HomeMy WebLinkAboutCCWkspMin_07Oct03Falcon Heights City Council Workshop
October 3, 2007
Members present: Mayor Gehrz, Council members Harris, Kuettel, Lindstrom and Talbot, Administrator Miller, Assistant City Administrator/Deputy Clerk Kreuser, Finance Director Olson,
and Finance Intern Yard.
Mayor Gehrz convened the workshop at 6:35 p.m.
1. Garden Avenue Safe Routes to Schools Proposal
Administrator Miller began the first item on the agenda by explaining the Safe Routes to School grant application proposal. He stated the grants awarded last period were given to the
bigger, more-encompassing projects, and thought that a sidewalk along Garden Avenue, a highly traveled route to Falcon Heights Elementary, may have better luck especially since it would
connect to other arterial streets (Snelling and Hamline). He went on to explain there were two options in looking at the grant application. 1) Apply for the maximum grant amount of
$175,000 and build a pathway along the current parking lane, coming up with the additional $125,000 needed for the project. 2) Apply for the $175,000 and build a sidewalk into the existing
right-of-way for a total project cost of $188,000. He added that no addresses are on Garden Avenue, resulting in no assessment fees for the project.
Mayor and councilors agreed to go for the second option, which if the city would be awarded the grant, would have less financial impact on residents. Miller added that if the full amount
of the grant is not awarded to Falcon Heights there is the option to return the money.
Miller will be writing a letter to the ten homeowners abutting Garden Avenue to gauge sentiment on the issue before beginning the grant application.
2. Proposed 2008 Enterprise, Special Revenue, and Debt Service Budgets
The first budget examined by the council was special revenue.
Council member Kuettel asked how much the city is subsidizing the park and rec programs. Miller replied the fees for classes had increased 3% annually, and with a significant raise
in revenue in 2007, the fund would need $20,000. Council member Harris noted some of the park programs were doing extremely well, and the biggest hurdle to offering more of those classes
was space.
After briefing discussing the community garden fund, the council moved to the water budget. Finance Director Olson told the council to remember that fund could be used for refurbishment
of the Telesquirt truck. Mayor Gehrz stated, with Council members Harris and Lindstrom in agreement, that it would be wiser to gradually increase the charges in accordance with inflation
rather than make big jumps to pay for big-ticket items. Administrator Miller is to bring the water fund back to the council after reviewing numbers.
According to Miller, the recycling fund was healthy, with the Environment Commission looking at the potential to offer compost bins or rain barrels to residents.
Finance Director Olson will check with the auditors on whether the $25/student tuition charge for CERT classes would be able to be kept in the Citizen Corp/CERT grant fund, separate
from the grant dollars.
The council discussed enterprise funds next, beginning with sanitary sewer. Miller and Olson described the financial picture of this fund, stating the balance continually runs a deficit
at the current charge rates to customers. The main driver of the deficit is increases in the Met Council charges to the city. Miller explained the rate increases were due, in part,
to the Met Council likely building their fund balances in order to prepare for population growth over the next decade. Council members Kuettel and Harris wanted staff to investigate
raising charges to commercial more than raising charges to residential customers. It was calculated the Met Council’s charges increased 15% from ’07 to ’08, and Mayor Gehrz stated that
at least the 15% increase would have to be passed on to all customers. Council member Lindstrom agreed by stating the increase was justified. Staff will produce projections based on
a $2/mo increase, but will conduct more research on what the correct percentage increase should be for commercial properties.
Storm sewer projections are not any better according to Miller. He explained $2/mo would be the break-even point for the fund. The storm drainage fund also owes the general fund $300,000.
He reminded the council that the U and State Fair do not pay into this fund. The council discussed the implications of $2/mo raise in rates, and thought it best to raise the commercial
rates the same rate. Staff will continue to work on the budget funds before council discussion and approval during December.
The workshop concluded at 8:10 p.m.
Respectfully submitted,
Stacey Kreuser
Assistant City Administrator/Deputy Clerk