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HomeMy WebLinkAboutCCMin_03Sep10CITY OF FALCON HEIGHTS COUNCIL MINUTES September 10, 2003 Mayor Gehrz convened the regular City Council meeting at 7:00 PM. PRESENT: Mayor Sue Gehrz, Council members Laura Kuettel, Robert Lamb, Peter Lindstrom and Richard Talbot Also present: City Administrator Heather Worthington and Deputy Clerk Mary Shea Kodluboy COMMUNITY FORUM: There was no commentary from the audience. PRESENTATION: Northwest Youth and Family Services Ms. Kay Andrews, Executive Director of Northwest Youth and Family Services, said that she has been involved with the organization since its beginning 28 years ago. Their mission of the organization is to prepare youth and family for productive lives. Their service area is the northwest suburbs of Ramsey County and Saint Anthony in Hennepin County. She introduced Mr. Jerry Hermodka, Community Services Manager, and he gave a brief overview of their main areas of focus: Mental health counseling, diversion, youth run business, senior chore services and community social work. Council member Lindstrom said there have been reductions in funding support from the counties and he asked about the status of corporate and individual support. Ms. Andrews said that corporate support is down because of the economy, but individual support is up a little bit. Council member Lamb said that if someone wants to learn more about the organization, they can call 651-486-3808 or contact City Hall. Administrator Worthington said there is information on the City’s web site also. Council member Lindstrom said that he has been on the Board of Directors for the last couple of years and this year he serves as treasurer. Fifty percent of the Board’s time is spent on fundraising. It is a great organization. Ms. Andrews said that they are very solvent financially. Council member Kuettel said that she served as a Board member for several years and is very supportive of the organization. Falcon Heights is not an island. People are being served around us. The sooner the children are helped, the better for all of the surrounding communities. People need to see the big picture. Intervention is the best approach. Council member Lindstrom asked for the profile of someone who would qualify for the senior chores program. Ms. Williams said they need to be at least 60 years of age or disabled and living in a residence where they need assistance or some sort of chore service in order to stay in their home. Kids do the chores, i.e. raking leaves, shoveling snow, cleaning windows. There are also a couple of adults who assist with chores. There are no income eligibility restrictions. FALCON HEIGHTS CITY COUNCIL MINUTES -2- September 10, 2003 APPROVAL OF MINUTES: The Council minutes dated August 27, 2003 were unanimously approved as submitted. PUBLIC HEARINGS: None Scheduled CONSENT AGENDA: Mayor Gehrz said that she was seeking Council approval to submit a grant application to the State to fund a third CERT training program. Earlier this year, the City received grant funds to do two CERT training programs. The first one has been completed and the second one will begin in late fall. Kuettel moved that the Consent Agenda, outlined below, be approved as submitted. The motion was unanimously approved. General Disbursements through September 5, 2003 in the Amount of: $ 38,201.67 Payroll (8/15/03-8/31/03) in the Amount of: $ 12,299.93 Joint Powers Agreement Among Members of the Ramsey County Geographic Information Systems (GIS) Users Authorization to Prepare and Submit a Grant Application to the Minnesota State Department of Emergency Management for CERT Training Funds for 2004 POLICY AGENDA: Council member Lamb asked if Policy Item H4 could be discussed first, because it has a direct bearing on the Council’s discussions and decisions regarding Policy Items H1 and H2. The general consensus of the Council was to proceed with discussion of Policy Item H4, per his request. Reserve Policy Council member Lamb said that he is listed as the sponsor of this item, but it was discussed extensively in Council workshops and could easily be co-sponsored by the City Council, City Administrator or Finance Director. The Policy that is being proposed will determine what the City Council does with the money in the bank. FALCON HEIGHTS CITY COUNCIL MINUTES -3- September 10, 2003 Reserve Policy (continued) Council member Lamb proceeded to read the following statement: “This Policy, in reality, is the culmination of an intensive assessment of where we are, and where we want to go, as a City. We have thoroughly reviewed our current condition, our foreseeable needs, and our available resources. The level and quality of the services provided by the City is high. Our infrastructure, with the completion of Sheldon, is in good shape. We have retired some debt and what remains is clearly manageable. Property values are high, and with the completion of the Southeast Corner development, should continue to rise. Overall, the City is in good to excellent condition. We have also examined our financial position