11-24-2003 CC MIN - Laserfiche WebLink

Home Browse Search

City Council Minutes Page 3 November 24, 2003 ............................. Garbage Collection/Recycling Program Mr. Klaers stated that the major change in the garbage collection/recycling budget for 2004 is the customer rate increase that was approved in October 2003. Mr. Klaers stated that in the past few years the city has subsidized customer rates in order to bring down the fund balance because the fund balance got too high due to a refund from the state and a county grant. Mr. Klaers noted that it is appropriate for the garbage enterprise to operate on a break-even basis and the customer rate increase should accomplish this. Mr. Klaers stated that the major activity in this program for 2004 will be the garbage hauler contract renewal. He stated that it is possible that the city will go out for competitive bids as staff is not entirely pleased with the customer service performance of one of the haulers. Mr. Klaers noted that the length of the new contract and the hauler fees are the two key issues with a new contract. Mr. Klaers indicated that the 2004 garbage collection budget is up 13.8% from the 2002 actual expenditures which is an approximate 6.6% increase per year for two years. Mr. Klaers stated that this is reasonable based on the residential growth the city has recently experienced. Mr. Klaers also stated that the city contracts with Elk River Municipal Utilities for the garbage billing. Councilmember Dietz questioned how the fee that the city pays for this service is determined. Finance Director Lori Johnson stated that the city pays a portion of a phone line, a portion of a staff person's time, and postage for any bill that the Utilities sends out for which they have not provided services. MOVED BY COUNCILMEMBER MOTIN AND SECONDED BY COUNCILMEMBER DIETZ TO APPROVE THE GARBAGE COLLECTION/RECYCLING PROGRAM ENTERPRISE FUND BUDGET FOR 2004. THE MOTION CARRIED 5-0. Municipal Liquor Store Enterprise Fund Mr. Klaers stated that the liquor store is a very important financial resource for the city. He stated that for the past ten years the city has transferred about $38,000 per year out of the liquor store fund to help finance the 1993 city hall project. He noted that in 2004 the city will transfer an additional $195,000 from the liquor store fund to help finance general municipal services. Mr. Klaers stated that in addition to the city hall debt payment and the contribution to the general fund, funds have recently been used from the municipal liquor store for two special projects. One project was helping with the costs associated with the gun range in the new public safety facility and the other was helping to fund the new ice rink floor in the Barn which is expected to be about a $220,000 contribution from the liquor store. Mr. Klaers noted that the liquor store makes about $350,000 annually so about one year's annual profit is being spent on these two projects. Mr. Klaers also noted that there is $8,000 in the 2004 budget to fund a feasibility study for a second liquor store. The last study was done in 2002 and the numbers were not as favorable as staff had anticipated. Options for the City Council include doing another study, foregoing a study and doing the project, or wait and consider another study or project in 2005 or 2006. It was noted that about 3% of the budget expenditures go for credit card processing charges. Councilmember Tveite questioned what percentage of sales are card sales. Liquor Store Manager Dave Potvin stated that on average about 1/3 of all sales are on some form