City Council Worksession

Watertown City Council Work Session Mayor Steve Washburn Deborah Everson Lindsay Guetzkow Adam Pawelk Michael Walters 11/24/2020 - Minutes 1. Call To Order And Roll Call Mayor Steve Washburn called the City Council work session called to order at 5:37 p.m. on November 24, 2020 in the council chambers of City Hall. Council Members present: Washburn (remotely from home), Michael Walters, Deborah Everson, Adam Pawelk, and Lindsay Guetzkow. City Staff present: City Administrator Shane Fineran, Fire Chief Ryan Schroeder (remotely from home), Public Utilities Superintendent (remotely from home), Public Services Superintendent Mike Dressel, and Clerk/Treasurer Lynn Tschudi. 2. New Business 2.I. Work Session #9 – Review Final Budget & Levy Impacts City Administrator Fineran introduced budget work session number nine to review the final budget and levy impacts for 2021. The final 2021 levy is set to be adopted on December 8, 2020. Fineran explained that the Public Facilities Authority will be meeting in December to amend the Intended Use Plan to likely move Watertown into the “fundable” range for low cost financing for the wastewater treatment facility expansion project. Fineran said the exact amounts are unknown as of now. Fineran is not expecting to receive grant funds to the extent that were originally planned for this project. He compared utility rate increases that could potentially fund this gap. Council Member Everson asked when the rate increase would need to occur. Fineran said it would need to be implemented in January. Council Member Guetzkow asked what the impact to the funds would be with the rate increase. City Administrator Fineran stated the exact amounts are not available off hand. Guetzkow asked what the chain of events were that caused the City to not meet the deadline for the appropriation of funds. Fineran said it was a matter of technicality of MPCA rules where a second review of the permit was triggered beyond the due date. Council Member Walters believes increasing utility rates at this time would not be beneficial for residents or the City. Mayor Washburn agreed with Walters. Due to the uncertainty of the economy and the wastewater project in general, Washburn would not want to increase the rates more than what was originally planned. Fineran spoke about the benefits of having a lobbyist on retainer and gave examples from other cities.  Council Member Walters believes increasing utility rates at this time would not be beneficial for residents or the City. Mayor Washburn agreed with Walters. Due to the uncertainty of the economy and the wastewater project in general, Washburn would not want to increase the rates more than what was originally planned. Fineran spoke about the benefits of having a lobbyist on retainer and gave examples from other cities. Council discussed the possibility of having a work session in 2021 to listen to lobbyist firms and what they have to offer. Fineran updated on the General Fund budget and levy. He said the health insurance rates were very minimal, however the deductibles increased. Fineran is proposing to increase the HSA contribution from $1,000 to $1,400 for each employee. This would still be an overall budget decrease for health insurance from 2020. Fineran is proposing a cost of living adjustment of 2% across all pay grades. He explained that the Fire Department is proposing a station crew model pay rate of $20 per hour for any fire fighter who is “on call” for these 6-hour medical only shifts. Fineran said $30,000 has been budgeted for staff development utilizing available fund balance. After all changes, the 2021 levy will increase by 1.21% to the average valued home (or a total of $16.31 annually). The City is projecting an unrestricted fund balance of 54%, where the requirement is only 50%. Walters and Everson expressed that they are pleased with the low increase in the levy. Guetzkow asked for details on the health insurance premiums. She asked Fire Chief Schroeder about the station crew pay and when they would receive the pay. Schroeder said fire fighters would receive the $20 per hour only when they are responding to a call. He hopes it will act as an incentive to fire fighters to sign up for additional on call medical only shifts. Walters asked if the City of Watertown is paying the going rate for fire fighters. Fineran stated he has not compared rates for a few years. Council Member Pawelk is in favor of the new pay structure for the fire department. He agrees with increasing the employee HSA contribution but notes that the City may not always be able to fund it at that level. 3. Adjournment Meeting adjourned at 6:23 p.m. 309 Lewis Avenue South; P.O. Box 279, Watertown, MN 55388