SPRINGFIELD BUDGET WORKSHOP

AUGUST 31, 2016

5:30 PM

The Aug. 31, 2016 budget workshop was called to order by Mayor Mark Brown at 5:30 PM. Those present include Brown, Theresa Beckman, Lowell Helget, Chett Bisel, City Attorney Paul Muske, City Manager Matt Skaret and City Clerk Amy Vogel. Absent was Mike Rothmeier. Others present include Jill Riederer, Scott Johnson, Tim Gramentz, Charlie Baumann, John Clarey with Gold Cross, Doug Cook, John Nicholson and Linda Roiger.

Motion by Beckman, second by Bisel to adopt the agenda. All ayes.

Skaret noted that he had asked two consultants for quotes for their services in putting up a new slide and making other pool area improvements. He did not hear from MC&R likely because we are out of their area. USAquatics quoted $15,400 that covers the time from demolition of the old slide to installation of the new slide. This was not included in the 2016 or 2017 budgets. Motion by Helget, second by Beckman to accept this proposal for aquatic services. All ayes.

The council agreed to have the pool committee meet with USAquatics to make recommendations to the council.

Skaret stated that Dale Knutson was interviewed by the personnel committee for the Street Supt vacancy. They have recommended offering the position to him, noting that it would be hard to bring anyone in from the outside. They recommended placing him at step C for $19.66, giving him a COLA at the first of the year and then after satisfactory performance moving him to step D. Hiring would be effective Oct. 1, 2016. Motion by Helget, second by Beckman to hire Knutson effective Oct 1, 2016 for the street dept supt position at step C $19.66. All ayes.

The council discussed the vacancy left by Knutson taking this new position. The possible start date would be Nov. 1. The seasonal person is available to work in Oct due to the vacancy. Motion by Bisel, second by Helget to advertise for the position with wages dependent on qualifications. All ayes.

Motion by Bisel, second by Beckman to appoint Dillon Schultz to the vacant community facilities board position. All ayes.

Skaret recapped the proposed 2017 levy which includes a 4.57% increase over 2016. Expenses, proposed to increase by 1.8%, include 2% COLA along with necessary step increases for non-union employees, 3% COLA for union, and 7.5% increase on health insurance. The council will have to make a decision by Oct 15 on the 2017 health insurance plan.

There are major pool improvements, estimated at $42,000, included in the 410 fund. Other pool maintenance items are included in the general fund. Nothing was budgeted for the Bittler building because there are no official plans. The street dept wages were adjusted to reflect new employees, which resulted in a savings. The 411 fund for capital equipment replacement includes a new snow plow, street pickup, handheld radios, city hall copier and computers, and police squad all amounting to about $165,000.

Skaret noted that Northland Securities is finishing up the capital improvement projects report for streets and infrastructure and they would like to present this either at the Oct council meeting or a special meeting. The council agreed to a special meeting.

Cook introduced John Clarey with Gold Cross who is taking over Tom Fennell’s duties. He also explained that they are switching out primary rigs every couple of months due to the LUCAS device the dept was granted earlier this year. As for rig replacement, it is not ready to be upgraded at this time. The last one was extended a few years and this one will likely be the same. They are proposing to raise the base fee from $750 to $775 with no changes to the loaded mile charge. Gold Cross is proposing a 3% increase to their contract services.

Roiger explained that most of the increase to the library budget was due to wage and health insurance increases. She commented that it is likely that a CD will have to be cashed in next year to cover expenses. Brown County did increase their allotment by $750/library. They will work for another increase next year. In 2016, a furnace and water heater were replaced. She noted that the HVAC system is original and the air exchanger is not working as efficiently as it should. One furnace and 3 a/c’s have been replaced so far(there are 4 of each).

Riederer explained the community center budget. There has been discussion on increasing the camping rate. This decision would have to be made before Jan 1 as that is when reservations start. The proposed general fund transfer is $10,000, down $5,000 from 2016. The HVAC system should be completed soon and they are working on screening for the different units. It was noted that BAM expenses only totaled $2,500 of which $5,000 was budgeted. There were about 300 participants.

Helget noted that the Riverside Park bathroom needs some improvements.

The fire dept budget includes funds to fix the leaking roof. It is a rubber roof and they have not been able to get it to stop. There are 2 firemen being replaced so there may be a need to purchase new turnout gear if the old gear doesn’t fit at a cost of about $2,000/person. The State does provide $200/person for training each year. They are looking into on-line training to save travel time for these new firemen. It was also mentioned that a township fire meeting was held to discuss new section rates. The contract will be on the September council agenda. There was also discussion on increasing the fire call rate from $750/call. Sleepy Eye is at $750/call and $300/hr after the first hour. The proposed rates will have to be included in the township fire contract. They agreed on $750/call and $150/hr to start with. They also discussed charging for in-town fires but no decision was made. Vehicles needing replacement in the next 5 years include the 1986 tanker (#4) and a grass fire rig. It was agreed to work on the capital equipment CIP before the Sept meeting.

Nicholson recapped the police dept budget. A new squad is planned for next year. The grant for the in-squad computers was fulfilled this year. The animal shelter budget was increased. Someone would have to go in for DARE training for 2 weeks in January to get that program going again.

Other budget items include a new mower for the Rec Complex and refunding the bonds for the rental units to lower the interest rate. The council agreed that the next street project would likely not be done until 2018.

Muske reported that the Roiger committee met yesterday and allocated $100,000 for trails, $100,000 for replacing the pool slide, and $150,000 for a shelter at the trap range. There is about $75,000 remaining that has not been spoken for.

The council discussed the Cadillac tax, which will be implemented in 2020, as it relates to health insurance. There are different options available such as raising deductibles, deleting cafeteria plans, and offering multiple plans.

It was noted that the security systems were not included in the clerk’s budget. Council members believe this should be included.

The street budget includes $45,000 for sealcoating and $7,500 for crack sealing. These projects will prolong the life of the streets. The council asked if there was anything that could be done on Central where the tar hits the concrete because it pulls vehicles to the side.

Motion by Helget, second by Beckman to adopt Res. #16-083101 approving the 2016 levy collectible in 2017 and setting the truth-in-taxation for Dec. 20, 2016 at 6:00 PM at the Springfield Area Community Center. All ayes.

Motion by Beckman, second by Bisel to adjourn at 8:30 PM. All ayes.

Amy A. Vogel, City Clerk