and the fiscal policies that guide us. Adopting this Policy will allow us to maintain City services and the City infrastructure at at least the current levels. It will assure members of this community that tax dollars are well managed, that resources are adequate to meet future needs, and that, as proper stewards, we are holding no more of the taxpayer dollar than is necessary. It will provide guidance to the staff and to this Council as we establish budgets and spending priorities. And, it will allow us to lower the property tax levy and probably lower the individual property tax. The single greatest barrier to the adoption of this Policy, frankly, is the State of Minnesota. The State, which, at times, has a great deal of difficulty managing its own affairs, has chosen, in its wisdom, to manage ours. Periodically, the State has ruled that property tax levies may only be raised if the levy was raised the previous year. This poorly conceived State mandate may encourage local governments to raise levies, not because they have immediate need for the monies, but to preserve the option to raise levies, if needed, in the future. This is wrong, and I urge Governor Pawlenty and his administration to repudiate this foolish notion and allow us to manage our own affairs as we were elected to do. By adopting this Policy, we are taking the risk that the State will punish us. Nonetheless, it is the right thing to do. We are also running the risk, by adopting this Policy, of appearing to endorse Governor Pawlenty’s stance on State aid to cities, counties and school districts. Local units of government are the primary providers of services. Cutting local aid has the effect of hurting the most vulnerable, the young, the old, and those most in need. At the same time, it puts tremendous upward pressure on property taxes, which are among the most regressive of all taxes. Rising property taxes could force the elderly and those on fixed incomes out of their homes. I urge Governor Pawlenty to revise his stance on local government aid, on the provision of services at the local level, and on this harmful reliance on property tax. That being said, adoption of this Policy is the right thing for us to do. It will become an integral piece of the management practices that, in part, have made Falcon Heights a premier place to live.” FALCON HEIGHTS CITY COUNCIL MINUTES -4- September 10, 2003 Reserve Policy (continued) Mayor Gehrz said the City Council worked hard on this in the budget workshops. Council member Talbot said that people should know they have a good City Council here. He is enormously proud to be a member of this team. The City is not going to cut any of its services. Council member Kuettel said that she is excited to be a part of this. It is very prudent to have this Policy in place. With this in place now, our City Council and future City Councils will have a much easier time getting budgets done. Council member Lindstrom said that this has reminded all of us of the fact that this is the taxpayers’ money. The City will hold no more of the taxpayers’ money than is necessary. This Policy will have a good effect for years to come. Mayor Gehrz said that when she says the City Council put a lot of work into this, they have. Initially, the Council set goals and developed action plans. They invited financial consultants from Ehlers and Associates to meet with them to talk about long term and short-term concerns and issues, and spending reserves. Administrator Worthington and Finance Director Olson worked on 5 and 10 year CIPs (Capital Improvement Plans). The City Council took all that information into consideration. Council member Lamb created the Reserve Policy and the result is what you heard tonight. She thanked him for his especially hard work. Council member Lamb said this was a good team effort. Lamb moved adoption of the Reserve Policy, as outlined below. The motion was unanimously approved. Purpose The City will maintain reserves sufficient to provide stable funding for City services, to provide working capital for maintaining infrastructure and capital assets, and to secure a high credit rating. Policies The City will hold no more of the taxpayers’ money than is necessary. The City will maintain specified Fund reserves at the level required by State statute (principally TIF and Bond Funds). FALCON HEIGHTS CITY COUNCIL MINUTES -5- September 10, 2003 Reserve Policy (continued) The City will strive to maintain a total reserve equal to 75% of the average of the previous five-year’s actual total expenditures, including capital projects. The reserve will be distributed among the Funds to meet cash flow needs and in anticipation of future expenditures. The City will address an excessive or a deficient reserve on a rolling four-year basis. Certification of the Preliminary Tax Levy for 2004 Mayor Gehrz said the City has lost $200,000 in LGA (local government aid) for 2003 and 2004. This means that the money lost will be taken from City reserves. With the budget that the City is looking at now, there may be $35,000 in additional expenditures, so