 13D.03allows the meeting to be closed to consider strategies for labor negotiations, including negotiation strategies or development or discussion of labor- negotiation proposals. Attachments None. Information will be provided during the closed session. Workshop Packet Page Number 27 of 27