the City Council is proposing to take $135,000 out of reserves for 2004. The State would allow the City to levy back about 60% of the LGA it is losing, or about $60,000 for 2004, but the City Council is opting not to do that. Council member Lamb said it is important to emphasize that services will be maintained at or above the level they are now. Council member Talbot said the City is benefiting from the foresight of earlier Councils with regard to finances. The City is not laying anyone off and services will be maintained at current levels or improved. The City Council is taking a good hard look at how much is right and prudent to hold in reserve. RESOLUTION 2003-16 Kuettel moved adoption of Resolution 2003-16 certifying the preliminary tax levy for 2004 in the amount of $874,338. The motion was unanimously approved. Resolution 03-17, Authorizing the City to Eliminate the 2004 Debt Levy on General Obligation Debt Administrator Worthington explained that each year, the City is required to pass a resolution stating its intention to either levy for the general obligation debt service, or eliminate its ability to levy for the debt. Falcon Heights has never levied for the general obligation debt, and staff is once again recommending that the Council pass a resolution eliminating the 2004 debt levy on general obligation debt. Council member Lindstrom said the City is doing this because it has sufficient funds on hand. FALCON HEIGHTS CITY COUNCIL MINUTES -6- September 10, 2003 Resolution 03-17, Authorizing the City to Eliminate the 2004 Debt Levy on General Obligation Debt (continued) RESOLUTION 2003-17 Talbot moved adoption of Resolution 2003-17, elimination of the 2004 debt levy on general obligation debt, in the amount of $127,564. The motion was unanimously approved. Approval of the Final Plat for the SE Corner Redevelopment Administrator Worthington said that in May, 2003, the City approved a preliminary plat for the SE Corner redevelopment site. With the property changing hands early last week and the project moving forward, it is now time for the Council to consider the final plat for the property. The plat, as presented, retains a corner of the site for Dino’s Gyros on a temporary basis. This is a formality in order for Sherman and Associates to close with their financing company, as an agreement in force between Dino’s and Sherman requires that the new Dino’s be built prior to the property being transferred to Sherman. As a result, Sherman is requesting that this final plat be approved now. An amended plat will be presented after Dino’s is completed and the land is transferred. Council member Lindstrom asked about the timeline for the SE Corner. Administrator Worthington said the developer will be going in there toward the end of this week. They will be securing the area with fencing and it is projected there will be about four weeks of asbestos abatement. Once demolition is completed, excavation will begin for the senior building’s parking ramp. Lindstrom moved approval of the final plat for the SE Corner-Falcon Heights Town Square. The motion was unanimously approved. REPORTS FROM COUNCIL MEMBERS: Council member Kuettel said the Parks Commission held their monthly meeting on Monday evening. The City, because of contributions from Twin City Co-op, several businesses, individuals, and proceeds from the dunk tank at the Ice Cream Social, was able to add $800 to the Friends of the Parks account. Parks and recreation services will stay as they are, with a minor change here or there. Council member Lamb said the Ramsey County Suburban HRA levy has been approved for $800,000. This will be a good program for Falcon Heights to participate in because it will help maintain and improve the housing stock. FALCON HEIGHTS CITY COUNCIL MINUTES -7- September 10, 2003 REPORTS FROM COUNCIL MEMBERS (continued) In response to a question from Council member Lindstrom, Council member Lamb said that each community will receive a lump sum allocation and it will be left to the local City to determine how the funds will be expended. When the City receives more detail, it will be good to put this on an upcoming Council meeting agenda. INFORMATION AND ANNOUNCEMENTS: Administrator Worthington said the City wide garage sale will be held on Saturday, September 27, from 9 AM-3 PM, at residents’ homes. Call City Hall and give your address, and it will be placed on a web site map and on paper copies of same. The City will be advertising the City wide garage sale in three local papers also. The community clean up will be held on Saturday, October 4, at the State Fair Grounds, in the Camel Lot, corner of Underwood and Hoyt. A fee will be charged and to be able to dispose of materials you will need to bring some type of identification as proof that you are a Falcon Heights resident, either a driver’s license, MN identification card, or the flyer you received that has your address on it. Volunteers will also be needed to assist with this event. The regular City Council meeting was adjourned at 8:05 PM. Respectfully submitted, Mary Shea Kodluboy Deputy Clerk